site.btaEPPO Accuses Former Varna Mayor and Ex-governor in Fishing Port Fraud Investigation

The European Public Prosecutor’s Office (EPPO) announced Friday that it has formally accused the former mayor and the ex-governor of Varna, as well as two public officials from the Executive Agency Maritime Administration, in an investigation into possible fraud, reported by OLAF, involving the reconstruction of a fishing port. 

The four are accused of forging official documents and submitting false information, in order to illegally receive EU funds for a EUR 3.4 million project, co-funded by the European Maritime and Fisheries Fund. 

Yes, Bulgaria, one of the parties in the Continue the Change - Democratic Bulgaria coalition wrote in a Facebook post that following a tip-off by their member and MP Stela Nikolova, from the Varna constituency, former Mayor Ivan Portnih is now formally accused of a fraud. Portnih himself said at a news conference on September 1, 2023, that he expected to be arrested in an EPPO investigation into the fishing port project. He said that the case was a politically-motivated fabrication ahead of the October 29, 2023 local elections. Portnih, the GERB candidate for re-election, then lost the race after serving as a mayor for ten years. 

Stoyan Pasev, Varna regional governor between 2014 and 2017, admitted to Nova Television that there is a prosecutor's case file on the fishing port, but denied any charges. "I have not received a subpoena. There may be [charges] and we may not be notified, but that is not the way to accuse people - through the media," Pasev said.

At issue is a project to improve the infrastructure of an existing fishing port in the outskirts of Varna, submitted by the Municipality of Varna, which was the beneficiary. However, according to the investigation, such a port did not exist when the application for EU funding was submitted. EPPO has found out that in order to be able to benefit from EU funds dedicated for improvement of existing fishing ports, the beneficiary assembled several pontoons as floating piers, with the sole purpose of registering the site as an existing harbour. In addition, the beneficiary presented false information and did not include all the documents required by the national legislation to obtain the necessary certificates. 

According to the investigation, the plots included in the application as an existing port were in fact registered in the cadastral plan of Varna as rocks, sand and other type of buildings – not as a harbour. Based on the evidence, with the help of public officials from the Executive Agency Maritime Administration, the plots of land saw their characteristics modified as defined permanent usage “for a port” – after which a certificate was issued by the Transport Ministry attesting the operational suitability for a fishing port, despite the lack of multiple requirements defined by the national legislation. The fishing port was later formally registered by the Executive Agency Maritime Administration.

The case was first reported to the EPPO by the European Anti-Fraud Office (OLAF), after suspicions of possible serious irregularities and fraud and OLAF also conducted a complementary investigation under EPPO's supervision. The case was further investigated by the General Directorate National Police of Sofia. 

The estimated damage to the EU budget is approximately EUR 2.8 million (BGN 5,603,035.97), with an additional estimated damage to the national budget of EUR 675,475 (BGN 1,321,115.78). 

All persons involved are presumed innocent until proven guilty by the competent Bulgarian courts of law.

The EPPO is an 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.