<i>Hello! Gabriel Petrescu?</i> <i>Hello!
Petrescu!</i> - I'm Father Aurel Mihai.<i>
- Hello! Gabi Petrescu.</i> - Gabi?<i>
- Petrescu.</i> Petrescu... <i>Oh, Gabriel!
May God give you health!</i> <i>I was just thinking of you.</i> A RECORDER JOURNALIST INFILTRATED
THE CHURCH'S FINANCIAL NETWORK - Should I kiss their hands?<i>
- No, just say hello.</i> <i>- Hello!</i>
- Welcome! <i>- It's nice to be here!</i>
- Come in! - You’re beside the Great White...<i>
- The Great White? Is that what you call him?</i> A NETWORK THAT SECRETLY RIGS TENDER
PROCESSES WORTH MILLIONS OF EUROS Leave your phones in there. <i>How can we be sure we'll win
a tender process or two?</i> - The proposal's used for a tender process.<i>
- Okay.</i> <i>- And it's won by whoever did the proposal...</i>
- Yes. The specification goes to the firms named
by you or me, I'll name a couple too. A SYSTEM WHERE ONLY THE CHURCH’S
ANOINTED FIRMS PROSPER - Hi!<i>
- Morning!</i> <i>- Are these churches?</i>
- Yes, each one's a contract. <i>- Holy moly! They're all contracts?</i>
- Yeah, mate... A SYSTEM HIDDEN BY THE CHURCH
AND ENDORSED BY ITS LEADER If our Patriarch's a very good manager,
people'll say he only cares about money. What's he supposed to do? In terms of funds, the
Romanian Orthodox Church is very poor. We’ll draw up a document
informing His Beatitude. And if we hold this meeting and get
his approval, we'll be fine... I asked the Great White,
that’s how it is... It’s true he was in the Securitate.
He knows more than anyone. THE CLAN OF THE "GREAT WHITE"
A Recorder investigation Recorder recently published
a probe into the deals behind the People’s Salvation Cathedral, Romania’s grandest building
project in 30 years. The Church oversaw the project
but relied heavily on public money. <i>Save your people, Lord!</i> The state gave the Church
11 hectares in central Bucharest with a market value of
about EUR 180 million. Then, over the last decade, the
government and local councils gave it an extra EUR 120 million
for the project. It spent the money non-transparently
under rules of its own making. Although it used public money, the Church
cloaked the project in secrecy and refused to say which
firms had won contracts or what they were earning
or charging for materials. Recorder has learned that
the winners of the contracts include politicians with
close ties to the Church. Adriean Videanu, a former deputy PM,
economy minister and mayor of Bucharest, made over RON 100 million through
his firm, which supplied marble. But despite its vast size, the
cathedral is just a small part of the empire built by the Church
under Patriarch Daniel’s reign. On taking office in 2007, the Patriarch
bemoaned the Church's financial situation. In terms of funds, the
Romanian Orthodox Church is very poor. In terms of the immediate
return we get on money, it's very poor compared
with what it should get. Since then, the Church has
seen a major overhaul that has boosted its assets considerably. In the last 12 years, the value of its properties
has risen by more than 80 times from RON 10 to 820 million. Its annual revenue has quadrupled
to RON 112 million. The latest Ministry of Finance
figures show that Orthodox dioceses, archdioceses
and metropolises bring in RON 590 million a year altogether. Then there are the revenues of the
thousands of churches and monasteries, for which the state has no exact figures. The main reason for this
unprecedented wealth is a new goal set by Patriarch Daniel: that the Church soaks up as much
public money as it can. This is being achieved through
a network of influence with political ties which is headed
by the Patriarch himself. <i>Our lord,</i> <i>Patriarch Daniel...</i> He uses his position to win the support of high-ranking politicians
for Church projects. We give this decoration of the
Order of the Holy Brâncoveanu Martyrs for his future help, too. Beneath him are several tiers of people who run the system that
draws in public cash. First, there are Church figures
who report directly to him and liaise with public institutions
on the Church’s behalf. Then there are politicians and civil
servants in parties and institutions who pull strings so that
political leaders' promises to the Patriarch are kept. At the bottom are businessmen who pick up public money
shared out by the Church: its “preferred suppliers”. We tried for months to find a way
into this watertight network so we could track the public money that all but disappears after
