site.btaFormer Economy, Energy Minister Traikov, Ex-Finance Minister Djankov Charged with Mismanagement, Malfeasance

Former Economy, Energy Minister Traikov, Ex-Finance Minister Djankov Charged with Mismanagement, Malfeasance

Sofia, January 3 (BTA) - The prosecuting magistracy has pressed charges against former economy and energy minister Traicho Traikov and is now trying to locate former finance minister Simeon Djankov to serve him with a warrant constituting him as a party accused of malfeasance in the same case, Prosecutor General's Spokesperson Roumyana Arnaoudova told a news briefing here on Tuesday.

She said that if Djankov's present address cannot be found by the police in the coming days, he will be put on a national wanted list. Arnaoudova declined to elaborate on Djankov's charges.

According to the charges against Traikov, between May and June 2011, in his capacity as an authority exercising the rights of the State as a shareholder in the EVN electricity distribution company and as an authority exercising the rights of the State as owner of the State Consolidation Company (SCC EAD), he failed to exercise due care of the management, administration, stewarding and conservation of the property entrusted to him and, as a result of this, SCC EAD sustained detriment amounting to 20,829,200 leva.

Traikov granted consent to the sale of the 51,612 shares in the capital of EVN Bulgaria Elektrorazpredelenie EAD, held by SCC EAD, to be effected by the Privatization and Post-privatization Control Agency (PPCA) in violation of the Electricity Distribution Companies' Privatization Strategy adopted by a Council of Ministers Decision of June 11, 2003. According to that Strategy, the residual shareholding should have been sold at a profit, with an improvement of the performance of the company and an increase of the share price.

According to "24 Chassa", Traikov was managerial agent at EVN before he became energy minister in Boyko Borissov's first cabinet in 2009. Bulbrokers, owned by Ivo Prokopiev, was the agent which represented both the buyer and the seller in the sale of the State-owned shareholding.

"Troud" writes that Traikov could get an up to 12 years' prison sentence if found guilty.

"Sega" quotes Traicho Traikov as assuming that he incurred the charges by calling for radical changes in the judicial system, especially in the prosecution service, during his presidential campaign. Traikov also argues that the sale was effected by the Privatization Agency, whose Executive Director has not been replaced since then and has not been charged with mishandling the deal.

Traikov said on bTV Tuesday morning that his lawyers, having familiarized themselves with the charges, found them to be "sheer nonsense" from a legal point of view. "Clearly, the charges will not hold up in court, but what matters to the prosecution service is the political effect," he argued.

The 33 per cent minority state-owned shareholding in EVN Elektrorazpredelenie and EVN Elektrosnabdiavane was sold on December 21, 2011 through the Bulgarian Stock Exchange-Sofia at a price of over 90 million leva. The market bids entered for the shares were by nearly 20 per cent higher than the minimum price set by the PPCA, which listed the securities on the exchange.