The period of May 29 - June 4, 1999 is marked by a significant fall in the number of publications on corruption in the Bulgarian national press. After last week’s boom (May 21-28, 1999) when a total of 132 articles on corruption were published, this week the number of stories on corruption dropped to 83. Of those 83 stories, 51 were informative articles whereas the analyses, comments and interviews were 32.

The distribution pattern for publications on corruption in daily newspapers was as follows: 24 Chassa - 13; Novinar - 10; Duma - 9; Sega - 9; Monitor - 9; Standart - 8; Pari - 7; Democrastia - 6; Trud - 5. The weeklies covered the topic of corruption as follows: Cash - 3 articles; Kapital - 2; Banker -2.

- The most challenging article on corruption this week is the analysis "Corruption Exists" by Emil Dimitrov, a former auditor and now a member of the Civil Movement to Fight Corruption, also called "Gergyovden" /24 Chassa, June 1/. The article is provoked by the disclosures of Prof. Dragomir Draganov published a week earlier in 24 Chassa daily under the title "Corruption set in authority." Destruction is the key word in the translation of the Latin word "Corrumpo" into Bulgarian, claims Dimitrov. The appointments of party functionaries to the boards of director of state companies has as its objective to feed the party elite - belonging to both the opposition and the ruling party. This is the way in which this elite turns into a caste that lives at the expense of the collapsing private and state business. The audit at the Customs, heroically defended by the minister of finance Muravei Radev, found evidence of personal enrichment, of document fraud, of activities that had caused enormous damages to the state, of interest-free loans and sponsorship being provided to specific persons and companies as well as of other violations of the law. According to Emil Dimitrov, there is only one way to fight corruption and this is by civil resistance. “I am ready to accept every kind of assistance - personal involvement, financial contributions, information, on the basis of which I will draft monthly reports on corruption that will be sent to the media and to all interested institutions in Bulgaria and abroad,” says Dimitrov.

- The political parties. Mechanisms to finance the pre-election campaigns of political parties in Bulgaria are examined in an analysis by Rumiana Strugarova published in Novinar daily of June 3 under the title "Local coalitions to become hostages of UDF money." It is well known that party coffins are the ideal harbor for assets of unclear origin. In most cases the favor that “the donor” is doing pays back under the form of state procurement, concessions, licenses as well as preferable treatment at public biddings. According to insiders, the ruling UDF party already has at its disposal 800 billion leva to finance its forthcoming electoral campaign In turn, the BSP relies on the "red" mayors for financial injections. The red mayors are expected to do their best to place public procurements with red businessmen and to insure municipal property with insurance companies sympathetic to the red cause.

- The economy. Banker weekly of May 31, 1999 reports about a conflict among the various lobbies in the Privatization Agency in a story entitled “The Privatization Agency Is Trying to Play a Trick to Two Ministries, the Court and Creditors.” “Who is interested in closing down the Privatization Agency?,” the author of the story asks. According to rumors, the idea to close down the Privatization Agency was the result of a personality clash between two teams: Zahari Zhelyazkov - Christo Bisserov and Alexander Bozhkov - Asen Dulgerov. The news about a conflict of interests between the two groups was first spread last summer. At that time the first serious friction between the executive director of the Privatization Agency, Zahari Zhelyazkov, and the chairman of the Supervisory Board of the Privatization Agency, Asen Dulgerov, appeared. The reason for the friction was the selection of a foreign consultant on the privatization of Bulgartabak Holding. Since the Supervisory Board of the Privatization Agency has the last say in privatization deals, they are frequently delayed or cancelled. When a deal is concluded, this is a signal for a victory of the team Bozhkov - Dulgerov.

An affair involving the procurement of computers by the Customs is described in an investigative report by Christie Petrova published in Cash weekly of June 3, 1999 under the title “The General Directorate of the Customs Announces a Tender for Computers that Have Already Been Purchased.” On May 25, 1999 the General Directorate of the Customs announced a tender for the procurement of computers. Interested companies were given only 5 days to place their bids. According to author, though, the computers in question have already been purchased. Informed sources told her that 4,000 IBM-made PCs designated for the General Directorate of the Customs had been imported in the country at the beginning of the year. The PCs were to become part of the integrated computer system that had to be installed at the Customs two years ago. One important question still remains unanswered and it concerns the name of the person who has received “the commission” for this large supply of PCs. If one admits that the traditional 5% commission was in force, this means that somebody put into his pocket about $200,000. The attitude of the ruling UDF party towards what is currently happening at the Customs resembles that of an ostrich. Instead of punishing the guilty individuals, the UDF sends them to other positions with similar or better payment. There are rumors that the current Director of the Customs, Plamen Minev, will be sent as a Bulgarian ambassador abroad.

