Police arrested 11 people in an investigation into a corruption scheme that drained money from a water utility through public procurement. The organised crime directorate GDBOP said on Facebook that the state lost millions of euros.
According to GDBOP, an organised criminal group has operated in Burgas and Sofia since February 2024. It was set up for profit to commit crimes by public officials. More than €6.6m (over €6.65m (13m leva)) without VAT and nearly €8.2m (nearly €8.18m (16m leva)) with VAT were paid under two of the contracts.
The contracts covered reservoirs for drinking water in several settlement systems. The works were accepted and paid for in full, even though they were done only on paper, to poor quality and not in full. The contracting authority and the contractor had agreed the procedures in advance.
In one system, additional agreements for unforeseen costs led to payments of more than twice the original price. Another contract was paid the same way, although the repairs were never actually made. Some work was priced per square metre. A stainless steel ladder was priced at €869 (1,700 leva), and making and fitting a PVC door to a water chamber at €1,636 (3,200 leva).
Most of the money spent reached people linked to the subject of the investigation. Investigators found gaps between the construction and repair work that was reported and paid for, and the real state of the sites handed over.
Police searched 7 private homes, carried out 24 inspections of crime scenes and questioned 38 people. They seized more than €20,000 in various currencies, investment coins, jewellery, watches, many documents, notebooks, electronic devices with information on the case, and ammunition of different types and calibres.
Tsvetan Mirchev, the former head of Burgas water utility "ViK – Burgas", is charged with taking part in an organised criminal group. He was released from custody in August. A few days ago, Burgas District Court refused to change his measure from house arrest to detention.