site.btaUPDATED Anti-Corruption Commission, Prosecution Office Conduct Searches in Connection with Suspicious Loan Worth BGN 148.5 Mln

The Commission for Anti-Corruption (CAC) and the prosecutor's office are conducting searches in connection with an investigation into a loan granted by the Bulgarian Development Bank worth BGN 148.5 million, the prosecutor's office told BTA on Wednesday.

More information on the investigation is expected at a later stage.

The Anti-Corruption Commission said on Friday that the subject of the investigation is data on mismanagement and embezzlement committed by BDB officials in connection with a contract dated June 17, 2019, whereby the bank granted a loan of BGN 148.5 million to Roadway Construction, which was secured by a contract for the supply of inert materials by PatstroyEngineering AD. The principal shareholder in the latter company is Bio Mining AD. The investigation found that all three companies are managed by a Bulgarian citizen identified as R.G. 

The Bureau for Investigative Reporting and Data (BIRD.bg) said in July that proceedings were initiated on an alert about crimes in the granting and use of a loan of BGN 150 million to a company related to Rumen "the Wolf" Gaytanski. The loan agreement was signed on June 17, 2019 between BDB and Roadway Construction AD. The Sofia City Prosecution Office terminated the proceedings in May 2023. The Bulgarian Development Bank missed the deadline to appeal against the termination of the criminal proceedings, BIRD.bg said.

Political leaders were approached for comment on the searches.

GERB leader Boyko Borissov said that the chaos resulting from repeated failures to elect a regular government or to keep it up for a full term has been going on for four years. "Anything that anyone does in those services, the Interior Ministry, the prosecuting and investigative magistracies, can be branded by someone as politically motivated," Borissov said. He suggested that prosecutors and judges should perhaps take a break from work when the National Assembly is not functioning during an election campaign, so they can avoid being accused of serving political purposes. Borissov recalled that it was after he took a stand against Gaytanski that he became mayor of Sofia in 2005. "I just can't figure out what is happening now," the ex-prime minister commented.

Vazrazhdane leader Kostadin Kostadinov commented that the prosecution service is trying to clean up its image in the lead-up to the elections. Kostadinov wondered why the prosecuting magistracy has not taken any steps since the alert issued by the State Agency for National Security on August 5. He commented: "We see that the prosecutors take action in some cases but do not take action in other cases. Strangely, the prosecution service has now risen to action in connection with someone who, according to media reports, is linked to Ahmed Dogan [the Honorary Chairman of the Movement for Rights and Freedoms], that is to say, the prosecutors are delivering a blow to Dogan. This means that Delyan Peevski [the Movement's Floor Leader], who owns the prosecution service, is delivering a blow to his direct opponent. Peevski is using the prosecution service as a tool for intimidation."

Continue the Change-Democratic Bulgaria (CC-DB) Deputy Floor Leader Bozhidar Bozhanov commented that the Anti-Corruption Commission obeys Delyan Peevski's orders. "Institutions which are supposed to safeguard public resources are obviously being used to square in-party accounts," Bozhanov said. According to him, CC-DB has for years called for an investigation into the BDB-Gaytanski deal. Both the prosecution service and the Anti-Corruption Commission did nothing for years until the time came to square some people's accounts. That is why citizens mistrust law enforcement institutions."

CC-DB Co-leader Kiril Petkov commented that Gaytanski and former BDB director Stoyan Mavrodiev have reportedly fled from Bulgaria. "Why? Because the umbrella which was protecting them in recent years was lifted," Petkov said. He noted that when he was economy minister, he warned that BDB was being drained. Petkov said that the state has received only BGN 3.5 million in repayment for the BGN 145 million loan, meaning it has lost more than BGN 140 million, because Gaytanski had no trouble stealing the money under BDB's protection. Petkov asked what Anti-Corruption Commission head Anton Slavchev has been doing over all these years. "We have spent three years providing every bit of information, saying that over BGN 1 billion had been stolen from BDB, we said it on the news, everywhere. Mr Slavchev did absolutely nothing about it. Suddenly, the umbrella was lifted and he [Slavchev] decided to resort to intimidation because of Peevski, and suddenly they [Gaytanski and Mavrodiev] disappeared," Petkov said. He recalled that last week his parliamentary group submitted a proposal to remove Slavchev from office, supported by over 80 MP signatures.