The Novomatic scandal between the slots machine provider and the Romanian National Lottery is investigated by anti-corruption prosecutors and by the Control Body of the Ministry of Finance in Romania. The contract is being analyzed in full detail, being catalogued as an “Unlucky Contract” by Romanian authorities.
The unlucky party is the Romanian National Lottery, which let 75 million Euros slip by its hands, by not respect terms of the contract. The management of the organization is the one to blame for receiving online one fifth of the sum that they’ve should have earned from this deal.
The management signed a contract with Novomatic to deliver 10,000 machines that were to be placed in the +2000 shops nationwide. This contract has been the pride of the RNL, being announced as a glory contract in October 2013, by picking Novomatic out of 5 other providers. Even the Prime Minister, Victor Ponta congratulated the institute and backed the decision of the management.
Victor Ponta’s statement looked like this: “For over ten years, the Romanian Lottery has earned ten million Euros. Now we signed a contract to earn 75 million Euros. So from 10 to 75. If you watch the TV, you’ll know there’s something wrong.”
The Romanian National Lottery received 14 million Euros from Novomatic during their first year of contract. The remaining amount shall not be payed by Novomatic because of the terms of the contract were breached by the RNL. The Austrian’s from Novomatic have added the clause that the Romanian National Lottery would renovate all of its shops and would modify their opening hours from 8 to 12 hours.
The RNL didn’t honour its obligations, thus leading Novomatic Romania to remain discreet about this extremely disappointment they’ve had with the organization.
Mr. Adrian Georgescu, the director of Novomatic Romania stated the following: “I can not answer any questions. The best thing would be to ask the Lottery. If they do not want to answer, it means that the more I should not answer.”
Even the last President in office, Mr. Traian Basescu made a statement last year that it will wait to see if everything will go according the plan and if the terms of contract shall be respected.
The contract between Novomatic and the Romanian National Lottery has been signed for a period of 15 years. Earlier contracts of the Lottery were signed with the greek company Intralot, from which the RNL received a commission between 20 -30% and covered all the expenses.
The contract between Intralot and the Romanian National Lottery has been catalogued by the Control Body of the Ministry of Finance as one of the most damaging contracts ever made by the state.
This new contract should have been the one that clears this history of bad karma.
