Bulgaria FBI Find Large-scale Violations at Maritsa-Iztok Mines
Energy | March 30, 2010, Tuesday // 21:02| views
Bulgaria's Prime Minister, Boyko Borisov (c), visited the Maritza - Iztok energy complex Tuesday to find out about the situation involving alleged large-scale embezzlement on the spot. Photo by BGNES
Bulgaria's State Agency for National Security (DANS) has found violations in the Maritsa – Iztok mines for BGN 19 M committed only in the last 2 years.
The information was revealed during a joint press conference of Prime Minister, Boyko Borisov, and the DANS Director, Tsvetlin Yovchev, who were on a visit to the area.
The mines' management had rejected an offer for the purchase of new excavators from German companies for prices ranging between BGN 28 and 45 M while, at the same time, they invested BGN 16 to 30 M in repairs of old ones. So instead of purchasing 2 new machines, the mines repaired 3 old ones, and some of the work had never been done, Yovchev said.
Another BGN 14 M were paid for repairs of old rubber lines and contracts for another BGN 8 M have been signed in 2010. The invoices were made for new lines, but old ones have been repaired instead, with the transport expenses being pocketed.
BGN 1.7 M have been spent on other repairs in violation of the public tender laws by breaking down orders to amounts of BGN 60 000 each. In addition, the mines' management had done remodeling of vacation homes for employees despite the difficult financial situation – for BGN 10 M in 2008 and BGN 8 M in 2009.
The probe also established lack of control of the coal quality, except in the Italian managed Thermal Power Plant (TPP) “Enel Maritza – Iztok 1.” In many cases, the coal has been listed with much lower quality than the real one, triggering losses for the State.
Wages at the mines have been increased on the individual decision of just one person. The same happened with the order to increase the price of lignite coal by 17% which led to increase of the price of electric power by 6%, making Maritsa – Iztok coal much more expensive than the imported. All 3 TPP that use the coal are the main electric power supplier for the National Energy Company (NEK).
The results of the probe have been sent to the Chief Prosecutor, Borisov informed, adding the State-run companies are to undergo drastic changes after Energy and Economy Minister, Traicho Traikov, returns from his official visit to the US. The PM further said that selling State shares through the Stock Exchange might be an option if there are good price offers.
A total of BGN 2 160 B have been spent without having these resources in the State budget, according to Borisov.
“Tomorrow I have to pay BGN 65 M to the investor of the Nuclear Power Plant in Belene, another BGN 9 M for the laying of concrete at the construction site and BGN 31 M to the consultant, but I will not do it because I do not have the money,” Borisov said.
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