Galabovo Mayor Misled the Court in the Case of Journalist Venelina Popova

Is it possible for a municipal authority to enter a partnership with a private investor without prior information about their joint investment project? According to a decision of the Administrative Court – Stara Zagora, the answer appears to be ‘yes’.

However, the Anti-Corruption Fund Foundation (ACF) analysed the case and found that the mayor of Galabovo Municipality had provided the court with misleading information that defies common sense. In turn, the court uncritically accepted the mayor’s arguments, depriving citizens of their right to be informed and disproportionately sanctioning a respected investigative journalist.

The case concerns a project to build an 80-megawatt incinerator burning RDF fuel. To implement this, the municipality decided to changed the designated use of 485 decares of pasture and agricultural land.

At two extraordinary sessions (on 25 January and 12 February 2024), the Galabovo Municipal Council voted to change the designated use of six municipal plots with a joint area of 262 decares and to grant building rights to Systek Invest Ltd. The company was a joint venture between Galabovo Municipality  (with a 40-per-cent stake) and the private company Systek Energy Ltd., owned by German citizen Cenk Karakaya. According to official data, Systek Energy had been established a few months prior to the municipal council sessions. The company had no economic activity in 2023, nor any assets.

In addition, the Municipal Council allowed Systek Invest Ltd. to purchase another 176 decares of private land adjacent to the municipal plots. On 28 March 2024, the council also approved a design assignment to amend the municipality’s land use plan.

Journalist Venelina Popova is a long-time correspondent of the Bulgarian National Radio in Stara Zagora and an author at the independent regional journalism platform Za Istinata. In August 2024, she asked the mayor of Galabovo, Nikolay Tonev, about the capacity of the incinerator, the planned technology of the facility, the origin of the RDF fuel, and the measures envisaged to control emissions from incineration. Popova requested access to Karakaya’s investment proposal and inquired whether his company had any relevant experience and whether the origin of his funds had been verified.

Mayor Tonev refused to provide the requested information, and the journalist appealed the refusal in court. On July 23 this year, Judge Zlatko Maznikov of the Administrative Court – Stara Zagora rejected the appeal, repeating the mayor’s arguments that the requested information had not been available at the time of the request and was not stored at the municipality.

In fact, the investment proposal was submitted to the municipality by Deputy Mayor Barakov before the extraordinary meeting on 25 January 2024. This document constitutes information of public interest and falls within the scope of the Access to Public Information Act.

“The information is missing from the municipality’s website and was unjustifiably denied to Venelina Popova. In addition, the mayor misled the court and should be investigated by the responsible authorities,” said Lora Georgieva, legal expert at the ACF. “The question also arises as to how the judge in the proceedings accepted the argument that it makes sense for the municipality to partner with an investor without carrying out any due diligence concerning the investor’s profile, their capacity, and the specifics of the investment proposal.”

Furthermore, Judge Zlatko Maznikov ordered Popova to pay the municipality’s legal fees of BGN 1,000, a sum significantly larger than the amounts typically awarded in such cases.

“With his decision, Judge Maznikov has achieved the effect of a SLAPP – unfounded and abusive proceedings which aim to exert a deterrent effect on a journalist’s work,” said Georgieva.

The actions of Galabovo Municipality and the Regional Inspectorate for Environment and Water (RIEW) – Stara Zagora are the subject of another legal dispute, pending before the Supreme Administrative Court. In April 2024, the municipality notified RIEW – Stara Zagora of its intention to change the land use classification of 17 plots (at least 13 of which are planned for the incinerator) from “uncultivated area” and “farmland” to “clean manufacturing”. The change is subject to assessment of the need for an environmental impact assessment. As is evident from their decision from 12 June 2024, the director of the RIEW – Stara Zagora accepted that an environmental assessment was not necessary because “the plan does not envisage specific construction works and activities that would lead to permanent irreversible physical changes to the area” and “will not lead to the emission of harmful substances into the atmosphere due to the absence of activities involving the release of emissions.”

“It can be concluded from the decision that Galabovo Municipality had not provided RIEW – Stara Zagora with any information about the investment project and the planned incinerator,” said Georgieva. “On the other hand, the regional inspectorate should answer why it did not ask about the reason for changing the land use classification of almost 500 decares of agricultural land.”

Several environmental organisations – such as Greenpeace Bulgaria, Za Zemiata and the Association of Parks in Bulgaria – as well as citizens appealed the decision of the regional inspectorate. The appeal was filed with the Administrative Court – Stara Zagora, which rejected it on 6 December 2024.

According to Judge Mihail Rusev, the decision of the municipal council of Galabovo concerned only “preliminary consent to change the land use classification of agricultural land for the construction of a production facility and technical infrastructure,” and it was unclear whether there actually would be any changes to the municipality’s land use plan and whether the investment proposal would be implemented.

Such conclusions are concerning, since the municipal council’s decision from 25 January 2024 explicitly states that the proposed change to the classification of the plots is made to accommodate the construction of a thermal power plant using certified fuel from solid municipal waste (RDF) and its adjoining infrastructure.

At the same time, according to Judge Rusev, the envisaged development “will not differ from what is typical for the region – a widely represented industrial energy sector“.

Galabovo is notorious for its poor air quality, and the so-called “widely represented industrial energy sector” – more precisely, the coal-fired power plants in the region – is the main source of air pollution. In 2022, the Court of Justice of the EU ruled against Bulgaria precisely because of the poor air quality in the municipality of Galabovo.

“The main question for the court and the public authorities should be how any planned new industrial activities would affect air quality and human health,” Georgieva said.

ACF has sent questions about the new incinerator to the mayor of Galabovo, RIEW-Stara Zagora, and the Regional Health Inspectorate – Stara Zagora, and calls on all citizens concerned about nature and their health to follow suit.

“The case raises serious questions about the ability and willingness of the local authorities in Galabovo, as well as the environmental and health authorities in Stara Zagora, to apply the principles of good governance and transparency, as well as – unfortunately – the court’s capacity to sanction failure to comply with the law and protect the rights of citizens,” said Boyko Stankushev, director of the ACF.