RomTelecom sale in doubt after arrests

1 Dec 2006

The Romanian government’s planned sell-off of its 46% stake in national PTO RomTelecom is up in the air following alleged leaks of confidential documents. Vadim Benyatov, the local head of Credit Suisse bank which is advising the government in the EUR1 billion privatisation, has been arrested. Stamen Stancev, a consultant with Credit Suisse has also been detained, along with two high-ranking government officials. The Times reports that all four have been accused of leaking confidential information to prospective buyers. Credit Suisse says it is cooperating with the investigation, while Stancev has denied any wrongdoing. The Times reports that Romania’s Communications Minister has written to Credit Suisse demanding that they step down from their advisory role.