Identifier
Created
Classification
Origin
06BUCHAREST359
2006-03-01 15:40:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Bucharest
Cable title:  

TRANSYLVANIA REGIONAL GOVERNMENT, FOURTH QUARTER

Tags:  PGOV PREL PHUM ECON EINV SOCI RO 
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DE RUEHBM #0359/01 0601540
ZNR UUUUU ZZH
R 011540Z MAR 06
FM AMEMBASSY BUCHAREST
TO RUEHC/SECSTATE WASHDC 3823
INFO RUEHSF/AMEMBASSY SOFIA 4705
RUEHUP/AMEMBASSY BUDAPEST 1023
RUEHCH/AMEMBASSY CHISINAU 1102
RUEKJCS/SECDEF WASHDC
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UNCLAS BUCHAREST 000359 

SIPDIS

SENSITIVE
SIPDIS

STATE DEPT FOR EUR/NCE - WILLIAM SILKWORTH

E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON EINV SOCI RO

SUBJECT: TRANSYLVANIA REGIONAL GOVERNMENT, FOURTH QUARTER
2005


UNCLAS BUCHAREST 000359

SIPDIS

SENSITIVE
SIPDIS

STATE DEPT FOR EUR/NCE - WILLIAM SILKWORTH

E.O. 12958: N/A
TAGS: PGOV PREL PHUM ECON EINV SOCI RO

SUBJECT: TRANSYLVANIA REGIONAL GOVERNMENT, FOURTH QUARTER
2005



1. (U) Summary: This cable summarizes recent newsworthy
regional and local controversies in the last quarter of

2005. Common themes during this period included local
government corruption and stormy relations between members
of the governing alliance at the local level, sometimes
counterbalanced by instances of good cooperation and
progressive management. End summary.

SKIRMISH IN BIHOR COUNTY
--------------

2. (SBU) Bihor County Prefect Ilie Bolojan, a National
Liberal Party (PNL) activist, has twice blocked contracts
undertaken by the city of Oradea - to the chagrin of
Oradea's Democratic Party (PD) Mayor Petru Filip. If this
happens a third time, the current Oradea city government
will be automatically dissolved, provoking new city
elections. Bolojan has opposed the actions of Filip and the
city council in two key development areas: the renovation of
the city transportation system (specifically the purchase of
second-hand trams from Berlin) and the development of an
ecologic city waste disposal and treatment center, on the
grounds that the vendors selected were too expensive.
Bolojan's actions, which many analysts characterize as anti-
modernization and contrary to the public interest, inspired
one newspaper to nickname him the "the Funar of Bihor" (a
reference to Cluj's former extreme nationalist Mayor
Gheorghe Funar). Tensions in Bihor have become so high that
Vasile Blaga, Minister for Administration and the Interior,
stepped in at the end of November to rebuke the prefect for
overstepping his authority, and, possibly, to urge the mayor
to reconsider his policies. (Note: Bolojan was a surprise
dark horse selection for Prefect, with one news story
alleging that he owed his appointment to the support of Ioan
and Viorel Micula, the owners of powerful Bihor-based
bottler European Drinks.)


3. (SBU) Bihor's city vs. county conflicts are not limited
to Bolojan and Filip but include a struggle between Bihor
County Council and local municipalities for military land

and buildings available for local use as a result of Defense
Ministry (MOD) restructuring. County Council President Kiss
Alexandru is determined to use the land for low-cost
housing, having promised to construct 4,000 houses (for
which 8,500 residents of Oradea applied). Kiss had promised
to construct 24-story skyscrapers, -- which would be the
tallest buildings in Romania -- on former MOD land near the
airport. This project came to naught following the
"discovery" that the buildings would have obstructed flight
paths near the airport!

SIBIU'S MAYOR SCUFFLES WITH PSD - AND WINS
--------------

4. (U) Widely popular ethnic German Sibiu Mayor Claus
Johannes recently successfully insisted on the resignation
of a Social Democratic Party (PSD) vice mayor, who, despite
PSD protest, stepped down and was replaced by a PD mayor.
Johannes was reportedly furious that PSD President Mircea
Geoana did not call on City Hall during a visit last year to
Sibiu. Johannes ranks among Romania's most popular mayors:
he won a second term in 2004 with 88.7 percent of the vote,
despite the fact that Germans account for only 1.6 percent
of Sibiu's population. Indeed, national daily "Evenimentul
Zilei" dubbed him Romania's best mayor in September 2005.
His recent accomplishments include winning Sibiu the title
of "Cultural Capital of Europe" for 2007 (a major old town
facelift is underway) and in attracting major European
investments, such as 138 million Euro bio-diesel project.

CLUJ MAYOR'S GODSON BECOMES CLUJ PREFECT
--------------

5. (SBU) The surprise selection of Cluj Prefect Mihail
Hardau as Minister of Education in early November 2005
opened the position of Prefect of Cluj County. Local
speculation focused on two rising PD members: MP Daniel
Buda, PD President and Cluj Mayor Emil Boc's selection for
president of the local PD party organization in October; and
Alin Tise, member of the local city council and Boc's godson
-- the mayor served as Tise's "godfather" at his wedding in

2004. The "winner," Alin Tise, made his mark in the city
council as head of the commission to sell city-owned
commercial property, where he managed to garner market rates
for property, reversing the trend under Funar. A lawyer by
profession, Tise is 31 and listed over one million dollars
in property, stocks and other assets on his financial

declaration.


6. (SBU) Tise has hit the ground running. In his first
weeks in office he promised faster passport services, reform
of the office that issues driver's licenses, asked for
reports from all departments, and then criticized the
quality of their response. Despite this blitz of activity,
Tise told the OIC at the city National Day reception he did
not enjoy the job, and might quit.

THE SICK STATE OF ZALAU'S HOSPITAL
--------------

7. (SBU) The revelation last November of sweetheart
contracts with suppliers who charged the government-run
hospital in Zalau far above market rates for food and basic
supplies, such as soap and toilet paper, resulted in the
resignation of the hospital's chief accountant and
administrative director. Within a few days Gheorghe
Stanciu, a PD member of the county council, was removed from
the council by order of the Prefect for fulfilling functions
incompatible with council membership. Apparently, he was
not only sitting on the administrative board of the county
hospital, but held hospital service contracts in his
capacity as administrator of a local refrigeration company.
Meanwhile a nurse employed by the hospital informed the OIC
that medical personnel have not been paid for the past
month. Local residents point to the scandal at Zalau
hospital as emblematic of Romania's wider health care
crisis.

MY WAY OR THE HIGHWAY FOR NORTHERN COUNTIES
--------------

8. (U) Faced with the fact that no internal highway
development plan touches their northern counties, the
authorities in Maramures and Satu Mare Counties have come up
with a novel plan: an expressway through Satu Mare to Baia
Mare that will connect with the M3 highway in Hungary.
Thanks to good cooperation with neighboring counties in
Hungary, the local authorities managed to get the proposal
on the agenda of the joint Hungarian-Romanian meeting in
Bucharest this fall, and have the support of both prime
ministers. Funding will come from the European Regional
Development Fund, to which Romania will have access after
joining the European Union. Construction is currently
planned between 2007 and 2010. The total length of the
expressway is estimated at 135 kilometers, 60 in Hungary, 40
in Satu Mare and 35 in Maramures. The estimated cost of the
project is 580 million euros. The director general of the
Agency for North-West Development sees the first benefits of
the new route coming in the form of increased tourism, but
it will also benefit commercial traffic in the area.

Taubman