Questionable Housing Deals in Bucharest

Mayor Viorel Lis makes gifts to politicians from the Public Housing Fund 

This article appeared in the newspaper “Evenimentul Zilei” on April 5, 2000

 

Here is a list of some Romanian public officials whom Mayor Viorel Lis gave free housing from the public housing fund:

 

Dorin Marian – Presidential Counsel;

Gheorghe Huiu – Presidential Counsel;

Iustin Nastase – Presidential Counsel;

Radu Stroe – General Secretary of the Government;

Alexandru Herlea – Minister;

Sorin Pantis - Minister;

Simona Marinescu – State Secretary at the Ministry for Labor;

Elena Zamfirescu – State Secretary at the Ministry for Foreign Affairs;

Liviu Popescu – State Secretary at the Ministry for the Interior;

Mircea Criste – Attorney General of Romania;

Radu Sirbu – Chief of State Property Fund;

Lucian Mihai – President of the Constitutional Court;

Dumitru Cioflina – Former Chief of Staff in the Romanian Armed Forces;

Gabriel Tepelea – Senator from the PNTCD Party;

Alexandru Sassu – Vice-President and Representative of the PD Party;

Catalin Chirita – PNTCD Mayor for the 5th District of Bucharest;

Ioan Dinuta - PNTCD Mayor for the 6th District of Bucharest;

Marian Lutu – The Mayor of the 4th District of Bucharest who was arrested:

And the list contains many more.

 

We believed for a long time that the Mayor of Bucharest was not able to provide public housing for that part of the Bucharest population that needed it.

The list of people requesting public housing became longer and longer.  People without any housing would wait for days on the hallways of the Bucharest City Hall for an offer, but Mayor Lis would invariably tell them that there was no public housing available.  We got used to it.  If there is no public housing available then there isn’t.  Recently, Mayor Lis found a solution for this problem.  He decided to buy about 200 apartments with public money and then place in them the poorest of those 11,000 people who were requesting public housing. We applauded his gesture without ever suspecting that Mayor Lis had public housing available all along, but he chose to place his friends in it, based on political and personal criteria and interests.

According to a report made by the Public Housing Commission (Serviciul Spatiului Locativ) and at the request of some members of the Bucharest City Council 2,154 apartments from the public housing fund were made available to applicants during the time Mayor Lis was in office. Among these, 1,499 residences were made available under personal and direct signature of the First Mayor.  Among these, 633 of the best residences were made available for some public officials, politicians, and media representatives who were on very good terms with the Mayor of Bucharest, Viorel Lis.

It is possible that some of the cases mentioned above were legitimate and some of these people received housing legally. But the fact that these people were on the Mayor’s housing list determined us to look for some answers.  Legally a person who already has a residence within Romania or a person who sold a residence after 1990 cannot receive housing from the public housing fund.  Can one believe that the Presidential Counsel Dorin Marian did not have any housing, so that Mayor Lis was forced to give him two in a year, one house and one garage?

Can one believe that Presidential Counsel from Cotroceni Gheorghe Huiu did not have any housing either, so that the mayor was forced to give him another two apartments?  Other officials must have been also without any housing, so that they benefited legally from public housing provided by the City of Bucharest.  For example Radu Stroe, General Secretary of the Government (PNL), Alexandru Herlea, the Minister for European Integration (PNTCD), Lucian Mihai, the President of the Constitutional Court, Sorin Pantis, the former Minister of Telecommunications (PD), Mircea Criste, the Attorney General of Romania, Iustin Tanase, the former Counsel of the President (PNTCD), Andrei Svoronos, the Governor of the Danube Delta, Simona Marinescu, the Secretary of State in the Ministry for Labor, Elena Zamfirescu, the Secretary of State from the Ministry for Foreign Affairs, Alexandru Sassu, the Vicepresident and Representative of the PD party, the Representatives of the Governmental Coalition Francisc Vaida, Constantin Aferaritei, Liviu Negoita, Laurentiu Dumitrascu, Cosmin Bucur.

Florentina Athanasiu, the wife of the former Minister of Labor, obtained an apartment after she had been evacuated from a residence that had been recently returned to the rightful owners.  The daughter and the niece of the Minister for Public Works, Nicolae Noica, obtained each one residence from the public housing fund because they were evacuated from their previous residences that were returned to the rightful owner but also because they were employees of the government.  The Secretary of State from the Minister of the Interior Liviu Popescu could not fight corruption from a studio apartment, so he received a two-bedroom apartment.  And the former Chief of the Bucharest Police, Colonel Radu Balici, received two apartments on Calea Victoriei because he was relocated with his job to Bucharest.

