During the independent review and analysis of the case, it has been found that the credit contracts with the two companies valued € 31,8 mln. violate directly the BDB statute. According to the statute it is expressly forbidden to lend credits to political parties and connected persons. The case of Gergov and his companies fall within the category of connected persons – he is a member of the Executive Board of the Bulgarian Socialist Party as well as owner of the majority shares of the capital of the two companies.
In the signal submitted to the Bulgarian National Bank as the independent regulator of the banking system, and the Prosecutors’ Office, it is requested further check on the legality of the credit agreements as well as of the actions and acts of the supervisory and auditing bodies of the BDB, given the fact that Gergov’s companies are the largest borrowers from the only stately-owned bank in the country.
According to the documentation analyzed, the procedure of receiving credits by the two companies collides with the rules of their internal statutes given the fact that they are connected persons. On the side of the bank, the standard procedures of risk assessment have not been followed: it has appeared that the company receiving the credit has not complied with the requirement for financial reporting for the last two years before the crediting.
The ACF expects the responsible institutions will work to clear all remaining doubts with respect to the political influence of the crediting operation of the BDB and will continue to follow and evaluate the quality of the investigation process.
Credit agreements of the Bulgarian Development Bank (BDB) with companies owned by Gergov (the government being a minority shareholder)– “International Fair Plovdiv” JSC and “Sunny Day Residence” JSC – violate both the banking rules and official statutes of the companies. The ACF legal experts have analyzed the case and all relevant documents and signaled competent authorities for further supervision and investigation – the Bulgarian National Bank and the Chief Prosecutors’ Office, as well as to the ministries which exercise supervision and control over the companies.