Romania's Presidential Administration responded on Friday to information that President Traian Basescu's brother, Mircea Basescu, was involved in arms businesses. "President Basescu regrets that a member of his family is shareholder in a firm with activities related to the military sector", a press release says.

Following a report in Romanian business newspaper Bursa that Mircea Basescu is involved in arms related businesses, the issue was debated on Romanian news channels on Thursday evening. They said Mircea Basescu was associated in a company with important people from the international and national arms industry, which would be immoral because "President Basescu is head of the Supreme Defense Council which decides where military money goes".

Mircea Basescu would control some 30% of the company, along with the daughter of Aurel Cazacu, a former head of Romtehnica and the president of Romarm, as well as the General Sandu. Businessman Romeo Oita, another associate, said the firm was only a consulting company and was not involved in arms dealing, but in the organization of military and conference fairs and was not involved in contracts with the state, but only in a collaboration partnership.

The presidential press release on Friday said President Basescu received assurance that the said company was not involved in contracts with military products and that the head of state demanded his brother to withdraw from the company imediately. Romania's Presidential Administration responded on Friday to information that President Traian Basescu's brother, Mircea Basescu, was involved in arms businesses. "President Basescu regrets that a member of his family is shareholder in a firm with activities related to the military sector", a press release says.

Following a report in Romanian business newspaper Bursa that Mircea Basescu is invo