Romanian construction company Tel Drum, which is currently being investigated by the National Anticorruption Directorate (DNA) for having illegally won several public contracts for roadwork in Teleorman county, has filed for insolvency.

Last week, DNA prosecutors announced they’ve extended the investigation in the Tel Drum case, the company being investigated for setting up an organized crime group, continued tax evasion, and complicity in abuse of office. DNA also imposed precautionary measures on all the movable and immovable property of the firm, as well as on the amounts of money to be transferred to it. The insolvency claim was filed the same day, local Profit.ro reported.

“Taking these precautionary measures has made the company unable to honor its contractual obligations and payments," the company lawyer told Profit.ro.

In their turn, the DNA prosecutors have asked the Bucharest Tribunal to rule against the initiation of the dissolution or liquidation procedure of Tel Drum, or to suspend those procedures, according to a press release from DNA, issued on Thursday, January 25. They said that Tel Drum SA has already requested the opening of insolvency proceedings, which creates the risk of liquidation and short-term liquidation of the company so that it can no longer be prosecuted.

Tel Drum is believed to be controlled by Social Democratic Party (PSD) leader Liviu Dragnea, who has repeatedly denied any connection to the company. Dragnea himself is being prosecuted for abuse of office and EU funds fraud in a case related to contracts awarded by the Teleorman County Council to Tel Drum several years ago. He stands accused of establishing an organized crime group, abuse of office, and EU and national funds fraud during the time he was the president of the Teleorman County Council. In this case, the prosecutors froze his assets on November 21, 2017.

Romanian firm involved in biggest corruption case of the moment had big contracts with the state

Irina Marica, irina.marica@romania-insider.com