entering the Church's coffers. Eventually, we found a way in. - Let’s go!<i>
- Hello!</i> <i>Petrescu!</i> Lazăr Neacșu is serving a second term
as a PSD Bucharest city councillor. Before getting into politics,
he owned construction firms that were hired by the Church. Sources had told us he was a Church "fixer" who pulled strings to extract
cash from councils. As the Church never answers questions
about how it spends public money, we felt the only way to find
out was to go undercover and talk to Church figures
under an assumed identity. <i>I've not been here since
the revamp, it's great!</i> - No?<i>
- No.</i> These are our rooms. We contacted Neacșu under
the alias ‘Gabriel Petrescu’ and said we represented a consultancy
with ties to the political new wave. As councils had overlooked the Church
when budgeting for this year, we told him we could make up
for this with EU funding. To make our cover story more plausible, our bogus businessman said
that he'd been put onto Neacșu by a councillor close to the mayor
of Bucharest and was a member of USR PLUS, a party
in government at the time. So ‘Gabriel Petrescu’ had council
and government ties. All this was untrue, but it sounded good
to an opposition politician in a position to broker
backroom deals at City Hall. So Neacșu didn't check out our story and invited ‘Gabriel Petrescu’
to his council office. First, he gets us to leave our
phones in another room. Leave your phones in there
and we'll talk in here. <i>Hello!</i> <i>- I take it this [ashtray] means I can smoke?</i>
- Yes. <i>Mask off, as I'm jabbed.</i> This is a smoking room where
we councillors lark about. <i>Okay.</i> Neacșu explains the legal process by which churches in Bucharest receive public funds and then stresses his own importance in it. All churches in capital cities,
especially in Europe, receive funds from local or city councils. <i>Full stop.</i> Every year, priests at all 259 churches and 10 monasteries across Bucharest ask the city council for help with
various things as allowed by law. <i>- X, Y, Z, okay...</i>
- Right. From that list of over 100 churches, a team is put together, it’s made up of... <i>Aren’t agreements reached
separately with each...?</i> That'd be a hassle. Then the Monuments Authority man
comes to the mayor and says: “We need to talk to someone at the
council to see who wants what…” I’m a member of the Church Assembly. <i>- What?</i>
- Church Assembly. <i>- What’s that?</i>
- The National Church Assembly. Neacșu explains to us in detail the make-up
of this governing body of the Church. The Romanian Orthodox Church
is run by 45 bishops... <i>- I didn't know there were so many!</i>
- And 45 laypeople... <i>- Okay.</i>
- Ordinary people who... <i>- Like civilians.</i>
- Romania’s elite… <i>Like parishioners.</i> I'm there with the head
of the Notaries Society, Ioan Aurel Pop, Noica, all of high society. - You only get in if you’re in the elite.<i>
- That rules me out!</i> Or if you’ve done things for the
Church that distinguish you. We later unearthed TV footage attesting
to Neacșu's own good deeds. In the village of Muntenii de Sus,
which is over 300 years old, a church was built with the support of Lazăr Neacșu, a man
devoted to his birthplace. Neacșu has long been
close to the Patriarch. Five years ago, he rose to the highest
office a layman can reach in the Church: Member of the National Church Assembly, a kind of parliament presided over
by the Patriarch that sits annually. Neacșu was parachuted into
politics by the Church. He told us he'd joined the PSD
at the urging of Patriarch Daniel, who is nicknamed the "Great White”
within his network of influence. I’m a businessman,
things were slack in 2016. - I wasn't a politician originally.<i>
- Okay...</i> I was a member of the National Assembly. I asked the Great White which party
I should join to become a councillor. "Join the PSD, it'll win by a landslide!" - And it did, didn't it?<i>
- Seriously?</i> Of course. He was in the Securitate. He knows more than anyone, like the Pope. In the 2016 local elections, Neacșu became
a PSD councillor in Bucharest. For the Church, a man in a
position like that is a godsend. Bucharest City Council has the biggest
budget of any Romanian local authority and votes on all funding requests
from churches in the city. Neacșu votes in the Church’s favour
and lobbies other councillors to vote grants through. 2016-2020 was a busy time for him. When Gabriela Firea was mayor,