Viorel Lis was also very generous with his counterparts from the Bucharest Districts.  He personally gave housing to Catalin Chirita (PNTCD), the Mayor of the 5th Bucharest District, to Ioan Dinuta (PNTCD), the Mayor of the 6th Bucharest District, and even to Marin Lutu, the arrested Mayor of the 4th Bucharest District.  Probably these “poor” mayors and officials had no housing because the generosity of Lis has only one legal explanation. Finally, Lis did something for his own family too, not only for public officials.  He gave a house to his fiancée Oana Ungureanu.  But only after he also gave housing to his secretary.  Saturday night, the Mayor of Bucharest declared on a TV channel,  “that he gave housing especially to the working poor, orphans, and to handicapped persons”. In the report made by the Public Housing Commission (Serviciul Spatiului Locativ) there are not more than 10 residences made available to orphans and handicapped persons during the four years Mayor Lis was in office.  But, high-ranking officials had priority receiving public housing during these four years.  Lis even gave housing to the Mayor Marin Lutu who was later arrested on criminal charges.

Both, the Housing Law and the Decision No. 188 of the General Concil of the City of Bucharest establish the criteria by which a person can receive public housing in the City of Bucharest.  Housing is made available by a commission led by the Mayor of Bucharest who analyses who has priority to receive public housing in Bucharest.  First of all, the petitioner is not allowed to have sold a property after 1990 or to be the owner of another property at the time he/she requests public housing.  Families with numerous children, families with low income, families that have been evacuated from properties that were returned to the rightful owners have priority in receiving public housing.  During the Saturday night interview, Mayor Viorel Lis said: “An inspector makes a social investigation of the petitioner, which he then presents to the housing commission and then to me to be signed.  Depending on the results of this social investigation, we decide who has priority to receive public housing in Bucharest.”  

If this is true, it means that in 1996 the inspector made a social investigation of the home of the former PNTCD Mayor of the 4th District of Bucharest Marin Lutu.  The inspector then convinced Lis to give high quality public housing to Lutu.  Lis gave Lutu a three-bedroom apartment on Decebal Boulevard.  After three years, when Lutu was arrested, the police discovered that Lutu had a luxury mansion and several other apartments besides the apartment received from the public housing fund.  In the same year 1996, the Press Secretary of the current government, Ms. Gabriela Vrinceanu-Firea, who at that time was a promising journalist at the state-owned television station TVR, received housing from Mayor Lis.  Her housing was not in a central location because she wasn’t a public official yet, but it was still housing from the public housing fund mainly meant to serve the poor and the disadvantaged population.

According to the report made by the Bucharest Public Housing Commission (Serviciul Spatiului Locativ), 72 of the 138 apartments (that were made available by Mayor Lis in 1996) were granted to governmental institution, to Members of the Parliament, to employees of the Bucharest City Hall, and to privileged journalists.  All apartments were made available to the applicants’ institutions, instead of to the applicants directly.

Some presidential counsels were granted two apartments, instead of one.  Of course, after the new dignitaries came to their posts, they had to have adequate housing.  Since Decision No.188 of the General Council of the City of Bucharest stipulated that housing for employees of public institutions and ministries comes last on the list of housing priorities, Mayor Lis found it necessary to reverse the order of priorities.  Thus in January 1997, Mayor Lis made available a three-bedroom apartment on Nicolae Titulescu Boulevard for the presidential institution.  The presidential office out of Cotroceni sent the presidential counsel Dorin Marian to live there.  This transaction would have been legal if Dorin Marian had no residence in Bucharest.  At the end of the year 1997 Mayor Lis gave Dorin Marian a garage on the May 1st Boulevard.  The presidential counsel Gheorghe Huiu seemed to be unhappy with the first residence he received from Mayor Lis.  In March 1997 he was sent to live in the luxury mansions district, on Schitu Magureanu, by the Cismigiu Park, in a two-bedroom apartment.  But he moved two months later in a three-bedroom apartment in a very central location on Unirii Boulevard, building K4.

The Presidential Institution of Romania received from Mayor Lis 10 valuable apartments for its employees.  The Romanian Parliament received 16 valuable residences for its employees.  Gabriel Tepelea, the Vicepresident of the PNTCD Party, moved into one of them. The former Prime Minister of the Republic of Moldova, Mircea Druc, presently party leader in Bucharest, also received housing from the Mayor of Bucharest.  In 1997, 51 Bucharest city employees received housing from Mayor Lis.  Finally, from the 674 apartments made available by Mayor Viorel Lis, 40 % (260) were given to dignitaries, government employees, members of parliament, or other public employees. 

