Podcast in English
Text size
Bulgarian National Radio © 2024 All Rights Reserved

Sparks flying between business and government

БНР Новини
Photo: BGNES

Since the beginning of the new political season in September, the state has taken a real offensive against representatives of Bulgarian business suspected and accused of money laundering, tax evasion, embezzlement of EU funds, forged public procurements, smuggling, illegal production of alcohol and cigarettes, etc.

The first target became one of the largest hoteliers in Bulgaria, Vetko Arabadzhiev, his family and his partners. The very fact that more than 5 million euros of unknown origin in cash have been found during searches in some of his hotels in the country is suspicious enough. While the authorities were investigating alleged crimes, the hotelier and his wife remained quiet in their villa on the Cote d'Azur in France. It is not known where they are at the moment, but they are not in Bulgaria. According to investigators, the Arabadzhievs are involved in illegal business activities and the money found in their offices was not earned in an honest way.

After the hotel industry, authorities targeted alcohol production business. The owner of the second largest distillery in this country in the town of Karnobat, Minyo Staykov was detained and his factory for the production of concentrated alcoholic beverages and wines was thoroughly searched in order to find evidence of illegal production and evasion of taxes. One of the most prominent Bulgarian businesswomen, Petya Slavova, was luckier with a "routine" customs inspection of her wine cellar "Black Sea Gold".

The scandal between one of the largest construction companies in Bulgaria - GP Group and Prime Minister Boyko Borissov is also part of the list of law enforcement actions, as after media articles about embezzlement of EU funds were published, the PM ordered the company removed from the implementation of all projects funded by Brussels.

All of these actions by the authorities against alleged illegal practices of the big business in this country indicate that there are problems in relations between business and authorities. It is not yet clear what they are, who and why is causing them, or if crimes were actually committed. It is clear, however, that the tightening of measures against the gray economy, corruption, and frauds has good effects on the government’s image at the moment. In Bulgaria no one loves the rich, as the opinion that their wealth was not accumulated in an honest way prevails. From this point of view, the government rating must definitely rise. It is a different topic that such scandals, accusations, arrests, searches, etc. occurred in the past, but to this day there have been no real big businessmen convicted. It is no coincidence that Brussels considers one of the weakest spots in Bulgaria to be justice, which cannot be relied upon to solve complicated cases and to judge in accordance with the law. Bulgaria needs a fair, open, law-abiding business, but business also needs stability and respect on the part of the authorities.

English: Alexander Markov


Последвайте ни и в Google News Showcase, за да научите най-важното от деня!
Listen to the daily news from Bulgaria presented in "Bulgaria Today" podcast, available in Spotify.

More from category

The model of EU subsidies distorts agricultural production in Bulgaria, the director of the Institute of Agrarian Economics says

In the space of 15 years, from 2005 until 2020, 75% of the farms in the country have disappeared – from 500,000 in 2005 down to 132,000 in 2020, said Prof. Dr. Bozhidar Ivanov, Director of the Institute of Agrarian Economics at an international..

published on 10/31/24 9:39 AM

Business climate in Bulgaria worsens in October

In October 2024, the total business climate indicator decreased by 5.6 percentage points compared to September, dropping from 22.5% to 16.9%. The index declined in all monitored sectors, the National Statistical Institute announced. In industry, the..

published on 10/30/24 1:36 PM
Petar Ganev

Institute for Market Economics: The future administration of the country must make unpopular decisions

Petar Ganev , senior researcher at the Institute for Market Economics announced, for the BNR, the publication of their white paper of the Bulgarian economy – Unlocking growth: the road ahead after the election. “Concord should be sought and..

published on 10/30/24 10:41 AM