the council gave the Church funding totalling nearly RON 200 million for the cathedral and churches
across the city. No one knows what the Church
does with this money. To find out, we had to go higher up
in the network, with Neacșu’s help. After we'd said we could secure EU funds for
renovations of "historic monument" churches, he introduced us to members
of the Patriarch’s inner circle. Have you got access to EU funds? <i>Yes, more than access.</i> I’ll take you to the Archdiocese
and talk to the EU funds boss. He'll tell you which churches
are monuments. You can start on them directly. Plus they’ve got church halls,
parish houses, priests’ houses… <i>We can do the designs...</i> A few days later, we meet Neacșu outside the Chancery
of the Church's Holy Synod. - Didn't you see me here?<i>
- I wanted to have a word first.</i> <i>Hi!</i> - I'll shut this...<i>
- Should I kiss their hands?</i> - We never do that.<i>
- I'm being serious.</i> - No, just say hello.<i>
- So I won't bother with...</i> <i>Hello!</i> - I'm Father Aurel Mihai.<i>
- Hello! Gabi Petrescu.</i> - Gabi?<i>
- Petrescu.</i> Petrescu... Have a seat. You’re beside the Great White… <i>The Great White? Is that what you call him?</i> Can you come here? For European [funds]… Aurel Mihai is the suffragan bishop
of the Archdiocese of Bucharest and one of the Patriarch’s deputies. He liaises between the Patriarch
and public institutions. We're dealing here with one of the
most powerful men in the Church. <i>You tell me what you do
and I’ll tell you what I do.</i> <i>It's crowded in here.
Let’s get to know each other.</i> My role is to deal with authorities. <i>I see.</i> The council, councils. Suffragan Bishop Mihai seems very
interested in getting EU funds but insists that churches won't contribute. This is to get around the law
and avoid co-financing. Can these funds be accessed without us involving
the parish financially? <i>Let me ask my superiors about that.</i> I was saying maybe we should settle
a payment notice. Yes, the co-financing. You can't. - But parishes can't, Vali.
- But you can't... - His project's worth a million euros!
- But co-financing's mandatory… Going and talking to the council later,
that's another matter. The message coming from the room is clear: the Church can only receive
money, not spend it. Lazăr Neacșu immediately boasts that
he can arrange public co-financing. I’ll sort out the co-financing,
or you two will, with funds from the district council or the city council or Opaschi
[Secretary of State for Faiths]. So we've got three funding sources. Now you’ve got a man you can
rely on to do something. And I can get 20%
from the district councils. If I go to Piedone, I can sort out 20%. With the co-financing issue resolved,
Aurel Mihai stresses an important point: no Church deal can be sealed
without an all-important blessing. After the next meeting, we’ll draw up
a document informing His Beatitude. And if we hold this meeting and get
his approval, we'll be fine... If our Patriarch's a very good manager,
people'll say he only cares about money. What's he supposed to do?
Hold services so money falls from heaven? No, he makes do with what he's got. The meeting ends on an optimistic note but with a reminder that
the Patriarch has the final say. - We'll get the blessing and meet...
- We'll draw up a document. <i>- So the blessing's the priority.</i>
- It is for us. Before leaving, we fix up another meeting to decide how the EU funds
will be divvied up. A FEW WEEKS LATER A few weeks later, we hire
a flash set of wheels because we’re off to Patriarchate Hill and we need to look like
big-league businessmen. Outside, we're met by
Lazăr Neacșu, our contact. - I funded this consolidation recently.<i>
- What, this?</i> When I was on the Culture Committee. He means the Culture Committee
at City Hall, which approves funding for churches and
was chaired by him from 2016 to 2020. He says all the recent renovations here were funded with public money he secured. <i>- It's nice here.</i>
- Yes, I did it two years ago. I added this lift too. <i>- Hello!</i>
- Welcome! <i>- Thank you!</i>
- Come in! The engineer's the coordinating advisor in the
Monuments and Church Buildings Division… With the introductions over,
we try to find out how the Church spends public money. Mircea Podoleanu, the Patriarch’s
coordinating advisor, explains. <i>This is what I’d like to know.
