Financial Times: “CONSTANTA: A Black Sea contradiction “

Ce au spus altii despre Constanta lui Mazare?

***

CONSTANTA: A Black Sea contradiction

Radu Mazare, the flamboyant young mayor of Constanta on Romania’s Black Sea coast, is one of the country’s most colourful and controversial figures. In 16 years, he has evolved from engineering student to muckraking journalist to media mogul to populist politician.

Still just 37, the deeply popular, cigar-smoking Mr Mazare is in his second term in office and looks to be heading for a third election victory next year. An admirer of Venezuela’s Hugo Chavez, he is deft at populist self-promotion - plastering his own name on new buses and personally handing out packages of food to the elderly and poor six times a year. He has also markedly improved basic city services, upgrading roads, hospitals and schools.

But to his critics, Mr Mazare’s talents have a darker side that is damaging Constanta’s reputation and hurting the ability of Romania’s second largest city to attract investment just when record levels of foreign capital are pouring into the country. Alina Bargaoanu-Vasiliu, an editor for daily newspaper Cuget Liber (Free Thought) points to controversial local taxes, claims of favouritism in city contracting and an investigation by Romania’s national anti-corruption prosecutor into potential misdeeds.

“I think some investors are scared away, ” says Ms Bargaoanu-Vasiliu. Mr Mazare has irritated many businesses with relatively small but controversial levies. One, referred to as the “protection tax “, charges companies based on the area they occupy - about €300 a year for 100 sq m. With the funds - about €500,000 this year, according to Mr Mazare - the city hires private security companies to provide extra policing of public places. Some see no benefit and consider the tax as legalised extortion. Mr Mazare says it is needed to control crime, especially during the high season at Mamaia, a beach resort in north Constanta.

Corruption is a more serious accusation that appears supported by no concrete evidence. In 2004, anti-corruption prosecutors from Bucharest seized two truckloads of documents and say that financial experts are continuing to study the records of city contracts and other files. But they have filed no charges and Mr Mazare appears unconcerned. At a televised press conference, he once told prosecutors and police to “kiss my butt “.

In an interview, the tanned and impeccably well-dressed mayor dismissed the investigation as a politically motivated attack from members of the Democratic party, which forms part of the central government coalition. The Social Democrats, Mr Mazare’s party, are in opposition.

“This is all bullshit, ” he says. “They stayed on me for two-and-a-half years and they didn’t find anything. ” Mr Mazare, who made a moderate fortune from the newspaper and television group he founded in the mid-1990s, estimates his personal wealth at €10m. He insists he has never used his political office to benefit himself or his friends.

He readily takes on the question of why Constanta, despite having 300,000 people and three universities, has failed to attract any significant foreign investment in manufacturing, information technology or shared services - sectors that have flooded other Romanian cities. Because of its massive port facility - one of the 10 busiest in Europe - and its tourism sector, he points out that wages are higher in Constanta than the national average. It is also located in Romania’s extreme south-east, several hundred kilometres farther from Europe’s core markets than cities such as Sibiu, Timisoara and Cluj that are booming in Transylvania. Eugen Sandu, regional head of BRD, part of the Société Générale group, gives a similar assessment, and adds a qualified endorsement of Mr Mazare. “He has done a lot for this town. The streets are clean and well lit. I’m not a fan of the mayor, but I see a difference in Constanta compared with five years ago. ” His bank sees a difference as well. The total loan portfolio of BRD’s 23 branches in the Constanta region grew by 86 per cent in 2006.

The heart of the local economy, however, lies in the port where City Hall has little authority. The port’s landlord and tenants together employ 50,000. According to Mircea Banias, general manager of the state-owned port administrator, the port accounts for an astounding 60 per cent of household income in the county. With Romania in the EU and road and rail links from the port expected to improve markedly over the next several years with the help of EU funds, the port is eyeing plenty of growth. Private and public investments there are expected to reach €220m in the next two to three years.

Much of the growth is centred at a new container terminal built and operated by Dubai Ports World. The terminal handled 870,000 TEU (20-foot equivalent units) last year, making it the largest container facility on the Black Sea. Rowan Bullock, general manager of the DP World terminal that dominates the southern end of the port, says he believes container traffic will expand by 15 to 20 per cent annually for at least the next three years as the economies of south-east Europe consume more goods from Asia. And that is not likely to be discouraged by whoever runs Constanta City Hall.

By Christopher Condon, FT.com site
Published: Mar 02, 2007