Black List of Companies Abused EU Funds to Be Prepared

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Black List of Companies Abused EU Funds to Be Prepared

Deputy Prime Minister Meglena Plougchieva told a news conference on Friday here that there are some EU-funded projects that might fail.

The analysis has shown a serious delay in the construction of an incinerator and the fault, according to Plougchieva, is of the Environment and Water Ministry. The 19.5 million euro worth
project is implemented under the Phare programme and the memorandum expires in August. A schedule is prepared to compensate the delay, however it would be almost impossible to save the funds, BTA reported.

The waste water treatment plant in Pazardjik (Southern Bulgaria) is another problematic project, where the contractor bears the responsibility for the non-performance of the 10 million euro worth project.

There are some risky projects in the fields of environment and transport, including the construction of flue gas desulphurization plants for units 5 and 6 of the Maritza East TPP, the water cycle projects for Varna, Shoumen, Sliven, Kyustendil and Smolyan, the construction of the Lyulin Motorway and of the Plovdiv - Svilengrad railway, Plougchieva said.

"We shall suggest to Plougchieva to introduce a chapter in the Penal Code, which will treat, in particular, violations related to fraud in absorption of European funds and the executive budget," Deputy Finance Minister Dimiter Ivanovski said.

A black list of the companies that have abused money from the European funds will be compiled. The list will include names of companies, which have made violations regarding the absorption
of the EU funds. Such companies should be brought to court and sentenced. The list will also include individuals, who have participated directly in the management of such companies, Ivanovski added.

An early warning list will include names of controversial companies, which have not been sentenced, but there is some doubt about their correctness yet. This list would not be public.

According to Ivanovski, the penal code should provide for concrete sanctions regarding abuse of money from European funds. For example, a penalty might be between one and 20 years divestment of rights to access to European or national public funding, Ivanovski said.

Photo: BGNES

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