Managing director of cigarette producer Bulgartabac Holding Hristo Lachev said that media reports claiming that the company diverted 500 000 leva through advertising campaigns were false.

Lachev presented the company's expenditure related to advertising and other investment.

Bulgartabac had no connection to Euromodels agency, Lachev said in connection to reports that contracts with Euromodels were used to divert money from Bulgartabac.

Lachev presented documentation showing that the most expensive advertising contract was for promotion of cigarettes worth 360 000 leva, VAT included.

On May 16 economic police inspected the building of Bulgartabac Holding in Sofia. The inspection was launched after Prosecution decided to look into the company's affairs in April.

Recently Bulgartabac was involved in another fraud scheme focusing on the names of National Investigative Service (NSI) head Angel Alexandrov and Economy and Energy Minister Roumen Ovcharov. Lachev said that Alexandrov asked him for a 150 000 leva bribe.