Bulgarian Audit Office Reveals Unauthorized Agriculture Bonuses

An audit of the Agriculture State Fund has discovered past payments of unauthorized bonuses, conflict of interest, and irregularities in processing projects. Photo by BGNES

The Bulgarian National Audit Office has uncovered the payment of more than BGN 2 M in bonuses within the Agriculture State Fund in December 2008.

The figures have been included in the NAO audit of the Agriculture Fund for the period January 2008 - June 2009.

Kalina Ilieva, the current Executive Director of the Agriculture Fund, stated that the payments were made without the authorization of the then Executive Director, and without complying with the internal regulations of the Fund.

The largest bonuses had been divided among its employees and consultants of the Department of Fisheries and Aquaculture - an average of BGN 20 000, even to some personnel who had barely worked on small projects.

According to the audit, only 8,7% of the funds under the Program for Rural Development were actually used. The audit also revealed that the processing of individual projects from submission to approval took up an average of 237 calendar days,

Deadlines for processing an ordinance during the same period had been met in only 25% of the verified files. Irregularities were also found with procedures related to the Public Procurement Act, which had been conducted without placing specific requirements on the economic and financial situation of participants.

SFA has also announced that, as a result of verification of conflict of interests, the Executive Director of the Fund has ordered the removal from office of 18 employees.

During the audit of SFA all employees were required to re-sign declarations of conflict of interests. Also, employees were prohibited from conducting any private consultancy work on projects.

Five violations by staff regarding the management of SFA and SAPARD Program have been sent to the prosecution, Executive Director Kalina Ilieva stated.

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