I’ll cut to the chase.</i> We're only talking in principle anyway,
please speak your mind. <i>Okay. How does it work when
the Church hires a contractor?</i> <i>Is it like state procurement?
Don't you publish in SICAP or...</i> No, we don’t publish in SICAP. If the value's over 100,000, for works,
there's a tender process. <i>Okay.</i> A specification is drawn up with measurements,
eligibility requirements, all the… A notice is put in the newspaper, Lumina. It has the biggest circulation
of any paper in Romania. The Patriarch's advisor is saying that the Church doesn't use the
state procurement system. It does everything in house
under its own rules. This gives it a very free hand,
and our sources told us that Church tender processes
are always won by the intended winner. So we venture to ask the key question. <i>How can we be sure we'll win
a tender process or two?</i> <i>Because we're not running a charity here.</i> - For consultancy?<i>
- Yes.</i> Well, it works like this. You bring us a package, okay? When we get His Beatitude’s approval, that’s worth more than any guarantee
in Strasbourg, so don't worry. <i>- Okay.</i>
- You see? <i>Also, because I’m guilty
of the sin of gluttony too,</i> <i>I'd like to ask: if we get the go-ahead,</i> <i>can we also take on part of the works as
subcontractors or intermediaries? Or...</i> Bring your portfolio showing you’re
up to the job and name the firms…. <i>- Yes, I'm not talking SRL-Ds…</i>
- Come to Mr Podoleanu. He'll take it from there. He'll tell the Patriarch about you,
you'll get the blessing and then there won't be any changes. As the meeting ends, Neacșu
tells the Church figures why it's a good idea to accept
the terms just outlined: because, as we told him, we're
a politically connected firm that gets hold of money and then asks
to keep a cut, in time-honoured fashion. If you sign a consultancy contract with him,
the money's guaranteed. Like with the PDL and PSD firms. The contracts are guaranteed…
which makes sense. The Church figures seem familiar with this
set-up and are itching to get going. Before we leave, Aurel Mihai
stresses one last point to us. To get things going, we'll have
to keep on at them a bit because the system's a bit slow. <i>Okay.</i> We've got to say: there's money
up for grabs here, let's get it. <i>Are they reluctant, or what?</i> It's not that. Well, because of
those past experiences. Also, the faster we move, the sooner
His Beatitude gives his blessing, let's beat the councils to it. We leave in shock after two hours of talks with two highly influential men
in the Patriarch’s entourage about rigging EU-funded tender processes. Outside, what we heard is confirmed. Lazăr Neacșu catches up with us and explains
how the Church rigs tender processes. Let me explain... Lumina's a newspaper,
it's their procurement system. <i>So you need to know when to buy it.</i> Only one paper comes out a day
and no one buys it. You need to submit a list, A to Z. You say: "I want these firms to
do the work for you." We give them to Podoleanu.
He publishes and okays them. <i>How can I be sure no one
else will buy the paper…?</i> No, you don't get it. The specification goes to the firms named
by you or me, I'll name a couple too. <i>- If I go to a newsstand and buy Lumina…</i>
- It's not on general sale! It only comes out in churches.
Don’t you get it? You see? <i>- I’m getting funny looks for smoking.</i>
- Take no notice. Lumina's not on general sale,
it's only in churches. You see? <i>And who goes to church
to make money? No one.</i> - What'll some old biddy do with that rag?<i>
- If she sees a tender notice…</i> It’s no use to her. You misunderstood… <i>- That’s what was worrying me…</i>
- I'll explain. You name 20 firms and say: I want them
to work, I’ll finance them for you. Job done! <i>- Whoa! That's fantastic!</i>
- Yes! A state within a state. <i>- Great!</i>
- You see? We soon learn that the Church is
unwilling to rig tender processes solely in favour of our chosen firms. It has its own stable of firms that
we'll have to share the cash with. The day after the meeting at Patriarchate Hill,
we get a missed call from Aurel Mihai. - Hello, Father!<i>
- Oh, Gabriel, may God give you health!</i> <i>I was just thinking of you.</i> <i>We're already working on that document
to officialise the marriage.</i> - Yes.<i>
- I've talked to a builder friend of mine</i> <i>and he'd like to meet you.</i> - We can meet for a coffee.<i>
- About the same matter.</i> <i>- Can I give him your number?</i>
- By all means! <i>- He's young, like you, educated, discreet...</i>
- By all means! Give him my number and I'll gladly
have a coffee with him. <i>Fine. He has some goals that he… Yes?
