The scandal of the guesthouses, which turned out to be houses and hotels of children, in-laws and other relatives of empowered persons is growing. It has emerged that Antoan Porozhanov, son of the former Director of the State Fund Agriculture (SFA), the body in charge of distributing the European Union (EU) funds, and current Minister of Agriculture, Rumen Porozhanov, who has approved the scandalous houses, is among the auditors of the SFA. Deloitte’s audit has reassured Brussels because in 2015 it has not detected the massive abuses that are now shaking the political establishment.
The guesthouses scandal is a sequel to #ApartmentGate and began with Bivol’s revelation of a luxury villa of the now-former Deputy Minister of Economy Alexander Manolev, built with European money. The approval of the subsidy happened during Rumen Porozhanov’s term as head of the SFA, when Alexander Manolev was Deputy Minister of Tourism. Manolev resigned and is charged with crimes against the financial interests of the European Union.
After Brussels raised eyebrows because of this, mass inspections of all guesthouses were launched in Bulgaria, including by the Prosecutor’s Office, the SFA, the Ministry of the Interior and the National Revenue Agency (NRA). Until now, the inspections have led only to another resignation – that of the Deputy Director of the SFA, Ivanka Bagdatova-Missova. It turned out that her own phone number has been listed as the one for contact for a guesthouse built under the European Union (EU) Rural Development Program (RDP) by the Mayor of the resort village of Yundola, Mehmed Mustafa Mestan.
On Monday, April 30, Bivol published several scandalous cases of guesthouses registered to straw persons behind whom are mayors of the ruling party Citizens for European Development of Bulgaria (GERB), of the party mostly representing the Muslim minority – Movement for Rights and Freedoms, (DPS), municipal councilors, and even a person connected with serious organized crime. So far, there is no information that the people in question have lost the confidence of the parties they represent. There is no information about charges pressed against Yanaki Chervenyakov, a former senior employee of the SFA, who registered a guesthouse to his mother-in-law. Bivol’s investigation into the guesthouses, which grew into a detailed database of all houses built with subsidies under the RDP and their owners, started in 2016 precisely with this case. This investment in data journalism now pays off with exposure of more and more guesthouse scandals.
Dad distributes money, son audits
In 2014, Bulgaria risked losing EUR 1.65 billion under the RDP due to the lack of a Certifying Authority. Three public procurement contracts, launched by the former Minister of Agriculture Dimitar Grekov and chosen by an auditor, were declared illegal. The then-caretaker Minister of Agriculture Vassil Grudev carried out the direct negotiation procedure, which led to the selection of Deloitte as the auditor.
For the audit of direct payments and the RDP, Deloitte received from the State budget over BGN 0.5 million. At the same time, Antoan Porozhanov had been an auditor of Deloitte, where he had started work in 2012, as he, himself, states on LinkedIn and on the website of his company “IRP Management”.
The Deloitte report presented to the European Commission in 2015 is not known for containing data on massive violations of the RDP. Clearly, this concealment of the outrages with the allocation of European money by the SFA has been successful and has reassured Brussels.
Subsequently, the professional career of Porozhanov Jr. has advanced in the field of agriculture, through consultancy companies, which consult beneficiaries of the SFA. Bivol learned that because of the potential conflict of interest, a signal has been submitted to the Committee for Combatting Corruption and the withdrawal of illegally acquired property (KPKONPI) (sic). It has been closed on grounds of the wise conclusion that Antoan Porozhanov is his father’s son, but there is nothing wrong with him advising and auditing the programs his father manages and from which he allocates billions.
Currently, the former head of the SFA Rumen Porozhanov, who has approved the financing of most guesthouses of politically exposed persons (PEPs), does not intend to resign as Minister of Agriculture. In his defense, he points out that checks have been carried out and everything is legal on paper. Such are the conclusions of the lenient report of Deloitte, where his son Antoan Porozhanov has worked.
Or, as all PEPs that have gotten into the ugly scandal with the cheap apartments, undeclared terraces and free villas say: “Everything is correct, everything is legal, there is no conflict, no abuse”.
Meanwhile, Bulgaria is set on the path to the new tranche of European funds that Porozhanov Sr. will distribute and Porozhanov Jr. can again audit. Why not? The boy is obviously inherently competent and has already gained experience.
***
If you find this article useful, support our work with a small donation.
Pay a Bivol Tax!
We will highly appreciate if you decide to support us with monthly donations keeping the option Monthly
Извършвайки плащане Вие се съгласявате с Общите условия, които предварително сте прочели тук.
Please, read our Terms and conditions here.
Биволъ не записва и не съхранява номера на Вашата банкова карта. Плащанията се обработват през системата Stripe. Даренията за Биволъ с банкови карти се управляват от френската неправителствена организация Data for Reporters Journalists and Investigations - DRJI.
Bivol is not recording the number of your bank card. The card payments go through Stripe. Card donations for Bivol are managed by the French NGO Data for Reporters Journalists and Investigations - DRJI.
Извършвайки плащане Вие се съгласявате с Общите условия, които предварително сте прочели тук.
Please, read our Terms and conditions here.
Биволъ не записва и не съхранява номера на Вашата банкова карта. Плащанията се обработват през системата Stripe. Даренията за Биволъ с банкови карти се управляват от френската неправителствена организация Data for Reporters Journalists and Investigations - DRJI.
Bivol is not recording the number of your bank card. The card payments go through Stripe. Card donations for Bivol are managed by the French NGO Data for Reporters Journalists and Investigations - DRJI.
IBAN: BG27 ESPY 4004 0065 0626 02
BIC: ESPYBGS1
Титуляр/Account Holder: Bivol EOOD
Извършвайки плащане Вие се съгласявате с Общите условия, които предварително сте прочели тук.
Биволъ не записва и не съхранява номера на Вашата банкова карта. Плащанията се обработват през системата Stripe. Даренията за Биволъ с банкови карти се управляват от френската неправителствена организация Data for Reporters Journalists and Investigations - DRJI.
SMS код BIVOL
За да подкрепите с малка сума нашите разследвания и автори, можете да изпратите SMS на кратък номер. Ще получите с обратен SMS линк към нашия архив.
- Изпрати 1,2 лв. на номер 1851 с код BIVOL и получи достъп до Архивите на Биволъ
- Изпрати 2,4 лв. на номер 1092 с код BIVOL и получи достъп до Архивите на Биволъ
- Изпрати 4,8 лв. на номер 1094 с код BIVOL и получи достъп до Архивите на Биволъ
- Изпрати 12 лв. с два смс-а на номер 1096 с код BIVOL и получи достъп до Архивите на Биволъ
Сумите са с включен ДДС. Моля, имайте предвид, че това е най-неефективният начин да подпомогнете Биволъ, тъй като комисионната на мобилните оператори достига 60%. Ако имате възможност, използвайте някой от другите методи на плащане.
Криптовалути
За да ни изпратите биткойни сканирайте QR кода или използвайте един от двата адреса: Standard: 1EY3iwkPXiby6XFsyCcVPGZPYCGPbPeVcb
Segwit: bc1ql28g7qnvdmenrzhhc7rtk0zk67gg4wd9x9jmmc
- Powerful US Lobbyist Aids Businesses Linked to Sanctioned Bulgarian Lawmaker, Has Joint Company with Notorious Attorney - 8 January 2022
- Interview for FAKTI.bg
Assen Yordanov: If a lustration law had been passed, Bulgaria would not be in this state
- 19 November 2021 - After Peevski, the Magnitsky Act must target his puppeteers. #LUSTRATION is crucial! - 8 June 2021
This post is also available in: Bulgarian