Romanian Economy minister Adriean Videanu requested Aurel Cazacu's demission. He is the general manager of the General Authority of Defence Industry and Special Problems, after the start of the arms trade scandal, Romanian TV channels inform.

Aurel Cazacu's daughter is a recent former associate in Defence, Security and Intelligence CO - Desintco SRL company, next to Mircea Basescu, Romania's incumbent President brother, and next to an ex-general from the National Defence Ministry (MApN), Ion Eftimie.

Aurel Cazacu told Realitatea TV reporters on Thursday night that he was not involved in a conflict of interests because it was his daughter who had shares with Desintco and the company was not active in the weapon industry yet. He also said that Maria Cazacu will give up her shares.

The Economy Ministry's Control Body announces investigation in the case of Aurel Cazacu's involvement in doing business with Mircea Basescu. Economy minister Adriean Videanu added that there has not been any transaction made in the defence industry.

Romania's President Traian Basescu addressed the issue of his brother's involvement on Friday evening, saying that he signed for one company an was registered with another company. "Interesting, isn't it? I received the copy of the documents he had signed and the number for the company he signed a contract with is different then the registered company, although he's listed as shareholder."

Mircea Basescu previously declared for Antena 3 reporters that he did not know how he ended up shareholder in Defense, Security and Intelligence Co - Desintco SRL, next to names from the weapon business environment. But another Desintco shareholder, Grigore Geamanu, said later for Realitatea TV that only the name of the company changed, not its profile. He added that he's been acquainted with Mircea Basescu for 20 years and that he knew Traian Basescu since the time he led the Transport Ministry.

Traian Basescu noted that he was particularly interested in one statement made by a Desintco businessman, who underlined that his brother's participation in the company would open gates at Cotroceni. It was Aurel Cazacu who had made the declaration on Thursday.

Romania's President tried to distance himself from his brother's involvement with a weapon company. An official Cotroceni report reads that "President Traian Basescu regrets the fact that one of his family members holds shares with a company activating in the military sector. ... The President requested Mr. Mircea Basescu to give up his shareholder quality from the named company immediately".