European prosecutors charge ex-mayor of Varna, three others, over alleged EU funds fraud
The European Public Prosecutor’s Office (EPPO) in Bulgaria’s capital city Sofia filed an indictment on December 1 against a former mayor and the ex-governor of Varna, as well as two public officials from the Executive Agency Maritime Administration, for fraud relating to the reconstruction of a fishing port that did not exist, EPPO said.
The statement did not name the accused. However, on Facebook, former mayor Ivan Portnih described the allegations as a “staged attack” to distract from his successor Blago Kotsev – who faces allegations he denies and who has been subjected to lengthy detention before being released to resume his duties as mayor on December 1 – with Portnih saying that he would hold a news conference to present proof that the allegations were baseless.
The four are accused of forging official documents and providing false information in order to unlawfully obtain 3.4 million euro in EU and national funds for a project aimed at improving the infrastructure of a purported fishing port on the outskirts of Varna, submitted by the municipality of the city (the beneficiary).
According to the investigation, however, no such port existed at the time the funding application was submitted.
Based on the evidence, the plots of land included in the application as an existing port were in fact registered in the cadastral plan of Varna as rocks, sand and other type of buildings.
The investigation showed that the beneficiary assembled several pontoons as floating piers, with the sole purpose of registering the site as an existing harbour. With the help of public officials from the Executive Agency Maritime Administration, the plots ended up being registered as a port.
The estimated damage to the EU budget is approximately 2.8 million euro (5 603 035.97 leva), with an additional estimated damage to the national budget of 675 475 euro (1 321 115.78 leva).
If found guilty, the former mayor and ex-governor face between two to eight years’ imprisonment, EPPO said. The other accused face up to five years’ imprisonment. The court may also prohibit the accused from holding certain state or public offices.
The case was first reported to the EPPO by the European Anti-Fraud Office (OLAF), after suspicions of possible serious irregularities and fraud. OLAF also provided support to the investigation. The General Directorate National Police of Sofia conducted further investigative measures.
All persons involved are presumed innocent until proven guilty by the competent Bulgarian courts of law, EPPO said.
(Photo: OLAF)
