site.btaMedia Review: August 16

THE HEADLINES

Friday's headlines feature a diverse array of leading stories. 24 Chasa reported a notable increase in luxury car purchases, while Trud highlighted a potential withdrawal of caretaker prime minister-designate Goritsa Kozhareva. Duma covered President Rumen Radev's signing of a decree endorsing amendments to the Education Act aimed at restricting the promotion of non-traditional sexual orientations. The most widely covered story, however, centers on the indictments of businessman Rumen "the Wolf" Gaytanski and former Bulgarian Development Bank (BDB) director Stoyan Mavrodiev in a high-profile embezzlement case. Additionally, extensive coverage was given to the testimony of Tsvetan Vassilev, the former banker and owner of the collapsed Corporate Commercial Bank (CCB), before a parliamentary commission. The cover story in Capital Weekly is entitled "Welcome to the World of Vapes" and says that legal loopholes, commercials, promises of safety and glitsy tech gadgets, vapes took over the youth market as cigarettes once did. Regulating the business will be hard but necessary, the cover story says.

POLITICS

Trud reported on a potential withdrawal of Goritsa Kozhareva from the caretaker prime minister's position, citing personal reasons. Political experts suggest her withdrawal could be due to political pressure, fear of failure, or family advice against accepting the role. Some speculate that the rumors themselves are part of the pressure campaign. Political analyst Stoycho Stoychev suggested pressure may be coming from President Radev, Movement for Rights and Freedoms (MRF) leaders, and Continue the Change-Democratic Bulgaria (CC-DB) over the appointment of Kalin Stoyanov as Interior Minister. Borislav Tsekov, who is presented by Trud as a constitutional law expert, criticized the limited pool for caretaker prime ministers and noted Kozhareva's lack of political experience. Tatyana Burudzhieva, another analyst, emphasized that if Kozhareva withdraws, it likely indicates she was forced out through pressure, including over controversial issues like the LGBTI+ amendment to the Education Act and the calls for removal of Stoyanov from the cabinet.

No other media outlet has this story.

SOCIETY

Duma reported that President Rumen Radev has signed a decree sending for gazetting the amendment to the Education Act, which bans "propaganda of non-traditional sexual orientation". bTV, Mediapool and the Bulgarian National Radio (BNR) provided coverage of the public protests against the refusal of the President to veto the revisions. Peaceful demonstrations in downtown Sofia saw both support and opposition to new legislation. Critics argued that the vaguely defined "propaganda" could endanger vulnerable groups, calling for more dialogue and unity. Some protesters demanded Radev's resignation for signing the decree despite calls to veto the changes. Proponents, led by Vazrazhdane, organized a demonstration supporting a ban on "gay propaganda". Protesters chanted "Hands off our children," emphasizing their belief that the law protects children from being influenced by "gender ideology." Vazrazhdane chair Kostadin Kostadinov praised the law as a victory and supported Radev's decision to sign the decree. Advocates expressed concerns about children being exposed to what they view as inappropriate content at a young age, framing it as harmful propaganda.

CRIME

Capital, Dnevnik, Mediapool, bTV, BNR, 24 Chasa, and the Bulgarian National Television (BNT) reports that businessman Rumen Gaytanski, also known as "Wolf," and former Bulgarian Development Bank (BDB) director Stoyan Mavrodiev have been charged in an embezzlement case. The charges include misappropriating BGN 150 million from a state loan granted in 2019 by Bulgarian Development Bank to Roadway Construction, a company linked to Gaytanski. The loan, which has been in default since 2022, was unsecured, and is alleged to have been used to pay for personal expenses, including luxury purchases and potentially illegal construction projects.

The funds were also reportedly used to repay debts associated with the Varna coal-fuelled power plant; a company linked to MRF honorary chair Ahmed Dogan. The investigation, led by the Sofia City Prosecutor's Office and the Commission for Anti-Corruption, has included extensive searches of properties connected to Gaytanski and Mavrodiev. Although both men are currently at large, with speculation that they may have fled the country, Ivan Georgiev, a representative of the company that received the loan, has been detained and is charged as an accomplice.

Capital and Dnevnik write that this case is part of a broader investigation into corruption and financial misconduct involving high-profile political figures and state institutions in Bulgaria. The investigation, which began in late 2022, has expanded to explore potential money laundering and to trace the loan's flow, including possible connections to the Varna power plant and other figures, like MRF honorary chair Ahmed Dogan. The prosecution service's renewed focus on this case after years of inactivity suggests a potential shift in political dynamics, particularly within MRF, which is closely linked to the key players involved. The case could lead to significant legal consequences, with potential prison sentences of 10 to 20 years and asset confiscation if convictions are secured, Dnevnik writes.

