European Prosecutor Files Case Against Varna Ex-Mayor for Non-Existent Fishing Port Scam

The European Public Prosecutor's Office (EPPO) in Sofia has filed formal charges against the former mayor of Varna, Ivan Portnih, the former regional governor Stoyan Pasev, and two officials from the Executive Agency "Maritime Administration" over alleged fraud involving the reconstruction of a fishing port. According to EPPO, the defendants falsified documents and provided misleading information to secure €3.4 million in European and national funds for a project intended to improve port infrastructure that, in reality, did not exist. The approximate damage to EU funds is €2.8 million (BGN 5,603,036), with an additional estimated impact on Bulgaria’s national budget of €675,475 (BGN 1,321,116).

Investigators determined that the site listed as a fishing port in the funding application was, according to Varna’s cadastral records, actually comprised of rocks, sand, and miscellaneous structures. To simulate a functioning port, the municipality had installed several floating pontoons, which were then used to justify the application. Officials from the Maritime Administration reportedly assisted in reclassifying these plots as a port, leading the Ministry of Transport to issue a certificate declaring the site operational, despite missing essential regulatory documentation. Subsequently, the port was officially registered.

The case emerged after the European Anti-Fraud Office (OLAF) flagged possible serious irregularities. Following OLAF’s signal, a joint investigation was conducted by EPPO, with the National Police carrying out additional investigative actions. If convicted, Portnih and Pasev face prison terms ranging from two to eight years, while the other two defendants could be sentenced to up to five years. The court also holds the authority to bar the accused from holding public office.

Portnih, a member of the GERB party, served as Varna’s mayor from 2013 to 2023. The European Public Prosecutor's Office, which oversees investigations and prosecutions of crimes affecting the EU’s financial interests, continues to lead the legal proceedings in this high-profile fraud case.