If in 1997 not all public employees managed to get housing from Mayor Lis, the next year almost all public dignitaries were the recipients of public housing from the public housing fund.  The Liberal Radu Stroe, the general secretary of the government, who had been evicted by his wife, as the report of the Public Housing Commission (Serviciul Spatiului Locativ) shows, received an apartment in a central location in Bucharest.  The Minister for the European Integration (PNTCD), Alexandru Herlea, who used to share an apartment with his mother, received a two-bedroom apartment in a central Bucharest location, on Unirii Boulevard.  The President of the Constitutional Court, Lucian Mihai, gave up his apartment on Rosetti Street and received a four-bedroom apartment on the Unirii Boulevard. The Governor of the Danube Delta, Andrei Svoronos, gave up his studio apartment and received a two-bedroom apartment in a very central Bucharest location. The rightful owner evicted the former Minister of Telecommunications, Sorin Pantis, from his residence and so; Mayor Lis gave the former minister a three-bedroom apartment on Unirii Boulevard.  The Attorney General of Romania gave up a two-bedroom apartment on Mihai Bravu Boulevard and received instead an apartment on Unirii Boulevard that is located only two minutes from his office.

The Secretary of State from the Minister of Foreign Affairs, Elena Zamfirescu, received a residence in a luxury mansion.  The Vicepresident of the PD Party, Alexandru Sassu, received an apartment located close to the government building.  Constantin Aferaritei, the revolutionary representative, received according to the Revolutionaries Law, a two-bedroom residence after he has rented several commercial spaces for his business.  The Colonel Radu Balici, Bucharest Police Chief, was relocated with his job from Sibiu to Bucharest.  To be in accordance with the law, he was not supposed to have a house in Sibiu.  Mayor Lis gave him two apartments on Calea Victoriei 100 (20A-20B), because the mayor thought that it was a good idea to be friends with the police.

The wife of the former Minister of Labor, Florentina Athanasiu, also received a centrally located apartment.  The former minister of labor declared that it was very hard for him and his family to get housing.  “We were evacuated from a residence in Cotroceni that had been nationalized.  We received this apartment after great efforts but it is in an earthquake prone location.  In a few days, we will leave this residence, because it is scheduled for renovation.  Receiving this residence was not influenced by my position.”

 

Residences for the president’s assistant and for the minister’s daughter

 

In the year 1988 the employees of the presidential office received only four residences.  During 1988, second-degree government employees were scheduled to receive housing.  The former secretary of the CSAT (Supreme Council for Defense) Calin Costel, received an apartment in a new building on 13 September Street. Mihaela Macau, from the presidential office, used to live together with her parents.  She also received housing close to the Presidential residence in Cotroceni.  Iustin Tanase, former presidential counsel, presently assistant general secretary of the PNTCD party was luckier.  He moved from his parents’ house into a centrally located two-bedroom apartment.  Former President Constantinescu’s assistant, Cristian Fainis, moved out of his parents’ house to an apartment on Calea Calarasi.  Seven employees of the parliament and 13 employees of the government also received new housing.  Two government employees are members of the family of the Minister for Public Works, Nicolae Noica.  Laura Noica, the minister’s niece, obtained a centrally located studio apartment.  Ruxandra Noica, the minister’s daughter, received from Mayor Lis a four-bedroom apartment on Spatarului Street.  Minister Nicolae Noica has an explanation for this: "The apartment on Spatarului Street belonged to our family and it was returned to us according to the law.  This was done through the city administration.”

The PNTCD leader from Ilfov, Bogdan Cantaragiu, who is one of the Secretary of State Alexandru Popescu’s assistants, received a three-bedroom apartment.  Summarizing, in 1988, from 535 available apartments, 200 were given by Mayor Lis to public officials, according to the report made by the Public Housing Commission (Serviciul Spatiului Locativ).

 

Residences for Remus Opris’ secretary and for Mayor Lis’ fiancée

 

1999 was a weak year regarding public housing that was made available by the Mayor of Bucharest.  Viorel Lis could only give 159 apartments, which is well below the number he made available in previous years.  From these 159 apartments, 100 to 110 were given to public officials.  Being at the end of his term, Mayor Lis could not allow the secretary of Remus Opris, Cristina Pruteanu, to go without public housing provided by the City of Bucharest.  Thus, he gave her an apartment.  And Mayor Lis could not allow that his own fiancée, Oana Ungureanu, be left without public housing provided from the public housing fund.  He gave her a studio apartment in the center of Bucharest.  Two friends of Mayor Lis’ fiancée also received residences from the Mayor.  These are Cristina Ursu from the City Hall protocol office and Ramona Stanciu from the City Hall office of the press. Minister Vlad Rosca’s cabinet chief also received housing from Mayor Lis.  The Chief of the FPS also received housing in Bucharest.

