Stavarache, a member of the opposition National Liberal Party, was remanded in custody for 30 days on Tuesday for allegedly receiving bribes of over 2.3 million lei (some 520,000 euro) from businessmen.

According to the government’s anti-corruption department, DNA, between 2008 and 2011, Stavarache allegedly received, directly or via two other people who were also detained over the bribery claims, various amounts of money from four businessmen, in exchange for assigning them public contracts.

In one incident, Stavarache allegedly asked a company to give him 50 per cent of the value of the work paid for by Bacau city hall for installing street lights. He also demanded from another firm 10 per cent of the value of a building contract for a 45-apartment block which was worth 2.7 million euro.

Following Stavarache’s arrest, the leaders of National Liberal Party said the mayor should suspend himself from the party pending the outcome of the investigation.

Romeo Stavarache has been the mayor of Bacau since 2004. Bacau is one of the richest cities in eastern Romania, with an annual budget of more than 150 million euro.

Romania is still considered one of the most corrupt states in the European Union and has made only limited progress in fighting corruption and organised crime since it joined the EU in 2007.

But in recent years, the number of high-ranking officials sentenced for graft has increased significantly.

Last month, the DNA said in its latest progress report that 850 people, including ministers, lawmakers, mayors, judges and prosecutors, have been convicted of corruption over the past 12 months.