site.btaRemunerations of SCC Directors Reduced by 50% as of Oct. 1

Following an order by Economy and Industry Minister Bogdan Bogdanov and a decision by the Board of Directors of the State Consolidation Company (SCC), effective October 1, the remuneration of all executive members of the boards of directors of SCC companies has been reduced by some 50%, SCC Executive Director Ivan Zangochev said in a BTA interview. Zangochev was approached by BTA in connection with the expiring deadlines for analysis of SCC subsidiaries, ordered by Minister Bogdanov in late-August.

In early August, Finance Minister Assen Vassilev said that salaries of board members of state-owned companies were as high as BGN 14,000.

Zangochev said that all SCC subsidiaries also have limited their representation expenses. Following structural changes, the number of board members in the companies has been reduced by 15%, he explained.

The analysis of the companies shows that Eko Antratsit EAD, Eco Engineering - RM EOOD and the National Institute for Research and Certification EOOD are bleeding money, Zangochev said. The three companies’ losses totalled about BGN 9 million in 2022. The main part of these losses, BGN 8.761 million, was generated by Eko Antratsit EAD. The other two companies lost some BGN 316,000, he added.

VMZ EAD, Kintex EAD, NITI EAD, Avionams AD, LB Bulgaricum EAD, Montagi EAD are in profit. The Marketing Institute Ltd. company still has losses from previous years, Zangochev explained.

Currently, no replacements of executive board members are envisaged in the SCC, he emphasized. The managements of the loss-making companies have been set targets to find opportunities to cover the accumulated losses when drawing up their work plans for the next three years.