The accumulated loss from the medical institution until June 2021 reached BGN 69.8 million.
The Ministry of Health has published an excerpt from an audit report on the financial condition of Alexandrovska Hospital after its management by the former Minister of Health Kostadin Angelov in the period 2013-2020.
According to them, the medical institution ended 2012 with a positive financial result and has no overdue liabilities, and in 2013, Kostadin Angelov was appointed by the GERB government as director of the hospital.
Only for the last 1.5 years of Angelov’s rule (the period 01.01.2019 – 30.06.2020) the hospital accumulates losses in the amount of BGN 10,621,000. The accumulated loss until June 2021 reaches BGN 69.8 million.
As a result of the lasting trend of net losses realized by the medical institution, the equity decreased significantly, as from BGN 22.8 million at the end of 2016, it decreased to BGN 3.9 million by the end of 2020. More than half of the the debts are to suppliers, reported by the Ministry of Health.
According to the data of the health department as of 2019, the liabilities of the medical institution were BGN 36,691,873.10, and the interest and fees on overdue liabilities amounted to BGN 8,875,977.86. In the next year, the debts to suppliers are already BGN 41,634,922.54, and the interest and overdue fees – BGN 8,451,891.12. For the first half of 2021 the debts already increase to BGN 42,078,564.14, and the interest and overdue fees are BGN 28,476,398.60.
The increase in liabilities to suppliers for interest and fees by nearly BGN 20 million. due to the fact that Angelov extended the arrears by signing agreements for rescheduling the obligations with the supplier companies.
Contrary to commercial logic, in negotiating the rescheduling of the debt, the hospital not only did not reduce it, but undertook new obligations in the form of interest in extremely large amounts. Why does a company that has to pay penalty interest for non-performance of its contract agree to reschedule this obligation and pay additional interest?
The following contracts and agreements for rescheduling the obligations stand out, with aggravating commitments for penalties for delay undertaken by Alexandrovska Hospital:
– Company P ….. F … DZZD – in addition to interest for delay, an additional 12.5% penalty interest has been agreed on it, annually on the unpaid part of the obligation;
– Company S ……. EOOD – apart from the overdue debts, the hospital
must pay BGN 30,000 per month for each overdue payment;
– Company S …. T …… AD – 10% interest for delay and additional 10%
on the outstanding part of the rescheduled liabilities;
– Company G … K … SD – The basic interest rate plus 15 points on an annual basis for each day of delay. (Under the same contract, however, the supplier owes only a 5% penalty for non-fulfillment of the commitment.);
– Company M ….. S ….. B …. EOOD – the interest amounts to 17-23% on an annual basis.
The analysis shows a lasting trend of difficulties for current repayment of obligations. For years, Director Angelov has entered into unprofitable rescheduling agreements, which have increased the hospital’s debt.
Instead, against the background of negative interest rates in the banking sector and the possibility of negotiating bank loans with interest rates of 2-3 percent, he was able to significantly reduce debt to suppliers.
The former director of Alexandrovska Hospital not only put her in a difficult financial situation, but now her fate depends on the goodwill of her creditors, the Ministry of Health concludes.
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