The prosecution has expressed concerns about political pressure impacting its work. Prosecutor Desislava Petrova emphasized Thursday that the prosecution service must operate independently, without aligning its actions with political agendas. She urged for restraint from political interference, stressing that the judiciary must be allowed to perform its duties without external influence. Petrova reassured that the public will be informed of the investigation's outcomes in due course, Dnevnik also says.

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Dnevnik, BNR, BNT, Duma, 24 Chasa and bTV reported on a hearing of Tsvetan Vassilev, the former banker and owner of the collapsed Corporate Commercial Bank (CCB), at a parliamentary committees investigating alleged judicial influence by two individuals: Petyo "the Euro" Petrov, a former prosecutor and head of the Sofia Investigative Service, and suspected power broker Martin Bozhanov. Vassilev claimed that Lyubena Pavlova, Petrov's ex-wife, provided flash drives containing compromising materials on CCB to US authorities in Geneva. He explained that the materials revealed Geshev's role in the CCB's bankruptcy and looting, benefiting many, including Peevski, who was sanctioned under the Magnitsky Act. The handing of the information to the US prompted Geshev's ousting as Prosecutor General, Vassilev said. He accused Peevski of orchestrating the attack on CCB, with Petrov acting as the executor, and emphasized that political pressure has influenced the investigation into the bank's collapse.

During the testimony, Vassilev criticized the lack of accountability in Bulgaria's judiciary, pointing out that he has not been questioned by authorities despite offering to testify. He suggested that political motives are behind his prosecution and connected the CCB case to broader issues of corruption involving high-profile political figures. Vassilev also discussed Peevski's role as the main coordinator of the South Stream project, alleging his involvement in various corrupt dealings.

The session was marked by strong-worded exchanges, particularly from MRF's Hamid Hamid, who dismissed Vassilev's credibility and criticized the decision to hear his testimony via video link. Vassilev defended himself against allegations of being a Russian agent, noting his past association with the Atlantic Council of United States and refuting claims of ties to Russian influence in Bulgaria. 

Vassilev fled Bulgaria as his bank collapsed in 2014 and the judicial authorities have failed to secure his extradition to Bulgaria from Serbia.

ECONOMY

24 Chasa wrote about affluent Bulgarians spending over BGN 65 million on luxury vehicles in the first seven months of the year, with the total amount doubling when including high-end brands like BMW, Mercedes, and Audi. Bulgaria is witnessing a surge in luxury car purchases, including 33 Lamborghinis, 34 Ferraris, and 21 Rolls-Royce limousines, among others. The country ranks second in the EU for consumption-driven economic growth, with a notable boom in Porsche sales. Additionally, Bulgaria recorded the highest growth in new vehicle purchases among EU member states, with a 30.8% year-on-year increase, totaling 23,047 new vehicles in the first half of 2024.

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Capital reported on the Chiren gas storage facility expansion, a EUR 300 million project critical to Bulgaria's energy security and the broader EU, which is currently under investigation by the European Public Prosecutor's Office. The investigation focuses on Bulgartransgaz, the state-owned gas operator, and examines the financing and tendering process of the project, partially funded by a EUR 78 million EU grant. Despite the project's importance in doubling gas storage capacity and improving supply diversification, it has faced significant delays, controversies, and complaints, especially from foreign bidders who claim they were excluded from the tender process.

Glavbolgarstroy, a Bulgarian company, won all three contracts for the project, despite objections and legal challenges from competitors, particularly a Czech alliance. The contracts cover the aboveground infrastructure, underground drilling, and a connecting gas pipeline. Critics argue that the tender process was flawed, with claims of potential corruption and concerns over the contractor's expertise in specialized drilling.

The investigation has led to the temporary suspension of the contract by Caretaker Energy Minister Vladimir Malinov, who hinted at possible external interference, potentially from Russian interests, aimed at destabilizing Bulgaria's efforts to diversify its gas supply. The expansion of the Chiren facility is vital for Bulgaria's gas grid, allowing for greater flexibility in meeting seasonal demand and reducing reliance on specific energy sources.

The outcome of the investigation is critical, as it could impact the project's completion and Bulgaria's ability to enhance its energy security. Despite the suspension, significant progress has been made on the project's infrastructure, with key components already nearing completion. The project also holds priority status under the Three Seas Initiative, further underscoring its strategic importance for the region.