Bulgaria Ex-Defense Minister Faces 3rd Charge

Former Defense Minister, Nikolay Tsonev, faces 3 charges for signing many contracts that led to losses for the State. Photo by BGNES

Bulgaria’s Prosecutor's Office has begun a third probe against former Defense Minister, Nikolay Tsonev.

The probe stems from allegations that as principal of the military factories “Terem” he violated the law by increasing the company's capital by over BGN 38 M. The move has deprived the State, as sole owner of “Terem,” from BGN 19 M because instead of being divided as dividends, the profit had stayed within the company.

The charges against Tsonev include the wrongful use of budget funds and violations of the Budget Act and other acts. The Prosecutor's Office says that Tsonev has violated a decree of the Council of Ministers and the Code of the State's Rights in Companies with State Capital.

If proven guilty, Tsonev would face up to 3 years behind bars.

In November the Prosecutor's Office pressed 2 other charges against the former Defense Minister for signing deals that were unfavorable for the Ministry.

One of those contracts is the purchase of an US assembly line from Mic Industries for the building of hangars, warehouses, dormitories and others for the cost of BGN 13 M.

Tsonev is also probed for deals concluded as early as the 1999-2000 period, when he has been the Head of the “Supply Management” Directorate at the Defense Ministry.

Unprofitable contracts concluded by Tsonev involve the supply and the storage of food, technical equipment, and spare parts for the army leading to State losses on the amount BGN 1 M and USD 143 000.

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