site.btaFormer, Present Senior Executives of Irrigation Systems EAD Trade Recriminations of Irregularities

Former, Present Senior Executives of Irrigation Systems EAD Trade Recriminations of Irregularities

Sofia, March 10 (BTA) - A check into the performance of the former executive director of Irrigation Systems EAD Galina Panayotova found that in just eight months, the debts of the wholly state-owned company rose by 4 million leva, from 29.6 million by June 30, 2016 to 34.4 million by March 8, 2017, the Agriculture and Food Ministry said in a press release on Thursday.

Contrary to the law, Panayotova concurrently served as executive director and Board of Directors chair, and drew more than 36,000 leva during her six months in office.

Panayotova failed to appeal an audit instrument drawn up by the National Revenue Agency (NRA) in October 2016, as a result of which the company's debt to the NRA increased by 732,627 leva. A civil servant at the Agriculture Ministry was appointed chief accountant of Irrigation Systems in violation of the Public Sector Financial Management and Control Act. The deadline for renewal of agreements on 7 million leva loans with state forestry farms was deliberately missed, which may lead to the institution of new enforcement and court proceedings against the company. Despite an action brought and a pre-trial proceeding instituted, amicable settlements were reached with legal persons on the purchase and sale of ferrous metals on the commodity exchange and 71,404 leva were paid under those settlements.

On January 6, 2017, Panayotova was replaced as executive director of Irrigation Systems by Snezhina Dineva, who was wrongfully dismissed by Panayotova from her position as head of the company's Administration and Legal Directorate. Dineva was reinstated by the court, which ordered Irrigation Systems to pay her 12,200 leva compensation.

On March 8, the dismissed Board of Directors argued in a letter to the media that the personnel changes came after Panayotova alerted the Prosecutor General and the Public Financial Inspection Agency on the basis of an audit report prepared by the Agriculture Ministry which blames Dineva, among others, for irregularities.

According to Thursday's press release, no trial and pre-trial proceedings for abuse have ever been instituted against Dineva.

The former directors fear that the reshuffle is designed to impede the work of prosecutors and investigating magistrates on the ongoing checks and pre-trial proceedings and to conceal and destroy documents. "We have serious reasons to believe that, doing somebody's political bidding, the caretaker Minister of Agriculture and Food is shielding people whose actions inflict detriment on the State," Panayotova's camp argued. In their words, the changes at Irrigation Systems are actually a "clandestine privatization scheme".