site.btaJustice Ministry Proposes Legislative Changes Aimed at Limiting, Eliminating Sham Arbitrations

Justice Minister Georgi Georgiev said Wednesday that his Ministry has proposed legislative changes aimed at limiting and eliminating sham arbitrations. Speaking at a briefing at the Council of Ministers, he added that the proposed amendments to the International Commercial Arbitration Act have already been uploaded on the website of the Ministry and are part of the Cabinet's commitments in the "war against the property mafia". 

Georgiev pointed out that about 40 arbitral tribunals have ruled in three years with over 600 decisions. He added that there have been cases of citizens being convicted without them even realizing. 

"Arbitration proceedings are not a bad thing. There are well-established arbitration institutions in Bulgaria, but along with them we see a lot of problems," the Minister clarified. He stressed that so far the Justice Ministry had no effective mechanism to control arbitration tribunals. 

The Minister also indicated what the specific changes are. Among them are the establishment of a register of arbitration tribunals in Bulgaria, increased requirements for arbitrators themselves, strict rules on service of process, increased protection of citizens' rights, and strict rules on setting aside arbitral awards. 

The Inspectorate to the Minister of Justice will be able to carry out inspections and refer specific cases, it became clear from the Minister's words. He assured that bona fide and well-established arbitrations in the country should have no cause for worry about the tightening of rules.