CHISINAU, Moldova - Tens of thousands of Moldovans took to the streets on May 3 in the Moldovan capital of Chisinau to demand justice for a banking scandal that saw $1 billion vanish from three of the country’s biggest banks. They are calling for some political leaders in the ruling pro-European coalition to step down for their lack of action over the scandal and poor governance.
The participants dispersed peacefully in the central square at midday, chanting slogans such as “Moldova is ours,” “We are Moldova,” and “The thieves must go to jail.”
Moldovans are looking for answers after $1 billion disappeared from three local banks. Banca de Economii, Banca Social and Unibank, issued a total of $1 billion in loans to unidentified recipients, a staggering amount of money that equals about 15 percent of the 2013 gross domestic product of $7.9 billion in a nation of less than four million people.
Prosecutors and American auditors investigated the questionable transactions that took place in November, just a few days before the country’s parliamentary elections, which saw pro-European parties scoring a narrow lead over the pro-Moscow Socialist Party.
The American investigations firm Kroll issued a report early March, but Moldova’s central bank authorities claim the firm does not allow to make the report public. However, details of the report leaked to the press found that Banca de Economii (Savings Bank) issued $600 million in loans to companies backed by Russian banks.
It was noted that the decision to issue the credit was approved by the bank’s Administrative Committee, led by millionaire Ilan Shor, a former shareholder who was accused of selling about a quarter of the bank’s shares to a Russian state-owned company. The central bank took over the struggling Banca de Economii in November, when the Supreme Court of Justice ruled the institution should be returned to the state.
To keep the financial entities afloat and allegedly avoid a potential banking sector collapse, Moldova’s central bank issued a bailout of about 9.5 billion lei ($520 million) from the state emergency funds, according to the local press. If the banks will not manage to repay the bailout, the debt will be eventually be passed onto the country’s sovereign debt and charged to Moldovan taxpayers.
An estimated 40,000 Moldovans took to the streets on May 3 to protest suspected corruption in a $1 billion banking scandal tied to Russian banks.
Fighting for change
The rally, organized by the Civic Platform for Truth and Dignity, gathered a wide cross-section of Moldovans furious about the widespread injustice, political corruption and poverty in the country.
A group of professors, lawyers, economists, political analysts and singers delivered passionate speeches in the front of the crowd estimated at 40,000 people. They called for unity and the resignation of the ruling “bandits” and oligarchs who captured the state and failed to work in the public interest.
Daniel Ulinici, wrapped in a Moldovan flag, was one of the many young people waiving the European Union flag. He said he came out to fight for change because he is deeply disappointed with the current justice system in Moldova.
“I’m debating every day whether I should stay or leave the country,” said Ulinici, 21, a first-year student at the Moldovan Academy of Music, who was volunteering for the Civic Platform for Truth and Dignity at the event. “We need to reform our justice system to make sure that if one has a problem, it will get solved.”
Not very far from Ulinici, a 67-year-old was holding hands with his wife and listening to the speakers. The pensioner said he is closely following the developments in the country and believes it’s important to come out and speak up against the injustices.
“The current and past governments of this country always tried to separate us, based on our ethnicity and language, so that we could not unite and respond to such events,” said Mihai Popa. “But I am an optimist, I think we can achieve change, if we stand united.”
His wife Ecaterina Popa, tight to his hand, echoed his thoughts and said the country can only move forward if people stand together to hold those in power accountable, not only for this particular scandal, but for how they are governing the country in general.
“We are all humiliated,“ said Popa, “I’ve worked all my life and the pensions are miserable, not even enough to pay your bills. Not even mentioning food and medicine.”
The woman worked as a medical assistant for more than 34 years and now earns a pension of 768 lei, which is about $42 a month. The Popas have two sons and one recently left the country for a better pay“He started his own venture and was not able to stay in business because of all the broken laws in this country,” said Mihai Popa.
Alexei Bivol is another young man who started his own business after working abroad for two years. He now produces cooking oil for the local markets. He said he sells a lot less than he used to because the current political leaders allowed the markets to be flooded with cheap products from Ukraine. The 33-year-old said hecame out to the protest to express his frustration against the current government.
“It’s very hard,” said Bivol, who traveled to the protest from the nearby city of Ialoveni. “If I can’t find any other ways to grow the business, I’ll leave.”
