The Minister of Economy shall not have the right to appoint solely outside the established procedure the management bodies of the State Consolidation Company (DCC) and its subsidiaries. This is stated in the position of the DCC.
Here is the position of the State Consolidation Company:
“In connection with a statement by Minister Kiril Petkov from today, in which it is clear his intention to dismiss part of the Board of Directors of Vazovski Machine-Building Plants EAD, Sopot (VMZ) and to remove the company from the structure of the State Consolidation Company “(DKK) EAD, as well as to request the resignation of the Executive Director Yasen Spasov, DKK EAD makes the following clarifications:
The management bodies of DCC EAD and its subsidiaries may be appointed only through a special procedure pursuant to the Public Enterprises Act and the Regulations for its implementation. In this sense, the Minister of Economy, as the principal of DCC EAD, has no legal right to make such decisions alone and outside the established procedure.
In a letter dated August 18, 2021, DKK EAD acquainted Minister Petkov in detail with the case at VMZ, requesting his support for its resolution. The management of DCC EAD is confident that with joint efforts and as a result of the measures already taken, favorable development will be achieved according to the guidelines of the principal.
The criteria for dismissal of the Board of Directors of VMZ Sopot, listed in the Law on Public Enterprises, are the following:
Art. 24. (1) The contract for management and control of a manager or of a member of a collective body for management and control of a public enterprise shall be terminated ahead of time in case of:
death;
filing an application for exemption;
objective inability to perform his duties for more than 6 months;
conviction for an intentional crime of a general nature;
incompatibility with the requirements under Art. 20 and Art. 23, para. 2;
serious violation or systematic non-performance of official duties;
entry into force of an act establishing a conflict of interest under the Anti-Corruption and Confiscation of Illegally Acquired Property Act.
(2) Except in the cases under par. 1, the contract may be terminated ahead of time and in case of dismissal due to non-fulfillment of the set indicators in the approved business program.
The same criteria are valid when making decisions for dismissal of members of the Board of Directors of DCC EAD, as well as of any public enterprise. At the same time, the Board of Directors of DCC EAD is the only body that has the legal right to dismiss those holding the position of “Executive Director”, as well as to elect new members.
Regarding the intentions of Minister Petkov to withdraw VMZ Sopot and other companies from the holding DKK EAD, we draw attention to the fact that the existence of DKK EAD as a structure that manages companies of strategic importance for the country through an independent Board of Directors is the only guarantor. that these enterprises will remain independent of changing political interests at all times.
The management of DCC EAD is confident in the good intentions of Minister Petkov, who are behind the idea of companies from DCC EAD to be transferred to the Ministry of Economy. Unfortunately, however, the unstable political situation in the country and the potential possibility of even new early elections cannot guarantee that he will remain Minister of Economy in future cabinets. This creates a serious risk that the activities of enterprises important for the national security of Bulgaria will find themselves in a position of dependence on the decisions of successive political cabinets with different goals and platforms.
The management of DCC EAD highly appreciates the commitment of Minister Petkov to bring improvements and transparency in the activities of the holding and its subsidiaries. We consider as our significant omission the lack of proactive public communication about the activity of DCC EAD, which undoubtedly created in the Minister a feeling of lack of transparency in the activities of the organization and put him in a situation to draw conclusions about the results of DCC EAD on the basis of incomplete information. .
The management of DCC EAD will continue to provide full assistance to Minister Petkov, so that he gets to know the current team of the organization and to get acquainted in detail with all current projects and their history and results.
We believe in the conscientious dialogue and constructive work with the principal of DCC EAD – Minister Kiril Petkov, in the name of the best result for the national interest“.
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