In the last year of his mandate, Mayor Lis could not forget one of the most influential PNTCD party officials, Radu Sirbu, FPS. . Since Radu Sirbu relocated from Cluj, where he was not supposed to have had any housing if he were to legally receive housing in Bucharest, Mayor Lis gave him housing on Queen Elisabeta Boulevard, a central Bucharest location.  The Chief of the FPS, Bucharest branch, George Scarlat, also received a two-bedroom apartment on Marasesti Boulevard.  The Secretary of State from the Department of Religions, Gheorghe Angelescu, needed housing.  He received one from Mayor Lis.  The representatives of the government coalition, Liviu Negoita and Laurentiu Dumitrascu, also received public housing.  The Secretary of State from the Minister of the Interior, Liviu Popescu, used to live in a studio apartment.  Mayor Lis gave him a two-bedroom apartment on Calea Calarasi.  Mayor Lis, when he gave public housing to Catalin Chirita, the PNTCD Mayor of the 5th Bucharest District, did not know that this man would become his party opponent in the local elections.  If he knew he probably wouldn’t have given him any housing at all.

The list of apartments given by Mayor Lis to public officials during his four years in office must reach the hands of the local council members.  The council members want to know who are the lucky beneficiaries of public housing given out by the Mayor during the four years he told the general public that there was no public housing available for anybody.  It seems that public housing was available only for privileged public officials with strong ties to the Mayor.  Among these are also journalists from the newspapers “Evenimentul Zilei”, “Adevarul”, “Libertatea”, “Academia Catavencu”, “Cronica Romana”, “Curierul National”, “Ziua” as well as from television stations like TVR, Antena 1, Prima, Pro TV, etc.

 

O.C.HOGEA,

DAN BADEA,

ADRIAN NITA

 

Explanations given by some of the lucky beneficiaries of public housing

 

Dorin Marian - presidential counsel:  "I requested a service residence for my job and I refused three offers because they were inadequate.  For example, I refused Mr. Basescu’s residence because it was too small.  I received a residence on the 3rd floor in a 10 floor building on Titulescu Street.  I don’t have any other residence.  I lost the apartment in Timisoara after the divorce, by a final and irrevocable court decision.  Later I requested to buy the apartment in Bucharest and I obtained a mortgage from CEC at 78 % interest which I will pay back in 20 years.”

Alexandru Herlea - a former minister:  "I used to share mother’s apartment where I had a transit room for two years.  Then I received this two-bedroom apartment.  I don’t own any other property in Romania, but my mother donated her apartment to me.  She kept a right to this apartment though, that allows her to use it as long as she is alive.  My mother is pretty sick and she has a caregiver who lives with her.”

Ioan Dinuta – Mayor of the 6th Bucharest District:  "I was given this residence according to the law.  I used to live in my parents’ house.  I have two children and I haven’t moved into the new apartment because I don’t have the money to furnish it.  I never had another residence private property.  This can be verified.”

Radu Stroe – General Secretary of the Government:  "It is true that I received an apartment.  I didn’t have one before and I don’t have another one in the present.” Mayor Lis’ justification:  "It is true that residences were given to public dignitaries, among which were also ministers, but it is normal that when a person comes to Bucharest as a minister, he or she should receive public housing if he or she doesn’t have one already.  The two Bucharest District Mayors (Catalin Chirita and Ioan Dinuta) received housing because they had the right to receive public housing.  Ioan Dinuta did not have a residence private property in Bucharest.  Catalin Chirita exchanged the three-bedroom apartment that he had before, for an apartment that we gave him.  Moreover, I was asked on numerous occasions by representatives of the parliament, the government, and the presidency to help some employees of these offices who did not have housing with receiving public housing.  Everything that I gave, even if I gave it to public officials, can be verified.  Every single one of these applicants made correct and legal applications and I took over these cases in order to solve them.”

