Following the mass resignation of the directors of Kremikovtzi, Bulgaria’s largest steel mill, at the end of January, the factory’s supervisory board appointed a whole new conscription of managers on February 5.

Former chief executive director Alexander Tomov received the position of strategies and global markets department director, while the new executive director was Jagannadham Guntupalli, Focus news agency reported.

Rammohan Bhave was appointed financial director. The new human resources director was Mitta Ja and the new technical issues and technical development department director was Stoyan Pirlov. Plamen Stoyanov received the position of production director, Petko Georgiev deliveries director, Ashvak Ahmat sales and marketing department director and Santano Kumar Nath planning director.

Former executive director Tomov said that his new appointment to senior executive director was “much more important”. “I do not want this switch to be made a big deal of. This question has only business dimensions and no others,” Tomov said.

During the last week of January the factory was put up for sale, as reported by The Sofia Echo on February 1.

Three main pretenders appeared on the scene, in the form of Ukrainian billionaires Kostyantyn Zhevago and Rinat Achmedov, American corporation US Steel and, later on in the game, Pramod Mittal’s older brother Lakshmi Mittal, Bulgarian-language Dnevnik daily reported. Pramod Mittal is the current owner of the steel mill, who, following the sale announcement, decided to put the deal on standby and transmitted deceptive information about whether there would in fact be a sale.

However, the only company that had a specific interest in the deal was Zhevago’s, which declared financial engagements and on January 30 negotiated the deal with Bulgaria’s Prime Minister Sergei Stanishev.

According to Deputy Minister of Economy and Energy Nina Radeva, Mittal desisted from selling Kremikovtzi because of the low offers he received. Instead of selling, he hired an external finance-juridical advisor, who would, in several months, recommend to Mittal what to do with the steel mill.

Meanwhile, on February 6, Bulgarian-language Standart daily reported that United Democratic Forces MP Yane Yanev brought to the newspaper’s editor’s office a copy of an invoice, which proved that in 2006 Tomov signed the invoice for $125 000. He did not have the right to do this, Standart claimed.

In the document Tomov stated that he had fulfilled his duty at Kremikovtzi up to June 2006 to collect $12.5 million for the factory’s needs. However, he did not specify where he found the money, requesting all the while to receive one per cent of the amount, as well as for the money to be transferred to a bank account in Bulgaria.

According to Yanev, the invoice was evidence of one of the ways for internal money to be drawn out of Kremikovtzi. He categorically said that Tomov had violated the law because as a physical body he did not have the right to sign such a document. In addition Yanev said it was not clear what kind of taxes Tomov had paid.

“The amount should be at least $250 000 to $300 000,” Yanev said, because of other invoices that he accused Tomov of signing.

Moreover, the party Law, Order and Justice said in a declaration on February 5 that the opposition would request a vote of no confidence in the Government because of its inability to cope with corruption. Yanev also said he would send his investigation foundlings to the European Commission.

Furthermore he called on the arrest of Mittal, Tomov and the whole of Kremikovtzi management. According to him, the Serbian government requested an Interpol investigation on Mittal because of fraud with the Serbian industrial metallurgical factory.

Kremikovtzi responded to these statements that at the moment that the destiny of the factory was to be decided, these “irresponsible and untrue accusations are due either to competitive economical interests or to Yanev’s aspiration for media publicity”.

Meanwhile, Kremikovtzi workers kept on protesting. On February 6 about 3000 people took part in the protest, according to BTA news agency.

“We want the stabilisation of the enterprise, investments and payment of the amounts due for food,” said Lyudmil Todorov, who is the chairman of the factory’s syndicates.
The management said it started paying the money due to the workers on February 6. Also negotiations on a 25 per cent salaries’ increase between the syndicated and Ja are promised to start in the coming days.

The syndicates further have requested a meeting with Sofia mayor Boiko Borissov, during which it would insist that Sofia municipality undertake clear engagement for the factory’s development, innovation and ecologisation. The workers categorically said the factory did not have to close down, as according to them it was not the reason for Sofia’s air pollution.

“Sofia’s air is dirtier than the air in Kremikovtzi. There are many potholes on the streets of Sofia that cause accidents. However, we do not insist that Sofia be closed down,” the syndicates said.