site.btaEx-Economy and Energy Minister Ovcharov Indicted for Mismanagement, Official Misconduct

Sofia, March 30 (BTA) - Former economy and energy minister Roumen Ovcharov has been indicted on charges of intentional mismanagement and official misconduct, the Sofia City Prosecution Office said.

The first count of the indictment is that between June 9, 2006 and July 18, 2007, Ovcharov failed to exercise sufficient control, resulting in substantial detriment to Bobov Dol Mines EAD to the amount of 8,940,231 leva, which constitutes a very serious offence.

The second count is that between May 31, 2006 and February 26, 2007, Ovcharov exceeded his powers and acted unlawfully in his official capacity to allow a private company to extract minerals which are exclusive state property, causing not insignificant detriment to Bobov Dol Mines EAD and the State.

In his capacity as economy and energy minister, Ovcharov was aware of the company's poor financial indicators and made changes in its Board of Directors. The new Board proposed three recovery plans but the minister rejected all three without reasoning.

When two private companies showed interest in Bobov Dol Mines in the spring of 2006, Ovcharov violated the requirement for competitive bidding and decided to lease out company assets to Oranovo EOOD for five years through direct negotiations.

Two financial audits showed that the expected financial recovery was not achieved. Bobov Dol Mines continued operating at a loss and the rent paid did not cover even the depreciation costs. Although he was aware of these findings, Ovcharov did nothing to remedy the situation.

If convicted, Ovcharov faces between three and ten years in prison.