site.btaEPPO Seizes Assets in Investigation into EUR 2.6 Million Fraud in Bulgaria Involving Water Supply

The European Public Prosecutor’s Office (EPPO) in Sofia (Bulgaria) secured the seizure of assets in an investigation into a EUR 2.6 million project involving works to the water supply network of a municipality in Bulgaria, funded by the EU, EPPO said in a press release on Monday. Under investigation are public officials and a mayor, suspected of defrauding the EU budget.

At the EPPO’s request, the Sofia Court of Appeal imposed precautionary measures, including the seizure of real estate and vehicles belonging to the suspects under investigation, which were enforced by the public bailiff on Friday. Seven buildings, with а total area of 1,956 square metres, were seized, as well as three vehicles, in order to compensate the estimated damage to the EU budget.

At issue is a project to reconstruct the water supply network and the water reservoir of a municipality in Bulgaria, funded by Bulgaria’s State Fund for Agriculture (SFA), under the EU’s Rural Development Programme, to an amount of EUR 2.6 million (BGN 5.2 million). 

The investigation uncovered evidence of fraud in the execution of the contract, awarded to private companies. Public officials from SFA are suspected of making fraudulent arrangements with a mayor and those companies, in order to inflate the price of the works and overcharge the paying agency. 

The public officials are also believed to have drafted documentation with false information, certifying that all the works had been completed within the established deadline, which were then submitted to the SFA, in order to obtain the EU funding. The suspects also include experts from the municipality’s department supervising the works. One of the suspects is also being investigated for money laundering.

All persons concerned are presumed to be innocent until proven guilty in the competent Bulgarian courts of law.

*The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.