BUCHAREST (Reuters) - Romanian anti-corruption prosecutors have started a criminal investigation of the brother-in-law of Prime Minister Victor Ponta as part of a wider case involving misappropriation of European Union development funds, they said on Wednesday.
The case is the second related to the prime minister's family. Prosecutors began an investigation last year into an alleged property restitution scheme involving Ponta's father-in-law, Ilie Sarbu, himself a powerful figure in the ruling Social Democrat party and a senator since 2004.
Romania joined the EU in 2007 but remains one of its most corrupt member states, according to Transparency International. Its justice system is under special monitoring.
Anti-corruption prosecutors have won praise from Brussels for their efforts to combat high-level graft. Their open investigations have reached various lawmakers, former ministers and even the brother of former President Traian Basescu.
Prosecutors said they have charged Iulian Hertanu, Ponta's brother-in-law and a local businessman, with setting up an organised crime group, tax evasion and misappropriating EU funds from a development project in the central county of Prahova.
They questioned Hertanu for hours on Tuesday and will ask a judge to approve a 30-day arrest warrant pending the investigation. Hertanu declined any comment.
In the same case, prosecutors are also investigating six other people -- three other businessmen, the president of Prahova's county council and two members of parliament, including MP Sebastian Ghita, an ally of Ponta -- for allegedly supporting the crime group's activities. Ghita denied wrongdoing.
Starting in 2007, the EU set aside 20 billion euros (14.76 billion pounds) for Romania for upgrading its infrastructure and other development projects. But unlike its emerging European peers, Romania has struggled to tap the funds.
There was no evidence to suggest that Ponta himself was involved in the case.
Data from anti-corruption prosecutors showed 1,138 people were sentenced for graft and related offences last year, including one former prime minister, two ministers and five lawmakers.