Bulgarian Arms Maker TEREM Banned from Export Deals

Business | December 17, 2002, Tuesday // 00:00

The chief executives of the eight branches of defence plant TEREM will be barred from signing contracts with foreign partners for some time. The ban cames as a part of deterrent value measures introduced by Bulgaria's Cabinet in the wake of the arms scandal involving TEREM's branch in Turgovishte. An investigation in the TEREM state-owned company was launched after the authorities seized parts for fighting vehicles to Syria exported by the Turgovishte unit. Bulgarian authorities intercepted a part of the shipments on the Bulgarian-Turkish border but another part has reached its destination. Terem Board of Directors was immediately sacked. The check in TEREM defence plant showed that the Bulgarian authorities have busted a channel for export of goods with potential "dual-use" goods that worked for six years, the spokesman of the government Dimitur Tsonev announced. A number of deals between the intermediary Poldis and Terem were sealed during this period. Over fifty contracts were signed between TEREM and the company.

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