Officers raided the house of businessman Constantin Badescu in Drobeta Turnu Severin on Thursday morning (November 1 ) as part of investigation into an alleged EUR 12 million tax evasion fraud, according to reports in the local press.

The businessman owns companies in Satu Mare and Drobeta Turnu Severin, which have contracts with the City Hall and the County Council. There were 25 searches in total and investigators have 15 warrants to detain people suspected of membership of a criminal organization, fraud, money laundering, forgery of documents and tax evasion.

Badescu is one of the most influential businessmen in Mehedinti county, owner of local and regional transport companies, operating in areas such as distribution of food and beverages, restaurants and construction.

Many of the auctions for the roads in Mehedinti were won by companies owned by him, with contracts including with Drobeta Turnu Severin City Hall. One of contracts for the rehabilitation of city streets, has EU funding of about EUR 20 million.

According to judicial sources, in 2009-2012 the companies of the businessman Constantin Badescu and others in Satu Mare issued fictitious invoices and illegally charged VAT amounting to EUR 12 million.

Constantin Badescu number 382 in the Forbes magazine rankings for Romania, with a fortune estimated at EUR 10 - 11 million, making him the wealthiest man in Mehedinti county.

Ioana Toader, ioana.toader@romania-insider.com