Bulgarian Ex-FinMin to Be Formally Indcited on Wednesday

Former Finance Minister Simeon Djankov has contacted the prosecution after reports he is facing an indictment over the sale of state-owned assets in an energy company in 2011, authorities say.

Djankov is to appear in the investigative unit of the Sofia City Prosecutor's Office later on Wednesday, the Chief Prosecutor's Spokesperson Rumyana Arnaudova has told NOVA TV broadcaster.

He will be charged with abuse of office over the same deal which brought former Economy and Energy Minister Traycho Traykov an indictment with charges of abeyance.

Allegedly, Djankov harmed the interests of Bulgarian pensioners by transferring the money received after the deal to a newly set up State Consolidation Company (DKK EAD).

The sum was supposed to be set aside in the State Fund for Guaranteeing the Stability of the State Pension System (SFGSSPS), also known as the Silver Fund.

By not adding the funds to SFGSSPS and making sure the earnings will be allocated to the budget, Djankov was responsible for abuse of office, according to the prosecution.

DKK EAD was set up at the proposal of Djankov and Traykov and other then ministers may also be inquired as part of the investigation to establish how the decision was made to create the company.

As Finance Minister, Djankov insisted the funding received from privatization deals should not be transferred to the Silver Fund, but kept as available budget funding and a number of state-owned entities should therefore be added to DKK EAD, which should sell them and give the money as a dividend to the state.

The company was inactive for years. However, the outgoing Economy Ministry says it has turned DKK EAD into a company facilitating the management of assets it controls.<...