Arena Chișinău Project – Financial Irregularities
Prime Minister Maia Sandu maintains that so far no documents have been identified that would justify the €43 million cost of the “Arena Chisinau” project, started by the former Democratic Party government. At Prime Minister Sandu’ s request, the Ministry of Finance and the Ministry of Economy are to investigate whether public funds were used appropriately in this project. This was decided during a government meeting on July 10.
According to the head of the Government, the “Arena Chisinau” project could be an example of “wasting public money ” or a “extortion scheme” because the public-private partnership contract provides disadvantageous conditions for the state. They provide only a one-year guarantee and in the event of state debts, the private company can take over the project.
“At first glance it’s a scam. First of all, it is not clear how the costs of this project were planned because no supporting documents were found. Now the amount of €43 million assessed for the project seems [to have been] approved arbitrarily. Until now there were no supporting documents found to clarify how this amount was calculated. Now the cost is €44.5 million and the risks in this case are that the real cost is less than what the Republic of Moldova is spending on this project,” declared Prime Minister Sandu at the beginning of the Government meeting.
In addition there being no justification for the project’s cost, or the allocation of 69 hectares of land when the construction will only occupy 10 hectares also raises questions. According to the Prime Minister, it is not clear what will happen with the remaining 59 hectares.
At the same time, Sandu says the former governance has changed the allocation of the land from “agricultural” to “construction land,” without including the cost of the operation, which might cost the state an estimated €4.5 million in additional contributions.
“On the other hand, I learned that the notarial fee was paid by the state as required €20 000, which went into the pocket of Vlad Plahotniuc’s personal notary, namely Olga Botnarenco,” said Maia Sandu, stating that the deputy who proposed the amendment that allowed the signing of the contract is the Democrat Vladimir Andronachi. According to the Prime Minister, by signing the amendment it was agreed that the private partner could take over the project on account of government debts.
Prime Minister Sandu also pointed out a “synchronization”: the signing of the contract on 24 August 2018 – the same day when Monitorul Oficial published the law that allowed the signing of the contract.
At the Government meeting, Maia Sandu asked the management of the Ministry of Education, Culture and Research to submit a request to the Ministry of Finance and the Ministry of Economy for a financial and technical audit on everything that has happened so far within this project.
She also requested that law enforcement authorities investigate the decisions of those involved in the project in advance.
“After investigating the abuse, we will see how we can correct the project. Those guilty of having approved a 44-million-euro project without providing sound justification will have to answer” said Prime Minister Sandu, pointing out that the construction work on the Arena continues and will not be stopped until “all the abuse” are documented.
The subject of the construction of a multifunctional arena initially called “Chisinau Arena,” was first made public on 13 March 2018. Former Democratic Party leader Vladimir Plahotniuc announced the project, which was presented by his godson, Andrian Candu, then Head of Parliament. Subsequently, for the construction of this arena the state allocated €10,000 from funds allocated for road repairs. As a matter of urgency, it was decided that 69.2 hectares of land were to be excluded from being allocated as “agricultural land” and this area – formerly the property of the Center of Excellence in Viticulture and Wine-making – was put under the administration of the Ministry of Education, Culture and Research and categorized as “construction land.”