OFFICIAL confirmation in a Privatisation Agency statement on January 16 that the agency was ready to sign the Boyana Film privatisation agreement did not end controversy surrounding the deal.
A 95 per cent stake - amounting to 446 426 shares - in Boyana is being sold to US firm Nu Image/Millennium Films.
Nu Image has pledged to pay 12.2 million leva and to follow this up by investing a further 30.5 million leva in the company. The decision on the privatisation was announced on the eve of the June 25 parliamentary elections, but went on hold after second-ranked bidder Bavaria Film formally objected, alleging irregularities in the tender process.
The Supreme Administrative Court, in an October ruling, gave the go-ahead for the sale. Nu Image and Bavaria said at the time that they would work together after the privatisation. At the same time, new conditions were added to the draft contract, including an agreement by Nu Image to extend the mortgage on Boyanas land in favour of the state by a further 10 years.
The Privatisation Agency supervisory board gave its approval of the deal on January 13, the agencys January 16 statement confirmed. This opened the way for the signing of the deal.
In a January 16 interview with Bulgarias Focus news agency, Boyana Film Centre director Evgenii Mihailov was quoted as saying that it was a perversion that the Privatisation Agency supervisory board decision was taken on January 13, which last year was named the Day of Bulgarias Film Industry.
Mihailov said that it was evident that there had been an agreement among Bulgarias government coalition on the deal some time ago. Evidence of this was the announcement of the signing of a long-term contract between Nu Image and a public relations agency.
They had obviously been sure that the privatisation deal contract would be signed, Mihailov said.
He said that the financial report on Boyana for 2005 would show results that were a record for the past five years, ending in a profit without debts or additional burdens.
Mihailov said that the Government had given away a good and profit-making company for nothing despite the opinion of Bulgarias most famed artists and figures working in the movie industry.
In a media statement, Culture Minister Stefan Danailov said that he had always been against the privatisation of Boyana Film.
Danailov said that he was surprised and worried by the Privatisation Agency supervisory council decision.
That the new owner was a producer would put it in a powerful position in relation to Bulgarian production companies, and was cause for concern among Bulgarian film producers who wanted services for their productions at acceptable prices.
In an interview with Bulgarian National Television, Privatisation Agency supervisory council chairperson Teodor Stoev said that the privatisation of Boyana complied with all legal requirements.
