Moldova's Public Services Agency wins at Court of Appeal in passport blanks' purchase case: state exempted from payments worth over 100 million lei

The Public Services Agency (ASP) has won the appeal in its litigation with the Bulgarian company OPTIMO IT SOLUTIONS LTD, in the case regarding the purchase of passport blanks. The Court of Appeal rejected the financial claims against ASP, which exceeded 100 million lei for alleged unpaid payments during the period 2020–2021. The decision is irrevocable.

The litigation was triggered by ASP's refusal to continue a contractual scheme considered unprofitable and marked by suspicions of corruption, inherited from previous years. After the change of leadership in 2021, the institution suspended payments considered unjustified and ruled to defend the public interest, even if this led to the initiation of an international arbitration process.

The case concerns several previously signed contracts, whereby the state was obliged to pay 'royalty' fees to private companies for the use of technologies in the production of identity documents. This fee was included in the cost of the service, so that each citizen who got a passport unjustifiably paid about 13 dollars.

‘’The concerned contracts were part of a disadvantageous scheme for the state and citizens. Based on suspicions of abuse of office, corruption and money laundering, in 2021, a criminal case was initiated regarding acts committed during the period 2014–2020, with total financial damages estimated at about 41 million euros, by former decision-makers from the institutions responsible for issuing identity documents,’’ reads the ASP’s press release.

The Public Services Agency emphasizes that the fight against corruption schemes and disadvantageous contracts for the state stays a priority and announces that it will continue to cooperate with investigative bodies, in order to fully elucidate this case. The institution reaffirms its commitment to transparency, integrity and proper management of public resources.