Romanian court postpones Nastase graft trial

BUCHAREST, June 25 (Reuters) Romania's supreme court postponed the initial hearings in a landmark corruption case against former Prime Minister Adrian Nastase by three months tonday, citing procedural reasons.

The trial is the second case against the politician, who ran a leftist government between 2000 and 2004, in an investigation seen as a litmus test of Romania's ability to prosecute high-level corruption.

Prosecutors have indicted Nastase on charges of giving bribes, following earlier charges of blackmail and taking bribes worth 1.4 million euros (1.9 million dollars). The first case is mired in a Constitutional Court appeal.

''Hearings were postponed until Sept. 19,'' said Madalina Buta, the spokeswoman of the court.

Prosecutors said new evidence showed Nastase had promoted an official to the top of the state agency combating money-laundering in an effort to stop an investigation into a bank account worth 400,000 dollars belonging to his wife, Dana Nastase.

An investigation into the account showed Dana Nastase received the money from her aunt who claimed to have sold art, 18th century English manuscripts and antique furniture.

Prosecutors said they found no proof she owned the goods.

Nastase has denied all charges but lost his post as parliamentary speaker and executive president of the opposition Social Democrat party last year as a result of the accusations.

Bucharest faces possible sanctions from Brussels, including a refusal to recognise its court decisions, unless it proves judicial reforms and anti-efforts measures continue.

REUTERS SKB VV1552