Unifarm borrowed RON1.75 billion from state-owned Eximbank to buy sanitary equipment to fight the coronavirus pandemic. Unifarm required approvals from its board of directors, general shareholders’ assembly and the health ministry to make acquisitions but spent nearly RON1.5 billion unauthorized between mid-March and mid-May, auditors found.
Unifarm’s management bought ventilators at $56,000 a piece while the same equipment was selling for $7,000 – $10,000 during that period. The report also notes Unifarm sold the face masks it bought during the state of emergency to the health ministry (which distributed them to hospitals) at a mark-up of 71% compared with its average 13% mark-up for other customers.
Adrian Ionel, who was Unifarm’s manager during the national state of emergency period in March-May and handled the acquisitions is currently under judicial control. In June he was accused of receiving bribe, abuse of office, accessory to influence peddling, instigation to intellectual forgery and using his position to favor certain individuals.