Relative of Pernik Municipal Official Awarded Bridge Reconstruction
In August 2017, Pernik Municipality awarded a contract worth BGN 368,982 (VAT included) to a local company, Via Intelego Ltd, for the reconstruction and rehabilitation of a bridge over the Struma River.
The project was financed via Operational Programme “Regions in Growth” 2014-2020 of the European Union.
Via Intelego’s managing director, Ivo Gadzhov, is the first cousin of the deputy mayor for construction in Pernik Municipality, Vladislav Karailiev. According to the Public Procurement Act (the law was amended after the tender was opened), companies managed by the relatives of officials within the awarding authority were prohibited from participating in tenders such as the one in Pernik. The same restriction was specifically mentioned in the documents submitted by all participants in the public procurement procedure. When submitting their offer, each participant had to declare they were not related to any executives at the awarding authority.
On 23 Aril 2019, ACF filed reports with the Regional Prosecutor’s Office Pernik and the Public Financial Inspection Agency (PFIA). A report about a possible conflict of interest was also filed with the Commission for Counteracting Corruption and the Forfeiture of Illegally Acquired Property (CCCFIAP).
Four months later, Gergana Malinovska, prosecutor at the Regional Prosecutor’s Office – Pernik, decided not to investigate the case, citing written statements by Gadzhov, declaring that at the time the bid documents were being prepared he had focused on two issues – whether his company had the capacity to deal with the project and how to provide the best possible technical offer.
On 13 June, PFIA said it would initiate a financial audit as and when there was sufficient capacity to carry it out.
On 4 September 2019, ACF contested the regional prosecution’s decision in front of the District Prosecutors’ Office – Pernik. On 24 October 2019, District Prosecutors’ Office – Pernik confirmed the decision of the regional prosecution. ACF looks forward to actions by CAFIAP and PFIA.