(Luxembourg, 11 October 2024) – The European Public Prosecutor’s Office (EPPO) in Sofia (Bulgaria) has formally accused the former mayor and the ex-governor of Varna, as well as two public officials from the Executive Agency Maritime Administration, in an investigation into possible fraud, reported by OLAF, involving the reconstruction of a fishing port.
The four are accused of forging official documents and submitting false information, in order to illegally receive EU funds for a €3.4 million project, co-funded by the European Maritime and Fisheries Fund.
At issue is a project to improve the infrastructure of an existing fishing port in the outskirts of Varna, submitted by the Municipality of Varna (the beneficiary). However, according to the investigation, such a port did not exist when the application for EU funding was submitted.
Our investigation indicates that, in order to be able to benefit from EU funds, exclusively dedicated to the improvement of the infrastructure of existing fishing ports, the beneficiary assembled several pontoons as floating piers, with the sole purpose of registering the site as an existing harbour. In addition, the beneficiary presented false information and did not include all the documents required by the national legislation to obtain the necessary certificates.
From rocks to harbour
According to the investigation, the plots included in the application as an existing port were in fact registered in the cadastral plan of Varna as rocks, sand and other type of buildings – not as a harbour. Based on the evidence, with the help of public officials from the Executive Agency Maritime Administration, the plots of land saw their characteristics modified as defined permanent usage “for a port” – thus misleading the Ministry of Transport, which issued a certificate attesting the operational suitability for a fishing port, despite the lack of multiple requirements defined by the national legislation. The fishing port was later formally registered by the Executive Agency Maritime Administration.
The case was first reported to the EPPO by the European Anti-Fraud Office (OLAF), after suspicions of possible serious irregularities and fraud and OLAF also conducted a complementary investigation under EPPO's supervision. The General Directorate National Police of Sofia (ГДНП) conducted further investigative measures.
The estimated damage to the EU budget is approximately €2.8 million (BGN 5 603 035.97), with an additional estimated damage to the national budget of €675 475 (BGN 1 321 115.78).
All persons involved are presumed innocent until proven guilty by the competent Bulgarian courts of law.
The EPPO is an independent public prosecution office of the European Union. It is responsible for investigating, prosecuting, and bringing to judgment crimes against the financial interests of the EU.