Bulgarian prosecutors charge two NEK directors over Belene deal losing 77M euro

Sofia City Prosecutor’s Office has laid criminal charges against two National Electricity Company, NEK, executive directors in connection with an unprofitable deal for the supply of Belene nuclear power station site equipment that meant financial damage of more than 77 million euro, the Prosecutor’s Office said on October 17.

Prosecutors said that NEK executive directors Lyubomir Velkov and Mardik Papazian were indicted on October 14 in connection with a November 2007 deal on a framework contract for the supply of equipment by Russia’s Atomstroyexport.

The value of the contract was 205 million euro and it resulted in financial damage of 77 172 475 euro, the Prosecutor’s Office said.

The two accused had obliged NEK to take on the expenses of all costs of the performance of the contract.

According to the contract signed by Velkov and Papazian, NEK bore all costs associated with research equipment and technical documentation from the buyer, with packaging equipment and technical documentation, marking of cargo units and design of the accompanying documentation.

NEK took on all costs associated with loading equipment of vehicles and unloading of equipment from vehicles of all carriers within the contract, transportation of equipment and technical documentation to the consignee located within the Russian Federation, with transport insurance of the equipment during transportation from the territory of the Republic of Bulgaria to the Russian Federation, and conducting of repairs on the territory of the Russian Federation.

Among the costs incurred are those relating to customs clearance into the Russian Federation, as well as taxes, duties and charges to which the buyer may be subject in connection with the contract.

The two accused had undertaken the transaction without being authorised by the sole shareholder, the state, in violation of the law, prosecutors said.

The investigation into the case would continue in the coming weeks, the Prosecutor’s Office said.



The Sofia Globe staff

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