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EXCLUSIVE: State Intervention Alleged in Moldovan Banking Scandal

A shocking report has revealed that top officials in Moldova’s government and banking sector colluded to provide financial aid to troubled banks, potentially perpetuating a massive fraud scheme. The investigation, conducted by Kroll, suggests that the state intervention was used to benefit the banks, rather than protecting taxpayers’ money.

The Investigation

According to documents obtained by our publication, the National Bank of Moldova (NBM) provided financial assistance to three major banks, including BEM, BS, and Unibank, worth 9.5 billion lei in November 2014. The decision was made during a secret meeting attended by high-ranking government officials, including then-Prime Minister Iurie Leancă.

State Intervention Under Guise of Financial Assistance

The report highlights that the state intervention was conducted under the guise of providing financial assistance to troubled banks during a systemic financial crisis. However, evidence suggests that the authorities were aware of ongoing fraud within these banks and failed to take action.

Unsecured Loans and Fraud

  • The Three Banks had granted loans worth 25.5 billion lei to companies linked to the Shor Group, which is believed to be involved in large-scale fraudulent activities.
  • The report notes that the authorities did not stop the issuance of unsecured loans after providing financial assistance, potentially perpetuating the fraud.

The Kroll Report

The Kroll report also reveals that:

  • The NBM’s reserves were used to allocate the funds for financial assistance.
  • The government guaranteed the loan through a secret decision in October 2016.
  • The law passed at the time allowed for the transfer of the loan to public debt, effectively hiding the true extent of the state’s involvement.

Expert Reaction

“This is a clear case of state capture,” said political analyst Sergiu Pusca. “The authorities have compromised their duty to protect taxpayers’ money and have instead lined the pockets of corrupt officials.”

Call for Transparency and Accountability

As the investigation continues, questions remain about the true extent of the fraud and the role played by top government officials. The Moldovan authorities have been asked to comment on the allegations but have so far refused to do so.

Stay tuned for further updates as this story unfolds.