Romania’s National Anti-Corruption Directorate (DNA) has detained local investor Eduard Martin, co-owner and manager of the local firm Polaris M Holding SRL, in a case of tax evasion.

The damage to the state budget is estimated at RON 30 million (EUR 6.5 million). The company has allegedly registered false expenses to diminish its tax obligations to the state budget, according to prosecutors.

Marcel Daniel, president of the company’s board, was also detained for 24 hours. Both were charged with tax evasion.

The company’s main revenues have been the sanitation contacts with the Constanta City Hall since 2006 until now. Polaris M Holding was charging overvalued tariffs from the city hall.

The prosecutors started a different investigation into this and the case has reached the court.

The company has received about EUR 1 million per month from the Constanta City Hall. The real expenses for sanitation services were much lower.

Eduard Martin, a former MP of the Social Democratic Party (PSD), is the brother of Dumitru Martin, who was sentenced to 13 years in jail by a US court for bribing an American officer. He offered the bribe so that Polaris M Holding would get a sanitation contract worth some USD 10 million at the Mihail Kogalniceanu military base in Romania, which is used by the US.

editor@romania-insider.com