site.btaPublic Financial Inspection Agency Finds Public Procurement Act Violationals in Road Infrastructure Agency's Assignments Worth Over BGN 710 Mln

A Public Financial Inspection Agency’s inspection found severe violations of the Public Procurement Act (PPA) in the procurement of road maintenance and repair works by the Road Infrastructure Agency (RIA), Finance Ministry said on Thursday. 

The inspection was commissioned by Deputy Prime Minister for EU Funds and Finance Minister Assen Vassilev on June 28, 2022. The report was submitted to the Finance Ministry on August 29, 2023, and the Regional Development Ministry on August 25, 2023.

A total of 95 additional and extraordinary assignments were audited within the scope of the financial inspection for a total value of BGN 718.834 mln excluding VAT, qualified by the authorities of the State National Construction Inspectorate as "major repairs" under the contracts for preventive maintenance of the national roads by RIA.

The audit found that the contracts for carrying out maintenance of the national roads were amended in connection to 90 additional assignments, valued BGN 710.332 mln excluding VAT, assigning them activities with the scope and nature of "major repairs", which are outside their subject matter. This violated essential requirements of the Public Procurement Act.

A total of 69 administrative offence penal decrees were issued against 4 officials who signed the additional assignments. The responsible officials for the remaining 21 assignments hold no administrative liability due to the expiry of the 3-year time-limits under the PPA.