So that things go well.</i> - Yes. Great. Okay.<i>
- God bless!</i> All the best! So for things to go well, we must
work with the Church's firms. We've reached the third
level of the network through which the Church draws
in and shares out public money. <i>- Hello! Gabriel Petrescu?</i>
- Petrescu, yes. Who's this? <i>- Marian Iorga. Bishop Aurel Mihai gave me your number.</i>
- Oh, hello! Yes, he mentioned you.
So we’re due to have a coffee. <i>- When you're free...</i>
- How about tomorrow morning? <i>- Nine's perfect.</i>
- Yes? Great. Thanks. See you then! <i>- Thanks. Bye!</i>
- Bye! THE NEXT DAY - Hi!<i>
- Morning!</i> We meet Iorga at his Bucharest office. <i>Some water. I'm thirsty...</i> - Still? Coffee?<i>
- Still. And a coffee.</i> <i>What's this? St Elijah, main façade.</i> <i>Is that going to be done?
For a priest?</i> We've just designed it. And I’m repairing a centre.
I submitted a tender today. Repairs... A project worth nearly EUR 1 million
and repairs at a centre. But the project worth EUR 1 million
is small beer in this office. These files are unfunded projects. <i>- Are these churches?</i>
- Yes, each one's a contract. <i>- Holy moly! They're all contracts?</i>
- Yeah, mate... <i>How long have you worked
with these guys? Wow.</i> These haven’t gone ahead. - The finished jobs aren't here…<i>
- Right.</i> So these are contracts
for church restorations that Iorga got before funding
was in place for them. <i>These are councils you’ve
already talked to?</i> <i>Why doesn’t the Monuments Authority give them
any more? Or district councils...</i> I submit everywhere,
at district council halls and the Monuments Authority… <i>So you do the legwork, not the priests.</i> What could a priest do? Seriously? You see? I go and submit them everywhere. Wherever I get money, I work. As a businessman, Iorga has no
authority to submit documentation to councils and request public funding. But he does this on parishes' behalf
because he's more than a contractor. He's a lynchpin in the network
through which the Church wangles money from councils. Beneath this level made up of businessmen are rank-and-file priests whose only role
is to keep their heads bowed and take orders from above. While we're in Iorga’s office,
he sees a priest who's awaiting funding for the
restoration of his church. <i>- The priest's here.</i>
- Send him in. - In you come.<i>
- Hello!</i> - Christ is risen!<i>
- He is risen indeed!</i> I’m here as promised. At one o’clock. - Actually, I’m late, sorry. Four minutes.<i>
- That's okay.</i> Father, I’ve been as much as
four days late… Have a seat. I forgive you now. - The priest from Oțetari with the monument...<i>
- Ah, okay. Hello.</i> Yes, a monument dating to 1600. There’s an area behind the Intercontinental.
We want to do it. <i>Okay. If it’s a monument, great.
Do you want green energy?</i> <i>- To get off that smelly old gas?</i>
- Why not? <i>- Yes?</i>
- Yes. - You can put it here.<i>
- Has the council money come through?</i> - Yes.<i>
- Already?</i> - Yes.<i>
- Roughly how much?</i> I don't know. - About 700,000.<i>
- That’s not much.</i> For now. Although his parish has
received council funding, the priest from Oțetari is looking
to Iorga for financing. Minutes later, the businessman gets off
the phone and gives him good news. - You might get more money from District 2.
- Yes? They don’t want to give any to other churches.
