The Military Prosecutor's Office attached to the Bucharest Military Court of Appeal announced on Tuesday that 17 people are being prosecuted for smuggling, in the forms of co-participation, complicity and incitement, in a case concerning the procurement of a replacement helicopter from Great Britain without paying VAT.

The prosecutors say the case stems from the aftermath of the June 2, 2016 crash of a General Aviation Inspectorate (IGAv) helicopter on a SMURD mission in Moldova, which killed all four crew members. The insurer could either pay compensation in amount of RON 23,343,667 (the equivalent of EUR 5,270,045), or replace the aircraft with a similar one. The parties opted for replacement.

According to investigators, in November 2017, IGAv took over the replacement helicopter on Guernsey, a UK territory outside the EU VAT area, and brought it into Romania. Prosecutors say the aircraft was introduced and used without completing customs procedures, generating VAT damage of RON 4.43 million to the state budget.

The prosecution argues there is 'reasonable suspicion' that those involved in the compensation process allowed the insurer to deliver a helicopter that never obtained Romanian-goods status, was not customs-cleared and for which VAT was not paid - constituting an undue benefit to the insurer.

Head of the Emergency Management Department (DSU) Raed Arafat, who is also charged in the case, publicly rejected any suggestion of wrongdoing, saying no evidence had been presented indicating criminal conduct on his part.

He stated that his inclusion in the case 'appears to be forced and artificial, through the statement of alleged theses of complicity or coordination of activities', arguing that he had no role in customs procedures or the helicopter's import route.

Arafat also noted that the file originated at the National Anti-corruption Directorate (DNA), which later declined it after finding no bribery or abuse of office, and that the same prosecutor who handled earlier investigations involving him is now pursuing the smuggling angle.

He explained that the helicopter was delivered by the insurer as a replacement for the crashed aircraft and that IGAv believed no customs duties or VAT were owed. 'I have never in my life dreamed that I would be an accomplice to smuggling with helicopters... which belong to the state,' he said, adding that the accusation is 'almost hilarious'.

Arafat said he was charged before being heard and will contest the accusations with his lawyers. AGERPRES (RO - writing by: Eusebi Manolache; EN - writing by: Simona Klodnischi)