RCS&RDS accused of money laundering
August 1, 2017
By Chris Forrester
Romanian and Hungarian cable operator RCS&RDS, and some key officials, have been accused of alleged money laundering offences.
The company’s parent, Dutch-registered Digi Communications, in a statement, says that an investigation by the Romanian National Anti-Corruption Directorate and previously reported to the market in April, “that, on 25 July 2017, RCS & RDS S.A. (the Company’s subsidiary) was indicted by the DNA in connection with the offences of bribery and money laundering, INTEGRASOFT S.R.L. (one of RCS & RDS S.A.’s subsidiary) was indicted for the offence of accessory to money laundering, while Mr. Mihai Dinei (member of the Board of directors of RCS & RDS S.A.), was indicted by the DNA in connection with the offences of accessory to bribery and accessory to money laundering.”
“Additionally, on 25 July 2017, the DNA confirmed that it attached two real estate assets pertaining to & RDS S.A. to secure an amount of up to Lei 13,714,414 (approximately EUR 3 million). Should RCS & RDS S.A. be found guilty for having committed the alleged criminal offences by a final court resolution, it is possible that enforcement be made against these assets up to the value of the secured amount.”
“Subsequently, on 31 July 2017, Mr. Serghei Bulgac (Chief Executive Officer of the Company and General Management and President of the Board of Directors of RCS & RDS S.A. – the Company’s subsidiary), was indicted by the DNA in connection with the offence of money laundering.”
Digi added: “We do not expect these measures to interfere with the Company’s, RCS & RDS S.A.’s or any of their subsidiaries’ business in any material manner.”