Only centres and monuments. The council phoned me, they want
to redistribute the rest of the money to centres and monuments, but... <i>- In Mihaiu’s district?</i>
- Yes. But on Friday, when I talked to
the bishop and the city manager, he said it was okay with the bishop. I said if it’s okay with the bishop,
can we put in a couple? He said we'd talk on Monday. - But now it’s not okay with the bishop.<i>
- Aurel?</i> Money sometimes comes
to the less well off! To understand how priests come to be under
the thumb of construction firm bosses, let's look at how churches
receive public money. To get a grant, a church must
submit a file of documents to the authorities to show
it needs repairs. It must pay construction experts to carry out
surveys and draw up a renovation proposal. But because the Church's policy
is not to spend its own money, its chosen firms are called
in at this initial stage. They draw up a proposal
and recoup their costs later. Then the tender process takes place
as explained by Lazăr Neacșu: a notice in Lumina is read by the
intended winner, who gets the job – usually the firm that wrote the proposal. The priest confirms that
this is how it works. A project proposal is drawn up.
It goes off to be approved. They check and okay it. Then the proposal's used for a tender
process with a quote. <i>And it's won by whoever
did the proposal...</i> Yes, but it has to be okay
because they use a program… We've had cock-ups in the past. <i>- You didn't get what you said…</i>
- Yes. <i>That's what I asked at the Archdiocese:</i> <i>how can we be sure of winning
if we get hold of the money?</i> <i>Because we’re laying out the cash.</i> Of course you’ll win.
That’s natural, right? I think… If it was up to me, I’d say:
“Why don’t you just let the work start?” We faff around so much... “The guy’s okay. Let him get on with
the work. He’s got the cash…” Because otherwise you don’t
get anything done… Give you a proposal? The church can’t
do that, it’s a specialist thing and it can't afford to contract it out. “Hey, Father, pay EUR 10,000.”
How can he? - I mean, realistically…<i>
- Yes.</i> You can only get it from a builder who
covers the costs so priests don't have to. Usually, like I said,
when I start on a job, I do it from scratch and cover
the costs till it's funded. When it’s funded, I tell the priest:
the proposal was EUR 10,000, the proposal must be paid for.
The funding covers it. <i>Yes, not the poor box.</i> But I don’t influence the job. If the job's
EUR 100k and the proposal's EUR 10k, the work has to be EUR 90k. <i>Yes, so there's no overlap.</i> So it equals what you’re given… And, again, local councils
can’t fund the proposal. I include the proposal in the
price of the job, you see? <i>- So it wasn’t a waste of time.</i>
- Yes. Because the designer will want payment. Iorga talks as if this is all above board,
but in fact, it’s a conflict of interest. The proposal explaining
why the work is needed is drawn up by the firm
that will do the work. Iorga then pays for it out of the public
funds allocated for the work. This suggests the construction firm's boss
is free to decide his costs and profit. This is a perk of working with the Church, the only entity that receives public money without any direct state oversight. Iorga opens the cupboard again. I'll show you an example. Let’s take one of these. Cașin. Have you worked at Cașin too? No, we've no funding there yet. What'll you do there? Repairs for RON 2 million. 10 plus 5. 15%. <i>That’s your profit.</i> In theory, profit's 5%,
indirect costs are 10%. But you’ll never spend 10%
on indirect costs. <i>I see, okay.</i> To understand the terms used by Iorga, let’s take the example
of a church renovation. Direct costs are all the actual
costs of the work, from materials to labour. The firm's profit is 5%
of the total direct costs. But 10% of the direct costs is set aside for costs not directly
related to the work. These can be admin costs,
accounting and other services supporting the firm's activity
and not the work per se. These are indirect costs,
and as Iorga himself admits, they can never reach 10%
of the cost of the work. <i>- You play around with indirect costs.</i>
- You have to know... Lately, we’ve been doing 10 for
indirect costs and 10 for profit. <i>Uh-huh, okay.</i> And your total net profit's 15%. <i>- After the actual costs?</i>
- Yes. But there's also a hidden profit. Builders play around with not only
their profit and indirect costs, but also the prices of materials and labour
to push up the total job price. Chiajna Monastery is one of
hundreds of renovation jobs funded with council money
in Bucharest in recent years. The contract was won in 2018 by
Solid System Solutions, one of Iorga’s firms. We obtained documents stating
the costs of this work and checked them with experts in the quote calculation software used by
most Romanian builders, including Iorga. Every process has a code, and when it's entered, the average
market price is shown. We compared these averages with Iorga's
quotes for Chiajna Monastery and found that his firm massively
inflated the costs. While we can't comment on materials
without knowing their quality, there's no doubt that Iorga charged way
above the market prices for labour. For example, for cutting through welded
steel plumbing pipes with a hand saw, his firm quoted a labour price
of RON 32 per unit, whereas the software gives a price of
just RON 3.60 – nearly 10 times less. As for decorative plastering,
his firm plastered 320 square metres at a labour
cost of over RON 9,000, or RON 28 per square metre. It used an old code that's
becoming obsolete, but experts told us that three years ago,
when the work was done, the cost of this work could not have
exceeded RON 15 per square metre. And here’s a simple final example:
painting with washable paint. Iorga quoted a labour price of RON 5,700 for
225 square metres at Chiajna Monastery. That’s nearly four times the market price. To get a better idea, imagine a workman
bills you over RON 5,000 for going over the walls and ceiling
of your three-room flat with a roller. If that seems outrageous, you've
already paid prices like these because Iorga's invoices were
paid with public money. <i>- Are these churches?</i>
- Yes, each one's a contract. Iorga, a preferred supplier of the Church,
has won dozens of contracts for council-funded church renovations
in Bucharest in recent years. These haven’t gone ahead. The finished jobs aren't here...
