Bulgaria Finance Minister Sends Energy Holding to Prosecutor

Business » FINANCE | November 27, 2009, Friday // 15:03| Views: | Comments: 0
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Bulgaria Finance Minister Sends Energy Holding to Prosecutor: Bulgaria Finance Minister Sends Energy Holding to Prosecutor Bulgaria's Finance Minister, Simeon Djankov (center), accuses previous cabinet in giving without any sound basis, BGN 700 M to the Bulgarian Energy Holding (BEH). Photo by BGNES

Bulgaria's Finance Minister, Simeon Djankov, had sent to the prosecutor the report of the Agency for State Financial Inspections regarding the Bulgarian Energy Holding (BEH).

According to Djankov, BEH had been given, without any sound basis, BGN 700 M from the previous cabinet.

BGN 300 M have been spent on the project to build a second Nuclear Power Plant (NPP) in Bulgaria - “Belene,” while the remaining BGN 400 M were given for “investment intentions” including a healing plan for Sofia's troubled heating utility “Toplofikatsia.”

Djankov says he is questioning why BEH received funds to purchase equipment for “Belene” before the establishment of the joint company between Bulgaria's National Electric Company (HEK) and the German RWE.

“Why at times of global economic crisis the Bulgarian taxpayer's money is spent on a project with an obscure financial model and without an analysis of its economic profitability?”, Djankov is quoted as saying when explaining why he has sent the report to the prosecutor.

In addition, on November 23, the Finance Minister assigned the Agency for State Financial Inspections with the task of conducting another additional audit of BEH and NEK and ways the BGN 700 M were spent.

In response, the leader of the Bulgarian Socialists and former Prime Minister, Sergey Stanishev, says that one must make a difference between state budget and fiscal reserve.

Stanishev further points out that his cabinet had a fiscal budget surplus of 3% of the Gross Domestic Product, at times of economic crisis and wished the new government at least similar results in 2010.

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Tags: Simeon Djankov, BEH, NEK, Sergey Stansishev, NPP, Belene NPP
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