The European Public Prosecutor's Office (EPPO) in Sofia has charged four individuals in connection with a €94.5 million rail fraud case. The funds were allocated for the design and construction of a signaling and telecommunications system on the Plovdiv-Burgas railway section, part of a project funded by the European Union (EU).

The indictment involves a consortium of four companies, including two managers from an Italian company and a manager from a Bulgarian firm. Among the accused is a former director of the National Railway Infrastructure Company (NRIC). Three of the defendants were granted bail set at €50,000, while the fourth defendant received a €5,000 bail. The Bulgarian manager is also prohibited from leaving the country.

According to the EPPO, the companies involved in the consortium provided false information to the NRIC to secure the public procurement contract and EU funding. The consortium claimed that one of the companies had experience in building global mobile communication systems for railway transport, which helped them win the tender. However, none of the companies had the required qualifications.

The EPPO further reported that the NRIC director was aware that the consortium’s information was false but signed the contract nonetheless. Additionally, despite the consortium's declaration not to hire subcontractors, they later employed a company that had previously been excluded from the procurement process due to technical shortcomings.

The project in question was related to the modernization of the signaling systems on the Plovdiv-Burgas railway, initiated in 2021 under the leadership of Eng. Krasimir Papukchiyski, the then Director General of the National Railways Corporation. The European Structural and Investment Funds had stated that the project aimed to ensure smooth operation of international rail transport along key European corridors and improve safety.

The EPPO, an independent body established to protect EU financial interests, launched its first investigation in Bulgaria in January 2022, three years after its creation in 2019. The institution plays a pivotal role in investigating and prosecuting crimes involving the misuse of EU funds.

Sources:

• Bulgarian National Radio (BNR)
• Radio Free Europe Bulgaria
• European Public Prosecutor's Office (EPPO)