These haven't gone ahead. But Iorga isn't the Church's
only preferred supplier. Other favoured firms have also
landed renovation contracts. To find out how much public money is spent
on church construction and renovation, we asked Bucharest City Council, district
councils and the State Secretariat for Faiths for details of grants to Bucharest churches
since Patriarch Daniel took office in 2008. The whole amount – RON 1.3 billion –
was taken in taxes from the public and given to the Church. Not one penny of this mountain
of money was spent without the blessing of the Patriarch,
who approved every job. After three months of talking
to Church figures and finding out how these
huge sums are shared out, we suddenly broke off contact. We lay low for a few weeks and then made contact again
under our real identity. First, we met Mr Iorga, who'd just
splashed out on a new motor. - Good morning, Mr Iorga.
- Good morning. My name’s Ilie, we’ve met before. We’re making a documentary about
how the Church spends public money. That’s why we met before. We want to ask about the inflated
prices in your firms’ quotes for district councils and the city council. Is this an interview? We're trying to find out where
the surplus cash goes… Please email any questions to me. The prices aren’t inflated at all.
They’re real prices, market prices. But they depend on the brief. There's one price for plaster like this,
and other prices for other kinds of plaster. We asked other firms for quotes. Your prices are up to 10 times higher.
For Chiajna Monastery, for example. Email your questions to me
and I’ll answer them, no problem. But what are you, a journalist? <i>In what capacity do you submit
documentation for the Church?</i> <i>We have a recording of you…</i> We don’t do that on the Church's behalf.
We submit tenders… <i>No, you submit it to authorities.
At District 2 Council Hall. Instead of priests.</i> Never. <i>- You say that in a recording…</i>
- I never go to District 2 Hall or the council. - You might get more money from District 2.
- Yes? I submit at district council halls,
the Monuments Authority... <i>So you do the legwork, not the priests.</i> What could a priest do? I go and submit them everywhere.
Wherever I get money, I work. <i>- Do you have a special relationship with the Church?</i>
- No. For me, in general, it's business. It's a client. If I can work
for it, fine. If not, okay. If I have a contract with it, I don’t
care where its money comes from. <i>How do you get so many
contracts from churches?</i> Through Lumina, of course. All Church tender processes
are announced in it. You can’t find them anywhere else. <i>If I go to a newsstand and buy Lumina…</i> It's not on general sale! It only comes out
in churches. Don’t you get it? The next person we tried to
confront was Lazăr Neacșu, who'd told us in detail how Church
tender processes are rigged. As council meetings were being
held online, we went to his home. He didn’t answer.
