Actions have been taken to recover funds from the Bulgarian State
Minister of Economy and Industry Bogdan Bogdanov has taken action to recover financial losses for the State Consolidation Company EAD (SCC) generated in previous years. These include the losses for the repairs and reconstructions of the dams, for the unrealized government complex, and for the framework contract for the acquisition of claims and participations between the SCC EAD and the commercial company Kemira.
Within the statutory time limit, the Ministry of Economy and Industry, on the basis of Article 243, paragraph 4 et seq. of the Criminal Procedure Code, appealed against the Decision of 28 November 2023 for termination of criminal proceedings under the pre-trial proceedings in the inventory of the National Investigation Service and the prosecutor’s file initiated by the Sofia City Prosecutor’s Office, concerning the unlawful expenditure of funds by ‘Montagi’ EAD for the repair of dams, without public procurement and without construction permits issued for them. Some of the sums were found to have been spent even on projects other than dam repairs.
The case lost at first instance for over BGN 75 million has been appealed. These are financial damages for the state, respectively for SCC EAD, because of an assignment agreement concluded by the company in 2018. We would like to remind you that the Sofia City Court ruled that the claim for the establishment of the receivables from Kemira EOOD under an assignment agreement concluded between SCC EAD and Malaz EOOD was rejected as unfounded. The proceedings in the case established the absence of the original documents related to the assignment.
These are the latest steps by the state in the face of the Ministry of Economy and Industry to recover funds spent in past years on the basis of decisions without the necessary documentation and without financial justification.
Action has also been taken to recover nearly BGN 70 million excluding VAT paid in advance in 2020 in connection with the construction of a new government complex by SCC EAD, which will not be implemented. At present, invitations have been sent to the project subcontractor to reimburse the amounts advanced for the implementation of the project without financial justification. After the reimbursement of the amount, SCC EAD will have the opportunity to repay part of the debt it has to the Bulgarian Development Bank so that the state and taxpayers do not pay interest for this project. For the money paid in advance for a new government complex, the company uses credit and pays millions in interest per year.