Source: Nova TV, archive
The contract concluded by the Bulgarian Development Bank (BDB) with the law firm “Jingov, Guginski, Kyuchukov and Velichkov”, where Lena Borislavova worked before entering politics, is to the detriment of the bank. This is according to a report of the State Financial Inspection Agency (ADFI), cited by “Voices”.
The agency has already sent it to the prosecutor’s office to investigate official crimes that, according to the inspectors, were present on the part of the bank’s management, which allowed the material interest of the financial institution to be damaged.
The subject of the inspection is the contract itself, its subject matter, the remuneration paid and the services received in return. The contract is concluded by BBR and the managing partner, but Lena Borislavova is appointed to manage the bank’s affairs in the law firm.
According to publicly disclosed information, the law firm received nearly 7,000 euros per month from the financial institution.
The State Bank has its own legal department which takes care of standard credit and guarantee agreements, employee relations and all other routine matters.
At the same time, the BDB uses the services of external firms when preparing international bond issues because they have experience in drawing up investment prospectuses and technical preparation of the issues.
However, according to the report, the benefits arising for the BDB from the contract with the law firm, Lena Borislavova, significantly lag behind the funds paid. There were days when the future head of the Prime Minister’s office Kiril Petkov and a future deputy did not appear at the bank, judging by the reading of her card upon entry, as well as apparently fictitious registrations, where the exit took place days after the entry, which suggests either the lawyer to have spent days at the bank, or to check out randomly.
The allegations in the ADFI report are a signal of violations, which are far from the biggest outrages that have taken place at the Bulgarian Development Bank. However, they confirm the appetites of the future (at that time) power to create business of close structures, as well as to provide high incomes to people they rely on, and subsequently join their ranks.
For its part, the BDB never became a classic development bank, even though Continuing the Change formed two governments in three years and constantly used it as chewing gum in their election platforms.
The prosecutor’s office was already checking the contract between BBR and the law firm, since the new management of BBR, appointed by Kiril Petkov in his capacity as acting minister of the economy, had signed it at a time when the new directors had not yet taken office. Thus, they did not have the right to legally represent the bank, but nevertheless the engagement generated costs for the financial institution.
Kiril Petkov himself is trying to speed up the procedure for the appointment of directors and supervisors of the BBR, trying to submit their names for approval by the BNB, before he even becomes a minister and the bank is formally entrusted to him as a responsibility.
When Kiril Petkov was acting minister of the economy, Tsanko Arabadjiev became the executive director of BBR, who is known to have been fired from another bank for failing to fulfill his duties. He appealed the decision to two courts, but they upheld his dismissal.
After his entry into BBR, several months follow, in which the bank grants exactly one loan and its activity practically freezes. Due to the revaluation of previously granted loans and guarantees, provisions are set aside and the bank accrues a loss of BGN 339 million.
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