Sofia City Court (SCC) acquitted on December 6 former managing director of foundation Democratiya Plamen Iliev on accusations of financial misappropriation.

The court verdict ended a case against the foundation, which holds close ties to the United Democratic Forces (UDF). The case started under pressure of former chief prosecutor Nikola Filchev and was indirectly aimed against UDF leader and then Prime Minister Ivan Kostov, mediapool.bg said.

Iliev was accused of not fulfilling his professional duty, as described in the Law on measures against money-laundering, with the aim to "collect for himself and the foundation advantages worth 239 496 leva and undeclared taxes over this sum to the amount of 47 899 leva."

The court also acquitted Illiev on the accusation of drawing up official documents with fraudulent content. The documents in question were contracts for donations between the foundation and companies Veran and Bouket 2001.

Illiev was found not guilty on the accusation of deals with funds of which he was supposed to have known that they came from fraudulently drafted documents and with which seven cars had been bought for the foundation in May 2001.

The court rejected as unfounded the claim from the finance minister against Iliev to the amount of 47 899 leva, mediapool.bg said.

In his plea, prosecutor Stefan Milev said the case against Illiev should be dropped, as the accusation for document fraud became invalid in 2004 and that the preconditions for an acquittal were present.

Milev told journalists after the court hearing that the law obliged him to give up his accusatory role when evidence would show that a defendant had not committed the crime of which he had been accused. Graphologists which had been accepted by the court, said Illiev had not signed the contracts or the payment documents with which the money had been drawn, and he could not be held responsible for money laundering, Milev said.

What had become clear was that there was document fraud, but who committed it was unclear at this stage, he said.

The court's decision could be appealed within 15 days at the Sofia Appellate Court.