This decision was made in two days without the necessary documentation. We refer to SANS and the prosecutor’s office, the Minister of Economy announced.
Minister Bogdanov also announced that the contractor of the so-called government complex has been asked to reimburse nearly BGN 60 million , which were paid in advance and without a public tender
“The State Consolidation Company (SCC) has lost a case for BGN 75 million at first instance. Judgment was rendered dismissing the claim for the establishment of the receivables from Kemira EOOD. under an assignment agreement concluded between SCC and Malaz EOOD. The contract for the acquisition of receivables is worth BGN 97.4 million. This is new financial damage for the state.” This was announced by Minister of Economy and Industry Bogdan Bogdanov at a briefing today.
The Minister described the situation as another blow to the SCC, where potentially the state has been disadvantaged by BGN 97 million. He clarified that these were assignments that the SCC had acquired in 2018 in a contract with the Malaz company. These assignments were acquired by KTB through companies in the bank’s orbit, including the company Kemira, which accumulated these liabilities, which were subsequently acquired by SCC. The contract between Malaz and SCC for the acquisition of receivables is worth BGN 97.4 million. Against this amount, the SCC has paid BGN 24.352 million to Malaz.
He pointed out that after checking, it appears that on January 8, 2018, the Ministry received a one and a half page report from the SCC stating that the SCC wanted to enter into negotiations with a potential seller of the liabilities in question. One day after that, the SCC decided to acquire the liabilities and in a fresh report to the minister, permission was sought to sign the assignment agreement, the minister explained the chronology. The permit was received at the end of the day — on 10 January.
The minister pointed out as extremely worrying the fact that in two days the state decided to acquire a debt of BGN 97 million. “On 10 January, the SCC obtained the minister’s signature. The funds were paid in two tranches — in January and in mid-February (BGN 25 million). This is how the debt of BGN 97 million was acquired, which is currently on the balance sheet of the SCC”, Minister Bogdanov explained.
The Economy Minister explained that the SCC lost the case because it failed to show the necessary documents to prove its claim against Kemira. “The Ministry of Economy and Industry and the State Commission for Construction and lack the assignment contract and other related documents,” Bogdanov said.
“We are discussing with the SCC legal team the next steps we will take. We need to be aware of the possible risks for the company,” the minister said. At the moment the state company has to pay a fee of BGN 750 000. Bogdanov clarified that if the appeal is decided, the amount will increase to 1.5 million.
The minister announced that today, based on the court’s decision, the SANS and the prosecutor’s office will be contacted — on the one hand, because of the lack of documents and on the other hand, to establish how a document without a signature has created a legal basis.
Regarding the unrealized government complex, Minister Bogdanov announced that together with the management of the State Construction Committee, they have requested reimbursement of the funds given by the contractor, which amount to BGN 66 million , and which were paid in advance without a public tender. An answer is expected next week regarding the return of the amount to the account of “Montazhi” EAD and from there to the SCC. “This needs to happen urgently because of the interest that is flowing every day,” Bogdanov said. We remind you that for the paid in advance more than BGN 80 million for a new government complex the State Construction Committee uses a loan from the Bulgarian Development Bank and pays millions in interest per year.
Minister Bogdanov also reported on the work done by the new leadership of the SCC for the last two months. According to him, the companies, whose principal is the company, have already prepared business programs, financial statements for 2021 and 2022 have been made. He announced that the tenders for the new management team are forthcoming, ensuring transparency in their conduct.
In his words, nearly BGN 700 million are the potential financial damages for SCC so far. These include the losses for the repairs and reconstructions of the dams, for the unrealized government complex, for the framework contract for the acquisition of claims and participations between the State Construction Company and Malaz EOOD, and for the costs of the case filed in the case.