site.btaEPPO, Counter-Corruption Commission Alerted about Bulgartransgaz Director's Conflict of Interest

The Continue the Change - Democratic Bulgaria (CC-DB) coalition Tuesday alerted the European Public Prosecutor's Office (EPPO) about the reinstatement of Vladimir Malinov as Executive Director of Bulgartransgaz, the state-owned gas transmission company, the coalition said. The alert also references an ongoing EPPO investigation into a project for expansion of the underground gas storage facility in Chiren (Northwestern Bulgaria).

On Monday, the Yes, Bulgaria party, part of Democratic Bulgaria, alerted the Counter-Corruption Commission about Malinov's reinstatement. The alert referred to a violation of the Counter-Corruption Act, which stipulates that within one year after vacating office, a senior public office holder cannot sign contracts to perform management or supervisory functions with companies with respect to which he has taken any steps for disposition, regulation or control during the last year of performance of official duties.

Malinov's stint as caretaker energy minister ended on January 16 when a regular government was elected. On the next day the Supervisory Board of Bulgartransgaz returned him as member of the company's Management Board. On January 23, the latter elected him Executive Director of the company.

The alert to EPPO voices serious concern about conflict of interest on the grounds that in his capacity as caretaker energy minister between April 2024 and January 2025, Malinov was involved in decisions directly affecting the activities of Bulgartransgaz. His appointment to the company raises questions about ethics and legality, the coalition said.

In addition to the violation of the Counter-Corruption Act, the coalition claimed that Malinov's appointment was non-transparent and violated EU directives aimed to prevent corruption and ensure fair competition. The appointment raises concerns about the integrity of decision making by Bulgartransgaz and the Bulgarian government, according to CC-DB.

The alert recalls EPPO's ongoing investigation into the project for expansion of the Chiren gas storage facility. The investigation focuses on suspected misuse of European funds, loose oversight of public procurement, and potential violations of EU legislation on the use of public resources. The alert to EPPO links the two cases, highlighting major issues such as the lack of  transparency of procedures - both in Malinov's appointment and in the conduct of public procurement for the Chiren project. The coalition requested a check into whether legal and ethical procedures were followed in Malinov's appointment and whether there were possible links between his appointment and the ongoing investigation into the Chiren project.

CC-DB called on EPPO to investigate whether Malinov's appointment violated Bulgarian or EU conflict-of-interest laws. It also asked whether decisions made by him during his tenure as energy minister created undue advantage for Bulgartransgaz.

Radoslav Ribarski MP of CC-DB, Deputy Chair of the parliamentary Energy Committee, said: "The appointment of Vladimir Malinov has caused serious public outrage since he assumed a key role in a sector of strategic importance for energy security and energy infrastructure. There are grounds to question the legality of the selection process, as well as concerns about potential conflicts of interest related to his new role."

The coalition emphasized the importance of transparency and adherence to ethical standards in the management of public institutions and called for an objective and thorough investigation of the case.