EXCLUSIVE: How the National Agency for Cadastre lost 200 million euros on a rural property registration project / Despite this, hundreds of project team members received monthly bonuses of 1,000 euros for five years / Prime Minister Ciolacu has dispatched Control Body
The National Agency for Cadastre and Land Registration (ANCPI) utilized only €116.7 million of the €312.8 million in European funds allocated by December 31, 2023, for integrating multiple rural properties in Romania into a unified cadastre and land book system. This project is critical for property records in Romania, particularly for rural property owners and the agricultural business sector.
UPDATE: Following the investigation’s revelations, Prime Minister Marcel Ciolacu has decided to send the Prime Minister’s Inspection Team to ANCPI (managed by PNL) to probe the reported irregularities and reasons behind the €200 million shortfall. The project, which has spanned nearly a decade, is now seeking additional funding from another European project to continue operations. The Agency has attributed the failure to achieve its goals to several bureaucratic issues, including disruptions caused by the COVID-19 pandemic.
„Stupidity, ignorance, lack of political will, very poor management, and derision from county office inspectors,” are some of the reasons cited by a private sector cadastral player who received contracts from the Agency during this project. Despite the project’s failure, the management team and county inspectors were paid generous bonuses from the €116.7 million disbursed by the European Commission.
A decade of bureaucracy
Latest updates from G4Media.ro suggest that there is a possibility for the employees who received these bonuses to return them, which has reportedly caused significant unrest within the Agency.
The initial steps for the “Increasing the coverage and inclusion of the property registration system in Romania’s rural areas” project, funded through the 2014-2020 Regional Operational Programme (POR) as part of the National Cadastre and Land Registration Programme (PNCFF), began in 2014 with the creation of preliminary documents such as feasibility studies and cost-benefit analyses.
Early signs of delay emerged during this phase; the documentation underwent multiple revisions by the European Commission, delaying the signing of the financing contract until September 2018, with actual implementation beginning in January 2019.
The total funds allocated for expenses were €312.89 million, consisting of €265.9 million in European funds and €46.9 million in state budget co-financing.
The cadastre of the entire country through the PNCFF was to be supplemented with about €900 million from ANCPI’s own funds and additional co-financing from local administrative units. Through POR European funds, the goal was to register 660 of the 3,181 existing administrative-territorial units in Romania by the deadline of December 31, 2023.
The importance of property registration
„A property owner knows precisely where their land is located and its size, enabling them to legally sell or lease it. Heirs avoid the fees associated with a general cadastre program. Those without proper documentation can finally comply with legal requirements. The state organizes property records and collects taxes from all owners,” explained a cadastral firm representative to G4Media.ro, outlining the key benefits of this project had it been fully realized.
As of mid-March 2024, the status of the European-funded project reveals that only €116.7 million of the allocated €312.8 million has been spent (Source: ANCPI, in a response to G4Media.ro).
In terms of the project’s primary objective, according to a G4Media.ro source within the Agency, only 1.6 million hectares of the targeted 5.7 million hectares have been registered so far. The Agency itself publicly acknowledges that out of the 660 planned administrative-territorial units, only 104 (15.7%) have completed the property registration work.
Despite this, the Agency claims it has contracted cadastral firms to perform work on 96% of the target area. Regrettably, payment for many of these tasks, upon completion, will no longer be possible through the POR project, as the project’s duration expired on December 31, 2023, and the remaining funds are now inaccessible.
The Agency has communicated to G4Media.ro that the project “will continue under the Operational Programme for Smart Growth, Digitalisation, and Financial Instruments 2021-2027 (POCIDIF),” an entirely different initiative, and a representative of a private cadastral firm that collaborated with the Agency on the POR project stated, “The money (nearly €200 million) is lost.”
ANCPI’s explanations for the delays
Donează lunar pentru susținerea proiectului G4Media
Donează suma dorită pentru susținerea proiectului G4Media
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