Bulgarian court denies defence motion to dismiss CCB embezzlement lawsuit
Bulgaria’s special criminal court ruled on March 27 to dismiss a motion by the defence asking to dismiss the lawsuit related to the collapse of the Corporate Commercial Bank (CCB), with the next hearing on May 9 expected to see the trial begin in earnest.
Once again, the hearing was held int he absence of the main defendant, former CCB majority shareholder and chief executive Tsvetan Vassilev, who is currently in Serbia, where he is fighting against extradition to Bulgaria.
CCB, Bulgaria’s fourth-largest lender by assets at the time, asked to be put under special supervision of the Bulgarian National Bank (BNB) on June 20 2014, following a bank run. An audit several month later found that the bank held mainly impaired assets, requiring a write-down of 4.22 billion leva (about 2.16 billion euro), which led to CCB losing its banking licence in November 2014 and triggered the payout of 3.7 billion leva in depositor claims, which required a government loan of more than two billion leva for the state deposit guarantee fund to meet all claims.
In July 2017, the country’s prosecutor’s office said that it concluded its investigation into the events preceding the bank’s collapse and indicted 18 individuals as part of the investigation, starting with Vassilev.
Vassilev claims that the investigation against him is politically motivated and blamed the events that led to CCB’s insolvency on his former business associate Delyan Peevski, the controversial MP for the Movement for Rights and Freedoms (MRF).
Beyond Vassilev, a number of former senior officials at the lender have been accused of being part of the organised crime group that Vassilev is alleged to have led and spearheaded. Some of them, but not all, are also facing embezzlement charges. Two auditors from KPMG Bulgaria are also facing embezzlement charges, while three former employees of the central bank – including former deputy governors in charge of bank supervision Tsvetan Gounev and Roumen Simeonov – have been indicted on charges of mismanagement.
Vassilev was indicted on a total of 146 counts. He and the other defendants are alleged to have embezzled a total 2.56 billion leva (about 1.31 billion euro), as well as 205.9 million leva in cash.
The prosecutor’s office has previously said that its full bill of indictment and the evidence submitted to the court spanned more than 210 000 pages in 1360 volumes, including the results of questioning more than 400 witnesses and 90 forensic reports.
(For full coverage of the CCB situation from The Sofia Globe, click here. Shuttered CCB branch in Sofia’s Lozenets borough photo: Alex Bivol)
