Sixteen people have been arrested early on Thursday in the latest raid of Bulgaria's police against organized crime groups, code-named “The Untouchable".

The operation targets suspect members of a group for money laundering and tax crimes, which have incurred huge losses to the state, the Interior Minister Tsvetan Tsvetanov announced.

Talking to the Bulgarian National Radio, the Interior Minister said the suspects work in the energy sector and occupy high-level positions. He refused to disclose their names.

The 16 suspects are believed to have been linked to energy tycoon Hristo Kovachki, who is investigated on tax evasion charges.

“The operation is expected to cut a scheme to siphon off millions of levs in value-added tax from the budget, linked to energy companies,” Interior Minister Tsvetan Tsvetanov said.

The minister, who declined to say whether there are high-level officials involved, specified that some of the arrested will be released

Kovachki, whose party failed to win seats in July's parliamentary election, has diverse business interests, ranging from manufacturing to banking and from energy to retail.

After misfiring several times, Sofia City Court finally gave at the end of January the go-ahead of the trial against energy tycoon Hristo Kovachki, who is investigated on tax evasion charges.

Kovhacki owns the Thermal Plants "Maritsa-Iztok 3" in Dimitrovgrad and "Bobov Dol", several mines, as well as the heating utilities in Vratsa, Burgas, Veliko Tarnovo and Pleven, the grocery chain "Evropa" and the "Atomenergoremont" company.

Believed to be one of the richest men in the Balkans, Kovachki has denied any wrongdoing.

Bulgaria's new government is taking steps to root out the corruption and organized crime that have affected the country for years.

In February heavily armed anti-terror police burst into homes, bars and strip-joints to arrest 14 alleged members of a powerful crime gang in an operation, named "Octopus". They are suspected of extortion, drug trafficking, money laundering and tax fraud.

The raid was followed by another, code-named “The Fakirs”, which targeted car thieves. Along with “The Fakir” operation, the police also carried out a raid against members of the so-called strong-arm groups, who are believed to be involved in contract murders.

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