- The judicial power. Standart daily of June 1, 1999 reports about wide spread corruption among magistrates in an article by Anton Kolev and Bozhidar Dimitrov entitled "Filchev Attacks the Anointed.” According to the authors, the reshuffle at the Office of the Attorney General will be followed by similar measures at District Prosecutors’ offices. A pile of documents containing signals about corrupt and incompetent legal decisions already lies on the desk of the Attorney General, Nikola Filchev. One of the most flagrant cases has been that of the prosecutor from Dupnitsa, Ivailo Vassilev, who is disliked by the entire city. The prosecutor from Pleven, Iskra Ganeva, has blocked legal proceedings in 283 cases.

- Monitor daily of June 3, 1999 reports about unfair competition in the tenders organized by the municipality of Sofia for taxi shuttle lines in the capital. The investigative report by Teodora Bozhinova entitled “Revolt of the Taxi Shuttle Line Drivers” examines the results from the tender conducted by the municipality of Sofia for 34 taxi shuttle lines in the capital. Representatives of well established taxi companies believe that the company that did best at the tender, Klarina SPS, had inside information about the requirements of municipal officials. Klarina SPS had an unfair advantage due to the participation in the company of several well connected individuals, including the son of the transport minister, Wilhelm Kraus, a close relative to the prominent Bulgarian footballer, Emil Kostadinov, and the chairman of Peugeot’s Bulgarian dealer, Stoyan Zhelev. Klarina SPS has purchased 60 new Peugeot buses with most of the vehicles arriving in Sofia by the time of the tender. This means that Klarina owners were sure of their success in the tender, commented Plamen Nachev, owner of the rival company Rolita 97.

- Education. Prof. Evgeni Alexandrov and Prof. Nikola Velikov, who had been fighting for years for the presidential position at Slavonic University, quickly reached an agreement after the appearance of the first reports that the University could be closed, reads the analysis by Yoanna Gandovska and Tania Petrova published in Sega daily of June 1, 1999 under the headline "A Quiet Action at Slavonic University.” Then the two presidents hurried up to do what they had been doing for years - to drain the financial resources still remaining at the university. Presently most of the bank accounts of various departments are frozen. In fact, there are enough funds only for current expenses and to pay the staff wages. Nobody knows what happened to the remaining billions of leva. The University annual revenues only from students’ fees amount to 4 billion leva. There have been donations as well.

- Sport. Novinar daily of May 31, 1999 reports about large-scale corruption in Bulgarian football in a story by Stanil Yotov entitled "Bulgarian football - Dead According to the Screenplay ." "The organizers of the football championship - the Bulgarian Football Union /BFU/ silently witnessed all fixed-up matches and other unlawful agreements,” writes the author. The regular explanation provided by the football boss, Ivan Slavkov, and of the executive director of the BFU, Ivan Vutzov, is the lack of evidence.

- Bureaucracy. The pubic opinion links bureaucracy to corruption, claims Velichka Rangelova, Director of the Center for Analyses and Forecasts with Promiana Trade Union, quoted by Duma daily of June 1, 1999. There are 550,000 bureaucrats in Bulgaria despite the decline in the number of employees by 1 million for the last 10 years. According to Rangelova, the most serious problem facing the UDF government after two years in power is bureaucracy mixed with corruption. The position of Promiana is that if a new tightening of the belts is necessary, it should start with cutting down the fat from bureaucracy.

- Enrichment. Most often of all this form of corruption is linked to abuse of power. Cash weekly of June 3, 1999 reports about enrichment of ministers and deputy ministers in an article by Christie Petrova entitled "In Hissar UDF Purges its Ranks from “Dead Souls" on All Souls` Day". The resort town of Hissar continues to offer some lucrative privatization opportunities. This has led to rumors about the personal enrichment of some ministers and deputy ministers.

- Lobbying on behalf of specific interests. The MP from the Parliamentary Group of the Democratic Left /PGDL/ Tatyana Doncheva talks about corruption linked to lobbying in an interview for Pari daily of June 4, 1999 entitled "UDF Made Corruption its Creed."

Emil Harsev, a financier, when asked whether in his view the adoption of a Tax Procedure Code would put an end to the dominant position of debtors in Bulgaria (Novinar daily, May 31, 1999): "The lack of judicial practice is reflected in the low level of debt collection. Corruption is another big problem. The present situation will not be changed by adopting another Code..."

