Moldovan Premier Resigns as Graft Scandal Shakes Country

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(Bloomberg) — Moldova’s prime minister resigned after only eight months, as a corruption scandal ramps up pressure on President Maia Sandu’s administration to push through reforms crucial to the country’s European Union accession bid.

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Alexandru Munteanu, a businessman backed by Sandu’s Action and Solidarity Party who came to office last November, stepped down on Friday, saying he can no longer carry out his duty “in accordance with his principles and convictions.” 

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The upheaval risks undermining progress that the tiny nation wedged between Ukraine and EU member Romania has made on its path to joining the bloc. Just last month, Chisinau was able to begin negotiations as part of that process. 

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Moldova hopes to enter the EU by 2030, an ambition that has made it a target of years of Russian efforts to derail its westward shift.

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The pro-European Sandu in thanking Munteanu for his service pointed to the challenge of securing reforms and said that her expectation had been for faster progress and improved communication with the public. 

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She told reporters in the capital Chisinau on Friday that she will hold talks with political parties on nominating a new prime minister next week. 

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The president’s party has a majority in parliament and should be able to secure backing for a new cabinet swiftly, even as a corruption scandal and claims of nepotism involving a state-owned air-traffic management company impact public sentiment. 

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Moldova has been shaken by a series of allegations that senior executives at MoldATSA obtained their positions using fraudulent credentials and had exceptionally high salaries and benefits. 

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The scandal has escalated into a broader political crisis rekindling concerns over weak oversight within state-owned enterprises, nepotism and corruption. 

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The controversy has also drawn the president into the spotlight, after one of her cousins was linked to the company. Sandu, who hasn’t been personally involved with the company, described the issue as “very serious” and called for wider reviews of state-owned firms. 

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Munteanu hasn’t been personally implicated in the scandal.

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“I accepted the proposal to serve as prime minister with a deep sense of responsibility and the firm conviction that I can help change things for the better,” Munteanu said in a Facebook post. “The moment I understood that I could no longer carry out my duty, I chose to step down.”

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Despite ongoing challenges that include the economic impact of Russia’s war against neighboring Ukraine, energy security concerns and persistent hybrid threats, Moldova has maintained a strong commitment to European integration. EU leaders have repeatedly praised its determination to implement difficult reforms. 

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Sandu said she expects the change in government to lead to some setbacks, but plans to push for faster progress on fiscal, judicial and anti-corruption reforms. 

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(Updates with comments from President Maia Sandu starting from first paragraph, and context throughout.)

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