COCOBU delegation trip to Bulgaria

Press Release

COCOBU delegation in Bulgaria

1. Since the European Commission's decision concerning the withdrawal of the right to manage PHARE programmes from two Bulgarian agencies and interruptions/ formal suspensions of EU funds used for ongoing Cohesion Fund projects (ex-pre accession fund projects), Bulgaria has been in the middle of the attention.
2. I do not agree with those who condemn the whole country and declares that Bulgaria is the most corrupt country in the European Union. These people put up a smokescreen to conceal a relatively small group of people who rule the country by dishonest means. The present coalition government led by the Bulgarian Socialist Party, accused of corruption and organized crime (e.g. money laundering, buying of votes), is not able to end those illegal actions which concern EU money and is not capable of setting up  an effective, reliable, and transparent management and financial control structure. Especially because we have to take into account that many people with criminal nature have become public officials themselves. Networks of conflict of interest in the overall management of EU funds basically make it impossible to clear the system.
3. Although the European Court of Auditors in its 2006/4 Special Report had set the bells concerning the weak administrative and management capacity and a lack of national resources in Bulgaria, recent cases, monitoring and on-the-spot (audit) checks show that not much progress has been made.
   • Firstly, there is a lack of knowledge about EU rules and procedures (esp. public procurement procedure causes difficulties)
   • There is a huge fluctuation within the management structure therefore the basic know-how is very weak
   • Thirdly, the people working in the administration are quite low paid so bribing is a common practice
   • A real judiciary reform is still pending; it "hesitates to use enforcement powers to remedy irregularities and fraud by immediate recoveries"; the judiciary cannot show cases which could serve as a deterrent, for example using black lists, publicity etc.
   • The prevention policy and its supporting management are missing.
   • The national audit authority is weak and its independence is questionable.

4. In early October the COCOBU delegation visited some of the co-funded project sites in Bulgaria with the aim to have a good knowledge and understanding of the situation as well as to try to find a solution to remedy the present difficult position.
5. It is important to acknowledge the effort of the organizers that our delegation had the possibility to visit project sites which were successful as well as sites where complications/ problems occurred.  The authorities really tried hard to show us honestly the present state of play with the positive as well as negative sides.
6. Concerning the following cases, I really think that neither the Commission, nor the national authorities prepared and examined carefully the projects.

• Even after a delay in the implementation of the waste-water treatment plant in Balchik (ISPA) will not function for maybe another year because the sewage system will be finished only later.
• Darko AD ice -cream company in Sophia (SAPARD) was basically sold to a 3rd party after the beneficiary renovated and equipped the company from EU funds. 
• Construction of Laiulin motorway, Sofia Ring Road, Daskalovo Road junction (ISPA) raised the question of bribery of the Bulgarian government by the contractor.

In conclusion, the Bulgarian people should know that it is their Socialist government who is to blame for the suspension of the EU funds due to their lack of efforts to decrease significantly the number of suspicions and irregular cases.