The Chair of Varna's Municipal Council, Borislav Gutsanov, has been listed in the city's “St. Anna” hospital with a serious case of pneumonia.

The news was published in the local media online outlet “Varna Tomorrow,” citing Gutsanov's attorney, who said his client's health declined in the last few days and he requested a medical exam.

The doctors inform Gutsanov's condition is very serious and he might have to stay at the hospital for at least a week.

According to the attorney, Borislav Zhelyazkov, Gutsanov's health condition could impose a change in his permanent detention measure. The case is scheduled for April 13, but the Municipal Council Chair might not be able to appear before the magistrates in person. Zhelyazkov says he also heart his client has pneumonia, but could not confirm the information 100%.

Gutsanov, a member of the Executive Board of the Bulgarian Socialist Party, was arrested on March 31 along with the Director of the Varna municipality ‘Auto Transport’ department, Pencho Penchev and Yoana Krasteva, the department’s Chief Accountant. Penchev and Krasteva were left under house arrest.

Businessman Daniel Slavov aka Dido Dunkata, suspected of organizing contraband cigarette channels in the Varna area, arrested during the same police operation codenamed “Jellyfish,” was also kept in custody. His Dutch business partner is being searched for by police.

The detainees have allegedly abused taxpayers’ money, namely for deals to purchase second-hand buses which were later sold to Varna's public transportation at much higher prices.

It became clear Friday that the city's prosecutor began an investigation in Gutsanov's bank accounts abroad while on Thursday they have requested from the National Investigative Office an old case against him. In 1999, Gutsanov was arrested and probed for an alleged draining of “Elite Bank,” which later declared bankruptcy. The charges were dismissed over lack of evidence.

Borislav Gutsanov has been a member of the Executive Board of the National Council of the BSP since November 2009, on which he is responsible for local government and regional policy. He was top of the BSP list during the municipal council elections in 2007 and was soon elected as Chair of the Varna municipality council. During the 2009 general elections Gutsanov was second on the BSP list for the Varna region behind party leader and ex PM Sergey Stanishev.