The network was on its guard. He later drove off in a luxury car
and wouldn't stop. We got hold of him on the phone. Hello, Mr Neacșu. I'm Victor Ilie,
a reporter with Recorder. <i>How are you, Mr Gabriel Petrescu
with the EU funds?</i> <i>- Didn’t you meet me as an EU funds expert?</i>
- Yes. <i>- Mr Petrescu, I got your message.</i>
- Yes, but my real name's Victor Ilie. <i>- Mr Petrescu…</i>
- Yes, go ahead. <i>- I’m at City Hall, come here if you want.</i>
- Okay. <i>- Come here, yes.</i>
- We'll be right there. - Are you at City Hall?<i>
- Never you mind where I am.</i> We’re at City Hall. <i>I’m in EU Funds with Mr Gabriel Petrescu.</i> <i>- Any questions, talk to Mr…</i>
- This is a kind of research. It's the only way we could research
matters of public interest. <i>I don’t care about those.</i> <i>I’m an honest man who saw you…</i> <i>We met officially at City Hall, you said
you handled EU funds. Was that all?</i> When I was Mr Petrescu, you told me how
tendering's rigged through Lumina. <i>Nothing's rigged, that has nothing to
do with me, I’m not interested.</i> I'll rephrase this. Aren’t you
in a conflict of interest… He's gone. Our final showdown was with Aurel Mihai.
We met him after a service. - Hello, Father.
- God bless you! I'm Victor Ilie, a reporter from Recorder.
I talked to you before as Gabriel Petrescu. Why? We’re making a video documentary about
how the Church spends public funds and we're investigating your role in this. But this is a church. I know, we met in church on
the previous occasions too… Especially because you've been unfair
to me and a lot of people. You used the name Petrescu.
I'm sorry. Yes, it was the only way we could find out how the Orthodox Church
spends public funds. And we’ve got recordings
of you saying we could rig tender processes for public funds. I can’t say something like that. - Shall we listen to what you said?
- Yes, if you like. Let me explain.
Firstly, it’s not part of my job. You bring us a package, okay? When we get His Beatitude’s approval, that’s worth more than any guarantee
in Strasbourg, so don't worry. <i>Okay.</i> So I didn’t do... I wasn't involved. And I’m sorry, I was expecting
you to show more… I don't know... ...moral integrity. May I go? <i>Are you friends with Marian Iorga?</i> - Pardon?<i>
- Are you friends?</i> No. We’re acquainted,
but we’re not friends. <i>I've talked to a builder friend of mine</i> <i>and he'd like to meet you.</i> Gladly. <i>He has some goals that he… Yes?
So that things go well.</i> Yes. To be honest, we call everyone friends. In the biblical sense of the word. The fact that he attends
some church events, when there are processions
and whatnot, I think this shows… I’m just saying, a… Lazăr Neacșu says Mr Iorga's
quite simply your crony. Oh, yes, sure. Yes? Yes? A few months earlier, the bishop
had been far less humble. At our final undercover meeting, we had
worked out how to access money and he'd assured us that if we got
through all the Church’s filters, we'd join a blessed system
that always comes out on top. JUNE 2021 <i>What's the feedback?</i> I spoke to His Beatitude.
He has no objections. The problem is... the advisor in charge of
monuments and church buildings. <i>- Was he at the meeting too?</i>
- Yes, the older one. He's not clear on the situation…
who we make the funding request to, who manages the money,
who authorises payments… <i>- So I should explain the legal workings to him.</i>
- Exactly. <i>I see. So that’s what he needs now
for things to go without a hitch. Okay.</i> <i>Iorga also said we’ll need some
kind of accreditation, a kind of…</i> <i>To sign a contract with any church,
we need approval, accreditation…</i> <i>- It’s not clear to me, if you can explain…</i>
- I think you need the blessing. <i>So that's what it is.
Okay, now it's clearer to me...</i> To be honest, it’s not easy
to get into our system, but then you’ll have a very protective hat,
you won’t get rained on… It's quite reliable. And everything
goes to the boss. Yes? <i>All of the questions and official requests
we sent to the Romanian Orthodox Church</i> <i>before and after this investigation ended</i> <i>hit a wall of silence.</i> AN INVESTIGATION BY
Victor Ilie EDITORS
Mihai Voinea & Cristian Delcea GRAPHICS
Ionuț Duinea
ARTWORK
Mircea Drăgoi CAMERA
David Muntean & Cristian Delcea THANKS TO
Valeriu Nicolae
EU Funding Expert THANKS TO
Ovidiu Vanghele THANKS TO
Luiza Vasiliu This documentary could not have been made
without donations from Recorder's viewers www.recorder.ro/sustine ENGLISH SUBTITLES
Peter Shortall & Florin Ular