EU fears Bulgarian criminals are defrauding funds - report

12:37 Wed 19 Mar 2008 - Elitsa Savova

European Commission has frozen funding under pre-accession aid programmes for Bulgaria over fears that organised crime in the country had created an entire system for defrauding European Union funds, Dnevnik daily reported on March 19, quoting sources familiar with talks between officials in Brussels and Sofia.

Worse yet, the EU executive body believed that the criminals enjoyed protection from officials at the highest level, the newspaper claimed.

EC cut off funding for Bulgaria under the Ispa (infrastructure), Phare (development) and Sapard (agriculture) pre-accession programmes, but is also stalling on signing projects that would be financed with structural funds under operational programmes for transport and regional development.

Brussels' suspicions that criminal schemes were protected by high-level officials grew after Bulgarian authorities showed almost no reaction to the results of an investigation by the European Anti-Fraud Office (OLAF), which uncovered an international scheme for defrauding SAPARD funds with Bulgarian participation.

OLAF representatives were afraid that the protection spreads across the high-levels of the judicial, executive, legislation and presidential powers, Dnevnik said.

Cabinet responded to OLAF’s suspicions saying that it planned to publish a list of all beneficiaries from EU funding programmes and their consultants on the internet. Another idea of the Cabinet was for non-government organisations to be included in the councils overseeing the implementation of EU-funded projects. Additionally, OLAF's Bulgarian partner, the Anti-Fraud Co-ordination Structure (AFCOS–Bulgaria), would no longer be subordinated to the Interior Ministry.

On March 18, police arrested Ivan Ivanov, deputy head of the Chief Directorate for Combating Organised Crime, in charges of abusing his power and disclosing classified information about ongoing police investigations. Although little information on the case was announced, it was seen as the consequence of the tip-off made last week by opposition member of Parliament Atanas Atanasov. The former counter-intelligence chief accused Ivanov of passing on classified information to a shady company.

Bulgaria’s problems with Brussels could become even more serious if it turns out that the shady businessmen, mentioned in the tip-off, have received money under the EU programmes, Dnenvik said. OLAF is still investigation other possible cases of malfeasances in Bulgaria under the SAPARD programme.

Comments

Comments by Jo King - 22:15 19 Mar 2008
	It’s about time… How many hotels on the Black sea have been build with that money, by suspicious people… were was the EU back then? I cannot believe how naive EU was in the last several years. I think it is about time for them to take the shades off and look the truth in the eyes. Oh well…, or at least try to do so. Agriculture…, are you trying to be funny? Have some of the people who gave the money, came to check what is done with the funds? Bulgaria is importing fruits and veggies from all its neighbors, fields are in miserable conditions… Keep funding the “new rich” of Bulgaria, they will steal the money and send you thank you note. Good luck. I couldn’t believe you actually annexed Bulgaria, enjoy having it… for all its worth. Jo King
Comments by mbkirova - 09:19 20 Mar 2008
	Dear EC, Please stop funding now until most of the Bulgarian government is replaced. Otherwise there will not be a patch of beauty or 'development' outside the hands of the mafia.
Comments by sam smith - 13:56 20 Mar 2008
	THE EU HAS DONE ALL IT CAN TO HELP BULGARIA TO BECOME A COUNTRY OF HOPE AND A COUNTRY OF PROMISE...BUT BULGARIA IS A COUNTRY OF NOTHING BUT FRAUD. I CAME HERE FROM AMERICA AND I'M AMAZED OF WHAT GOES ON IN BULAGRA. BULGARIANS ARE NOT WORTHY OF BEING IN THE EU OR MODERN COUNTRY. UNLESS IF THEY CHANGE NOT ONLY THE TOP GUNS BUT ALSO THE DAY TO DAY PEOPLE! MOST ARE FULL OF LIES AND HAVE NO RESPECT FOR TIME OR OTHERS. SORRY TO SAY BUT ITS VERY TRUE...I HAVE HAD HIGH HOPES THAT I MIGHT BE WRONG BUT SADLY I'M NOT...I THINK THE EU SHOULD TAKE BULGARIA OUT ASAP!
Comments by Andrew J. Kuhaida - 12:08 23 Mar 2008
	Thank God the people of Bulgaria have the European Union keeping watch over the country. The stories in the Sofia Echo are regularly describing corruption, fraud, environmental degradation, crimes by government officials, refusal to follow the law, et cetra. Every country that was under the totalitarian rule of communism has gone down the same path. I have seen what the years of a government ruling by produced in Russia over a 10 year period, in Slovakia, and now I see it while working in Iraq. Now is the time for the people of Bulgaria to be heeding and reading what those who expose wrong doing by corrupt government officials, greedy developers despoiling the beauty of the Rila Mountains, officials being bribed to allow uncontroled development on the Black Sea and robbing the ancient historical sites.s create. Grab a hold of that most prescious thing you now have:FREEDOM OF SPEECH. Learn and understand what RULE OF LAW means to the citizens government officials and developers: CRIME DOESN'T PAY. If enough people cast off their fear and others join them, eventually you can bury those primary relicts of totalitarianism--power and greed-- and realize that to govern in Bulgaria is to serve the PEOPLE of Bulgaria.