Anti-Corruption Institutions: Escalating Problems Sofia, 2021 The content of this publication represents exclusive responsibility of its authors and does not necessarily represent the opinion of the Konrad- Adenauer-Stiftung and its Rule of Law – South East Europe Programme. All rights reserved. No part of this book may be reproduced in any form or by any electronic or mechanical means, without permission in writing from the publisher, except by reviewers, who may quote brief passages in a review. Content Summary 6 10 Introduction Prosecuting High-level 14 Corruption Prevention and Ascertainment 32 of Conflicts of Interest 2020: Multiple Interests - Predominantly Local Conflicts Annex 1 54 Results of the Criminal Prosecution of High-level Corruption Annex 2. Results of the Criminal 105 Prosecution of Corruption at the Local Level Abbreviations ACF EC SCPO Anti-corruption Fund Foundation European Commission Sofia City Prosecutor‘s Office ACP ECHR SCtC Appellate Criminal Proceedings European Convention on Human Supreme Court of Cassation Rights and Fundamental Freedoms AFIAPA SJC Anti-corruption and Forfeiture of FIAPFSA Supreme Judicial Council Illegally Acquired Property Act Forfeiture of Illegally Acquired Property in Favor of the State Act SpCC APSCC Specialized Criminal Court Appellate Specialized JA Criminal Court Judiciary Act SPO Specialized Prosecutor‘s Office CAFIAP LLSGLA Commission for Anti-corruption Law on Local Self-Government SPOC and the Forfeiture of Illegally and Local Administration Supreme Prosecutor’s Office of Acquired Property Cassation LPS CC Local Police Station SSM Criminal Code Special Surveillance Means MoFA CFIAP Ministry of Foreign Affairs Commission for the Forfeiture of Illegally Acquired Property MoH Ministry of Health CHC Case to be Heard in Cassation MoI Ministry of Interior CIPAA Conflict of Interest Prevention and NBCSSM Ascertainment Act National Bureau for Control over Special Surveillance Means CP Criminal Proceedings NCAP National Council for Anti- CPACI Corruption Policies Commission for the Prevention and Ascertainment of Conflicts of PORB Interest Prosecutor’s Office of the Republic of Bulgaria CPC Criminal Procedure Code PPA Public Procurement Act CSA Civil Servants Act SANS State Agency for National Security CVM Cooperation and Verification SCC Mechanism Sofia City Court Summary 6/ Anti-Corruption Institutions: Escalating Problems 1/Prosecuting high-level corruption The present analysis summarizes the some of the defendants, for no apparent reason, and results of ACF’s annual independent there have been no press releases informing the public civic monitoring of the most significant about the latest developments. Moreover, it is already investigations of (alleged) high-level foreseeable that the charges against the defendants will Т corruption crimes in the Republic of be declared unfounded by the court. Bulgaria. ACF’s 2020 analysis titled “Anti-Corruption Institutions: Activity Without The turbulent year 2020 was marked by the launch- Visible Results” focused on examining 40 criminal ing of investigations against a cabinet minister and a cases from the period 2014 – 2019. The present study deputy minister, as well as against two of the Presi- will look at the development of the cases that had not dent’s advisors. Furthermore, the Prosecutor’s Office been completed at the time of publishing of last year’s conducted a rather cursory preliminary inquiry against analysis. It will also provide a review of five new cases Prime Minister Borisov on the basis of allegations of that originated in 2020. abuse of power, raised following the release of an audio recording in public space, on which could be heard a The verdicts on all cases of high public interest that voice, similar to that of the Prime Minister. The Pros- have been completed since last year are all acquittals, ecutor’s Office concluded that there was not enough which fixes the total number of acquittals at thirteen, evidence that a crime had been committed and decided set against only three convictions. This proportion is in not to initiate investigative proceedings. striking contrast with the overall percentage of convic- tions on all criminal cases in the Republic of Bulgaria, Compared to the results of last year’s study, the prose- which climbs closer to 100% every year. There is also cution of high-level corruption in Bulgaria has become a significant difference with the percentage of convic- even less effective in the period examined in the present tions achieved on all corruption crimes in the country. analysis. At first glance, the most significant problem The number of cases at the pre-trial phase of proceed- of the criminal justice system appears to be the lack of ings or with an unclear status is reducing; the