Police investigate collapse of Irish f irm in Romania

A MULTIMILLION euro recycling firm owned by two Irish brothers has collapsed in Romania, sparking a police investigation there after Irish investors lodged a criminal complaint with the authorities.

However, one of the owners of Green Waste Management SRL has dismissed the complaint. The €4m recycling centre in the Romanian town of Orastie was set up by Francis and Oliver O’Reilly from Oldcastle, Co. Meath, in 2011. After 18 months it went into liquidation leaving over €1.5m of debts.

Employing more than 100 people – including prison labourers – the company won several contracts to sort recyclable waste. It stopped trading in April 2013, but trucks continued to deposit waste in the company’s yard.

The closure left a number of employees and contractors unpaid and mounting waste at the site became a contentious local issue. The official list of court- approved creditors shows the company left 97 creditors out of pocket to the tune of a combined €1.5m.

But some investors – including a leading Irish investment firm and a prominent Irish millionaire – have claimed in a Criminal complaint to police that their investments have not been recognised.

The MoS has obtained a letter, dated May 13, in which chief prosecutor Velescu Adina said an ongoing criminal investigation was ‘pending finalisation’

Relatively unknown in Ireland, the O’Reillys have been prominent developers

Romania since 2004. Their Irish construction firm, ORJ Construction Ltd, went into liquidation in 2012.

Francis O’Reilly told the MoS that he knew of the complaint, adding: ‘It will be dealt with legally.’ In subsequent emails, Mr O’Reilly said the complaint was found to be without justification. ‘We have been informed by Police that there is insufficient evidence for further police action,’ he said.

Separately, another Irish investor challenging the liquidation in court in Romania claims to have lost as much as €2m.