 

Other persons with good connections to the Mayor and who received public housing:

 

Liviu Hagea – Secretary of State in the Industry Ministry;

Liviu Viclea – from the State Property Fund;

Ion Marita – Prosecutor in the Attorney General’s Office

Mihai Boruzescu – from the Health Inspection Agency;

Ioan Dinuta – Mayor of the 6th Bucharest District;

Horatiu Tica – member of the PNTCD Youth, publicity director at the Bucharest City Hall;

Dan Popa – former general prosecutor at the Bucharest Appeals Court;

Dinu Mihai – former first prosecutor at the Bucharest Tribunal;

Col. Virgil Vochina – chief of public relations at the Minister for the Interior;

Col. Tudorel Dragomirescu – assistant director of the economic branch of the police;

Daniel Ghioca – director of the judicial branch of the Bucharest City Hall;

Geani Dabu – former chief of the administration of the City of Bucharest streets;

Stefan Farcas – counsel of the Mayor of Bucharest;

Gabriela Rindasu – chief in the Public Housing Commission;

Gheorghe Paun – chief inspector in the department for handicapped persons;

Aurel Temisan - singer;

Ioana Babiuc – daughter of the former minister of the defense;

Ana Maria Tinu – the daughter of the director of the “Adevarul” newspaper;

The "Auto-Rom" Firm – owned by Ion Tiriac;

Gheorghe Zamfir – pan flute artist;

The “Sfanta Teodora” Foundation Bucharest – two apartments;

Eugen Bujoreanu – former Mayor of the 4th Bucharest District, presently counsel at the Bucharest City Hall;

The Foundation “Cerbul” Bucharest – two apartments;

 

The Great Gifts

Wednesday, April 5th 2000 Daily Commentary

 

Getting rid of Dictator Nicolae Ceausescu was done in part also for reasons pertaining to properties that had been nationalized.  The time had come that some privileged people would take legally into private ownership the properties they had received from the Communist Party.  The fight for the property laws has also an underlying cause in the problem of the nationalized properties.  The terrible maneuver with the tenants has the same underlying cause.  PDSR adopted a law according to which almost all tenants were legally permitted to buy at very low prices the houses they were occupying as tenants.  The tenants could not longer accept the idea that they were tenants.  They wanted to become homeowners.  This situation blocks the possibility that the nationalized properties will ever be returned to the rightful owners.  How can a property law be adopted that would deprive tenants of properties over which they became overnight homeowners and for which they paid derisory amounts?  They wouldn’t give up these properties for anything in the world!  Not for ideology or for any other reasons.  They do not want to give up these properties because they obtained them too easy and now they want to give a legal turn to these property seizures.

We believed that after 1996 the political power in Romania would become honest and democratic.  We believed in a little morality and consideration.  But the reality can be seen in the way nationalized properties were given out in Bucharest: a little bit to the poor and a lot to the rich and powerful.  Almost nothing was given to members of the PDSR.  It is true that between 1990 and 1996 Ion Iliescu’s people got their lion’s share.  This is why on Mayor Lis’ list no luxury mansions are available.  But by studying the list of residences given out between 1996 and the present we can see that the power was maintained especially in the residential sector.  For most of those who won the elections this meant that their housing needs were resolved.  Is it moral?  Is it correct?  Is it legal?  Some of the people on the list have various explanations.  Since we received this list at our newspaper we were bombarded by phone calls.  We were asked not to publish such and such name.  On the contrary, we tried not to exclude anybody, even those with obscure and unknown names.  Many of these housing “gifts” have Mayor Lis’ signature.  But concentrating in criticizing only Mayor Lis is like looking for a scapegoat.  Lis has a moral responsibility and he should have known what his people were doing.  He could be asked to justify why he signed some of these housing “gifts”.  But it seems unfair to accuse Mayor Lis that he gave all these apartments to people with power at his own initiative.  It is absurd to suggest that he might have gone to the different public and political institutions asking around who wanted to receive free public housing!  The hundreds of apartments given out for free to powerful people are the result of political pressures exerted on the Mayor by all these public and political institutions.

If Mayor Lis had kept a record of all the phone calls he received regarding interventions for public housing he would have given us a free ticket to the political show going on behind the scenes.  We would have had a grotesque portrait of the Romanian political class.  Why do we believe this?  Because very few people become embarrassed when it comes to their own interests.  Most are aggressive, are putting up a show and have no scruples.  They don’t have any shame in putting themselves before others and in believing that having power means first of all solving their own personal interests.  This is a cynical and very typical Bucharest vision of democracy!

The list of public housing that was given out for free in Bucharest to those powerful gives us an image about the behavior of the current Romanian political class.  It would be unfair to regard it without remembering the same illegalities that were done during the time of the PDSR government.  Unfortunately, the conclusion is equally sad.  The first ones (PDSR) seized the best properties and the ones who came afterwards were left to seize the rest.  But it was still a seizure and it causes great anger in the hearts of the regular poor population.  These are left only with promises and they never receive anything from those who have been elected to power.

 

 

Abbreviations

PNTCD = National Peasant Party, Christian Democrat

PDSR = Party of Romanian Social Democracy

PD = Democrtc Party

PNL = National Liberal Party

FPS = State Property Fund

CSAT = Supreme Council for Defense