Irregularities in the management of public funds and conflict of interest at Teleradio-Moldova. How the TRM director comments on the findings of the Court of Accounts
Mihaela Ciobanu
Teleradio-Moldova (TRM) would have carried out certain activities and procedures that were not fully compliant with the applicable regulatory framework, which influenced the processes of budget planning, revenue and expenditure management, and public asset management. The findings are contained in an audit report by the Court of Accounts of the Republic of Moldova (CCRM) on TRM’s financial activity for the years 2023–2024. The document was examined on Friday, November 7. TRM Director General Vlad Țurcanu has several explanations on this subject and says that such findings contribute to the strengthening of the public institution.
The CCRM press release shows that non-compliance was identified in relation to the planning and uneven execution of financial resources, the lack of an integrated financial policy and detailed budgets for media services, deficiencies in accounting and the establishment of commercial service costs, failure to comply with approved budget limits, as well as deviations in the public procurement process and in the management of capital investments. “At the same time, the lack of a complete inventory of immovable property and the failure to update public property lists have generated risks regarding the efficient administration of state assets,” the Court of Accounts states.
The Court of Accounts’ audit mission focused on how public funds and the company’s assets were constituted and used, as well as compliance with the principles of good governance and financial transparency. At the same time, the systemic risks that may affect the financial sustainability and institutional independence of TRM were assessed.
Although the institution states that the full report is yet to be made public, Ziarul de Gardă has published more details on the subject. According to the source, during the period in question, TRM spent approximately 21.5 million lei more than the amount approved by the Supervisory and Development Council (SDC), particularly in the areas of salaries and social contributions.
“The auditors identified a ‘problematic contractual arrangement’ between TRM’s general manager, Vlad Țurcanu, and the SDC. Two representatives of the SDC – president Arcadie Gherasim and secretary Loretta Handrabura – are also listed as employees of the company. ‘This situation has created a potential conflict of interest, resulting in unjustified payment commitments’, ZdG quotes from the Court of Accounts’ report.
“WE ARE NOT TRYING TO FIGHT THE COURT”
TRM Director General Vlad Țurcanu told Media Azi that “all of the Court’s findings help the institution to consolidate and improve its procedures in order to comply with various existing laws – financial, administrative, etc.”
Referring to the Court’s complaint regarding the existence of an internal regulation that provided for additional income for certain categories of employees involved in the production of audiovisual products, Vlad Țurcanu explained: “Indeed, until today we had such a regulation. Why until today? Because, at the suggestion of the Court, we abolished it. The regulation provided for additional income for employees who participated in the creation of audiovisual products within partnership projects. For example, two representatives of the Advertising Department would identify a project, a source of funding for a program. Other TRM employees—journalists, video editors, technicians—would also participate in this program and, according to the regulation in force until recently, would receive certain supplements for the additional work performed.” According to him, the Court of Accounts considered that the distribution of these revenues was not fair. “We are not trying to fight the Court, but we have complied and abolished this regulation, which, in our view, is not illegal. However, we wanted to eliminate any suspicion of a possible inappropriate distribution of the company’s revenues,” added the TRM director.
Regarding the exceeding of the budget approved by the SDC, Vlad Țurcanu claims that a significant part of this amount has a technical cause, related to the revaluation of the institution’s assets: “I can tell you, for example, that 14.5 million lei—expenses above what the SDC approved—result from a technical procedure. TRM requested a revaluation of the assets, of the buildings owned by the institution. Prior to this assessment, the cost of our buildings, as certified by technical measures, was approximately 60 million lei. After the assessment, it was found that the same assets are worth 333 million lei. Thus, the 14.5 million lei come from the increase in the wear and tear of those buildings, which the company could not have anticipated. Accordingly, this year, if we draw up a wear and tear plan, we cannot know for sure to what extent the infrastructure will wear out in order to include that wear and tear in the expenses.”
Regarding the conflict of interest identified by the CCRM, the TRM representative told Media Azi that the situation invoked by the Court does not, in fact, represent a conflict of interest proper, but rather a legal non-compliance generated by legislative ambiguity. The problem arose from the way in which certain administrative acts were signed: “When the president of the SDC, Mr. Arcadie Gherasim, signed my contract in December 2021, there were situations in which I, as general director, signed acts that actually concerned the president of the SDC. This is what the Court is referring to. The Parliament Secretariat has acknowledged that there is such a legal non-compliance and has declined responsibility, considering that it is a matter that needs to be resolved through legislative changes in order to eliminate this conflict of interest.” The TRM director added that the discrepancies found by the Court relate to some omissions at the time the license was granted, which have been identified and need to be corrected.
