The European Commission has terminated the payments for Bulgaria under the SAPARD Program, which were meant for Measure 2 - improving the processing and marketing of agricultural and fish products.

This becomes clear from a letter of Jean-Luc Demarty, Director of the EC Agriculture and Rural Development Directorate, to the Bulgarian Government. The letter was provided to the public by MP Yane Yanev from the opposition United Democratic Forces coalition.

The sanction is imposed until the end of the investigations of alleged frauds with funds under Measure 2 of the Program. The termination of the payments also has to do with Bulgaria's serious problems with the absorption of the funds in 2007, and the considerable amounts of money that need to be absorbed in 2008 before the end of the SAPARD program for Bulgaria.

According to MP Yane Yanev, Bulgaria is going to lose not less than EUR 100-150 M as a result of the current EC measure. He added that the Commission started the procedure of requiring back the funds that had already been absorbed by the beneficiaries.

Yanev said this resulted from the fact that the European Anti-Fraud Unit (OLAF) and other EU institutions found that a number of firms such as the meat processing factories Rodopa Veliko Tarnovo and Chubra, which got EU money for new equipment but bought old and cheaper technologies instead.

Yanev added that if the beneficiaries did not return the SAPARD funds, the money would have to be paid by the national budget.

"We believe this is a huge scandal which will delay the absorption of funds for the rural areas. This means that there is an enormous amount of corruption in the mechanisms for absorbing EU money", the opposition MP said.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!