two cases guilty verdicts; however, the analysis of the cases that concerning alleged corrupt behavior of senior public ended with acquittals demonstrates that the rule of officials in the energy sector — in relation to the Belene law in Bulgaria would have been undermined to a far NPP project and the deliveries/pricing of natural gas greater extent if the examined indictments had instead — have now proceeded to the trial phase. In both cases resulted in convictions. the Prosecutor’s Office has dropped the charges against Summary 7/ The leadership of the Prosecutor’s Office, and the proceedings against mayors and regional governors. Prosecutors’ College of the Supreme Judicial Council, The conclusions drawn from these cases reaffirm the continue to ignore the issues related to the prosecution tendencies identified following the examination of of corruption crimes of high public interest in the the main cases. The number of achieved convictions country. There are no established criteria for monitor- is negligible, and there are no prison sentences that ing the progress of corruption cases of high public in- have not been suspended. On the other hand, there are terest. Transparency continues to be applied selectively a number of acquittals based on unfounded charges; with respect to such criminal proceedings. there are inexplicable delays of the proceedings at the pre-trail stage; and there is a complete lack of official In addition, the present study reviews 18 significant information regarding the progress of the cases, despite cases of alleged high-level corruption at the local level the wide publicity given at the start of the investiga- in the last five years; they mostly include criminal tions. 2/Prevention and Ascertainment of Conflicts of Interest 2020: multiple interests - predominantly local conflicts With this study, the ACF continues its annual at the various institutional levels in horizontal and independent civic monitoring of the practices of vertical aspect. ascertainment of conflict of interest as part of alleged corrupt behavior at the high level and lower levels of In this report, we analyze the practice of the Anti- power. Bulgaria‘s legal and institutional framework on Corruption Commission, the Inspectorate at the combating corruption (outside its criminal aspects) SJC, and the Inspectorate at the Council of Ministers and the prevention and counteraction of conflicts for ascertainment of a conflict of interest in 2020 of interest was established in 2017 and entered into regarding persons holding public office. Notable is the force in 2018. Already then, the ACF constructively formal approach practiced by the authorities involved problematized the regulation regarding the structuring in exercising their powers on filed reports or cases of the new anti-corruption body, as well as the being reported in the media. There is often a lack of proceedings for ascertainment of a conflict of interest. comprehensive research on possible connections that Despite the renewed legal framework, the Bulgarian lead to influence and dependencies in the exercise reality still features a low level of public trust in the of official powers by persons holding public office. anti-corruption institutions; institutional inaction, It is necessary to upgrade the formal verification outside campaigns around the expected annual (in registers and databases) by making an analytical reports of the EC to assess Bulgaria‘s progress on the assessment of real existing connections, relationships, cooperation and verification mechanism, on judicial and dependencies. reform and the fight against corruption, as well as in the fight against organized crime; lack of visible results In 2020, CAFIAP conducted an inspection of a total in the fight against corruption and cases of conflict of of 292 reports of the presence or absence of a conflict of interest in the exercise of public power at the central interest. There is an increase in the reports for conflict and local level; lack of prevention in the fight against of interests received by the Commission, compared corruption and conflict of interest; lack of real action to the previous two years - by over 60 % compared to for the implementation of the anti-corruption strategy 2018 (119 reports) and by over 40 % compared to 2019 8/ Anti-Corruption Institutions: Escalating Problems (166 reports). The Commission issued 122 decisions, public office. The adopted decentralized and ascertaining a conflict of interest in 30 decisions, diffuse model concerning these persons leads to and not ascertaining a conflict of interest in 92. The contradictory practice and abuse of power. analysis of these 122 decisions can be divided into two • Restricting the persons holding public offices separate