Prof. Dragomir Draganov in a reply to the question what kind of disclosures the Parliamentary Committee to Counter Crime and Corruption have made so far (Novinar daily, May 29): "If things keep going with the same preposterous aggressiveness on the part of the MP Ivan Kostov, the Bulgarian Euroleft will make public horrible facts of corruption."

Georgi Bozhinov, Deputy Chair of the Supreme Council of BSP (Duma daily, June 1, 1999): “The myth about the successful Sofianski will be destroyed. The enormous resources of the capital have been managed in a way that favors particular groups.“

Tatyana Doncheva, PGDL, when asked whether legal conditions have been created for the weakening of the judicial system and for the spread of corrupt practices (Pari daily, June 6, 1999): “First of all, premises have been created that will make the fight against corruption impossible. Secondly, this sets up prerequisites for unpunishability of persons from particular circles close to the government, who in fact will gain immunity. Thirdly, this makes it possible for the state to provide a cover-up for corrupt practices.”

Kolyo Paramov, an expert working for the Euroleft party (Novinar daily, June 6, 1999): “Presently the private business is engaged more with politics than with serious activities. Private entrepreneurs have to woo ministers, regional governors, numerous lobbies and their messengers instead of focusing on their business, on paying wages and taxes.”

Georgi Tambuev (24 Chassa daily, June 2): “...when the question comes to corruption and looting state property, there is consensus between the political parties. If Drago Draganov had wanted to be objective, he would have opened at least a little bit the door to corruption committed by BSP, by the Movement for Rights and Freedoms, by his own party [the Euroleft]... The person to blame for the collapse of the banking system is the former governor of BNB, Todor Valchev... ”Sapio” is one affair that has been covered mainly from a point of view adverse to the PM Ivan Kostov. In fact, the main person to blame on the Sapio affair is Yasen Zlatkov who comes from the Academy for Social Sciences, established to train communist party functionaries. Zlatkov had only on the surface adopted UDF identity...”

An international conference dedicated to the fight against corruption will take place in Varna, Bulgaria on June 19-20, reports Democratsia daily of June 3, 1999. The conference organizer is the non-govermental organization Coalition 2000. Participants in the conference will include representatives of the Council of Europe, USAID, the University of Glasgow, the International Development Law Institute, etc.

A specialized unit will exercise control over trustees, all daily newspapers of May 31 report quoting the Minister of Justice, Vassil Gotzev/Sega daily/. A week earlier the PM Ivan Kostov declared that many of the trustees appointed to insolvent banks were guilty of fund embezzlement.

The MP from the Euroleft, Dragomir Draganov, is drafting a Law on the Financing of Political Parties, reports Cash weekly. In an interview for the newspaper Draganov explained that according to the draft law various state bodies will be able to verify at any moment whether the lifestyle of a politician corresponds to the incomes he has declared.

A government committee will keep track of civil servants, reports Standart daily of June 4, 1999. According to the draft Law on Civil Servants, the committee will check for violations in appointing and promoting civil servants. The committee will have extensive rights, including the right to report to the prosecution office about breach of duties by state officials.

The Chairman of the National Assembly, Yordan Sokolov, asked the prosecution office to verify the conclusions in a report published by the National Audit Office that the law was violated when a contract for the construction of homes for MPs was signed by the previous chairman of the assembly, all daily newspapers of June 2, 1999 report. According to the report of the National Audit Office, at the time of the previous national assembly the parliamentary chairman signed a contract for the purchase of land and the construction of homes for MPs at prices that were twice as high as the current market prices. The contract resulted into significant financial losses for the National Assembly.

Thomas O`Brien, Resident Representative of The World Bank in Bulgaria, interviewed by Kapital weekly (May 29 - June 4), when asked whether he agreed with the statement that the corruption had become part of the daily business life in Bulgaria: "There is a serious progress in reducing the level of corruption in Bulgaria. Many things have been done to curb organized crime. The level of corruption has a significant impact on people and businesses in the country. The government and non-governmental organizations have to work together. We should act together and make joint efforts to tackle the problem."

“The stability in the Bulgarian economy is only virtual,” is one of the conclusions of a study of the problems facing Italian investors in the region of Southeastern Europe. The study has been conducted by the Infonet Institute and the World Bank representative office in Italy, reports Pari daily of June 1, 1999. According to the study, Italian investors are skeptical about official economic data published by the Bulgarian government. Italian businessmen acquainted with the local market have expressed the view that the political class in Bulgaria is corrupt. Racketeering is still present and the judicial system is slow and incompatible with the Italian system.

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