The economic transition in Bulgaria through the prism of privatization and the transformation of state property into private is marked by some of the most dubious approaches that benefit certain circles and groups of people, writes “Labor“.
Two of the parties represented in the current parliament, namely the DSB and the BSP, are at the root of these robberies. The Bulgarian citizen witnessed workers’ managerial privatization, cash privatization of many operating enterprises for BGN 1 or USD 1, as well as mass privatization through vouchers started in 1996.
Of the enterprises distributed to workers and managers, 2-3 from the field of mechanical engineering are currently working on the territory of the country. Of the industrial giants sold for next to nothing for $ 1 and a debt commitment, there is currently 1 company operating that has happened to a real owner.
Privatized enterprises through mass privatization still exist, but they were acquired without money from privatization funds, which in the first stage only managed people’s vouchers.
As a result of the bankruptcy and privatization of the banking sector, the labor-managerial privatization, the privatization for 1 lev or 1 dollar and the privatization with the vouchers of the citizens, certain oligarchic circles close to the rulers in these periods benefited.
However, in this long period of transition and looting, no one can afford to encroach on companies that are important for national security or are bearers of specific know-how important for Bulgaria.
All these enterprises, which are important for the state, the legislator includes in the so-called “prohibition list” under Article 3, paragraph 1 of the Privatization and Post-Privatization Control Act (PCPA).
The preparation of the biggest robbery of national wealth
Wealthy economic and oligarchic circles close to Kostov’s party and heirs of “successful” leaders such as Rumen Gechev from the period 96-97 created their Canadian descendant Kiril Petkov and through the president installed him as caretaker Minister of Economy to encroach on the most valuable state-owned enterprises in the country.
This week, he announced his intentions to begin plundering the national treasure. On August 31, Kiril Petkov announced that “DCC is redundant and must go into liquidation.” What does this actually mean? With the act for announcing a liquidation procedure of the company, the entire governing body is released and a liquidator is appointed.
In this case, upon announcing liquidation, the Agency for Public Enterprises and Control shall issue a consent under Art. 28, para 6 of the PCPA and from that moment the Privatization Act does not apply to the assets of the terminated company. The provisions of the Commercial Law concerning the liquidation procedure shall apply. Thus, it turns out that according to Art. 269, para 1 of the Commercial Law the liquidator, appointed by Kiril Petkov will represent the company and will have the rights and obligations of its executive body.
According to Art. 268, para. 1 of the Commercial Law, the main obligation of the liquidator is to complete the current transactions, to collect the receivables and to convert the remaining property into money. Thus, it turns out that the liquidator of DCC must convert the property into money, ie sell the company’s assets.
DCC’s property and method of sale
DCC’s property includes some of the most important factories for national security. These are VMZ Sopot, Avionams and Niti Kazanlak. The military plant in Sopot employs nearly 4,000 workers, who also support the development of the region. Avionams fulfills NATO orders and must subsequently provide support for the newly purchased fighters from the Bulgarian army.
NITI Kazanlak maintains the know-how and developments of almost the entire military-industrial complex, implements important projects and is a major partner of VMZ Sopot. All of them are included by the National Assembly in the so-called “prohibition list” under the PCPA.
In addition to the military-industrial complex, the duties of the liquidator, appointed by Kiril Petkov, will include the conversion into money of other important companies, part of the national wealth of Bulgaria. This is LB Bulgaricum, which with its bacteria for Bulgarian yogurt for almost half a century celebrates Bulgaria in Japan, and now in many other countries in Asia.
According to the Commercial Law, the future of the National Institute for Research of Wine, Spirits and Essential Oils will also be on sale. He is a key partner of the Commission for Consumer Protection and law enforcement in the study of illicit alcohol.
The institute is also the legal successor of the State Laboratory “Bulgarian Rose”, which certifies the best Bulgarian rose oil, which goes for export and preserves the so-called state seal for this activity.
The looting approach chosen by oligarchic circles and Kiril Petkov is very clever, because the liquidation of the DCC will circumvent the Privatization Act, as well as the “ban list” for the sale of the most strategic sites. The transactions will be carried out by a liquidator, quickly and at his discretion.
The period is also very well chosen. Kiril Petkov will probably soon declare DCC in liquidation, as he has already stated. Thus, during the next official cabinet, when there is no National Assembly, the liquidator will be able to quickly sell the most valuable state property, which even people like Ivan Kostov and Rumen Gechev did not dare to encroach on.
The list of DCC’s assets includes many other companies from the so-called “prohibition list”, as well as attractive assets, including shares in Sofia Tech Park, which are likely to be liquidated.
The goals of the legal scheme for liquidation of DCC are clear, because otherwise one of the other procedures for transformation of the company, prescribed in the Commercial Law or reduction of the capital, etc., would have been chosen. The goal is clear – termination through liquidation and conversion of property into money.
Is the liquidator already clear?
Kiril Petkov has appointed a new director of the DCC. This is Anastas Gogov, with whom they partner in the protests. But besides that, he is also the owner of the company with a capital of BGN 10, High Achivers EOOD. The subject of activity of the company is “coaching trainings, focused on coaching solutions, executive coaching, life coaching and any other type of coaching …..”
The “high achievements” in all types of coaching of the probably future liquidator of DCC are expressed in revenues between one thousand and 7 thousand levs over the years.
Probably the same will be the income from the sale of the national wealth. Similar are the successes of Gogov in his company Ditma Ltd., where for the first and last time he filed a declaration in 2017 that he does not operate. Such is the situation in his next company Human Value EOOD, where a declaration for 2019 was last submitted and it is stated that no activity is carried out.
The most successful company managed by Gogov is Management Board Ltd., which in 2018 has a revenue of BGN 80,000. Now this man with this high corporate experience runs a billion-dollar company, and will soon be its liquidator, as Kiril Petkov expects.
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