SUPPORTING DOCUMENT Accompanying the  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL  On Progress in Bulgaria under the Co-operation and Verification Mechanism    BULGARIA: Technical Update
Date: 2010-07-20
Institutions: European Commission
Subjects: Bulgaria, EU control, cooperation policy, corruption, exchange of information, judicial reform, rule of law

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EUROPEAN COMMISSION 

Brussels, 20.7.2010 
SEC(2010) 948 

SUPPORTING DOCUMENT 

Accompanying the 

REPORT FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

On Progress in Bulgaria under the Co-operation and Verification Mechanism 

BULGARIA: Technical Update  

{COM(2010) 400 final} 

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TABLE OF CONTENTS 

1. Benchmark 1: Adopt Constitutional amendments removing any ambiguity regarding the 

independence and accountability of the judicial system .............................................. 4 

2. 

3. 

4. 

•  The National Assembly to adopt amendments to the Bulgarian Constitution 
•  The National Assembly to make necessary changes to the Judicial System Act 
•  The Inspectorate to be set up and functioning, first results to be published and evaluated 
Benchmark 2: Ensure a more transparent and efficient judicial process by adopting 
and implementing a new judicial system act and the new civil procedure code. 
Report on the impact of these new laws and of the penal and administrative 
procedure codes, notably on the pre-trial phase........................................................... 6 

•  Adopt the new Civil Procedure Code 
•  Adopt 

the  new  Judicial  System  Act  reflecting 

and the recommendations of the peer review experts 

the  amendments 

to 

the  Constitution  

•  Establish a monitoring system for all new codes 
•  Report at regular intervals on the findings of this monitoring process, notably as regards the pre-

trial phase, the execution of judgements and sentences 
•  Amend the relevant codes and legislation if necessary 
Benchmark 3: Continue the reform of the judiciary in order to enhance 
professionalism, accountability and efficiency. Evaluate the impact of this reform 
and publish the results annually ................................................................................... 7 

•  Establish  a  transparent  and  fully  functioning  decision  making  process  on  disciplinary 

investigations by the future Inspectorate with the Supreme Judicial Council (SJC) 

•  Ensure  complete  and  overarching  application  of  the  Code  of  Ethics  for  magistrates,  especially 

procedures for review, investigation and dismissal/prosecution for violations 

•  Monitor the application of the system of competitive examination for recruitment and performance 

evaluation of magistrates 

•  Annually publish findings of the evaluation of the reform of the judicial system, in particular on 
how  specific  problems  related  to  professionalism;  accountability  and  efficiency  have  been 
addressed 
Introduce random case handling software in the prosecution services 

• 
•  Enhance the training on the implication of these new laws 
Benchmark 4: Conduct and report on professional, non-partisan investigations b into 
allegations of high-level corruption. Report on internal inspections of public 
institutions and on the publication of assets of high-level officials ........................... 11 

•  Associate  Member  States'  experts  to  provide  assistance  and  guidance  as  regards  improving  the 

quality of investigations and reporting on this 

•  Streamline and coordinate the institutional set-up of bodies empowered to fight corruption 
•  Establish administrative arrangements to safeguard whistle-blowers  
• 

Implement  fully  the  legislation  on  the  independence  of  the  inspectorates  in  the  public 
administration and ensure more pro-activeness in their investigative role 

•  Report on the implementation of measures taken to prevent and fight influence in the investigation 
and prosecuting entities, in particular sustain cases of suspension/dismissal/initiation of criminal 
proceedings against alleged corrupt law enforcement bodies 

•  Ensure  the  establishment  of  a  credible  checking  mechanism  for  asset  declarations  as  well  as 

effective sanctions in case of false or inaccurate declarations 

5. 

Benchmark 5: Take further measures to prevent and fight corruption, in particular at 
the borders and within local government ................................................................... 12 

• 

Implement  disciplinary  sanctions  and  a  policy  of  zero-tolerance,  particularly  in  the  Veterinary 
Service, customs, the Road Executive Agency and other relevant services 

•  Establish electronic payment systems and a system of shifts at random for officers employed at the 

borders 

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6. 

•  Conduct at regular intervals audits and checks, publish the findings and ensure their follow-up 
•  Report on investigations into inexplicable wealth 
Benchmark 6: Implement a strategy to fight organised crime, focussing on serious 
crime, money laundering as well as on the systematic confiscation of assets of 
criminals. Report on new and ongoing investigations, indictments and convictions in 
these areas .................................................................................................................. 14 

•  Associate  Member  States'  experts  to  provide  guidance  and  assistance  as  regards  improving  the 

quality of investigations and reporting on this 

•  Hand over an action plan to implement the strategy to fight organised crime and implement it with 

reports at regular intervals 

•  Fully implement relevant legislation on confiscation of assets of criminals 
•  Report  regularly  and  audit  internally  the  new  and  on-going  investigations,  indictments  and 

convictions 
Implement the new legislation to combat money laundering 

• 

Note: 

Under  each  of  the  six  benchmarks,  several  issues  of  particular  concern  were  mutually  agreed  when  the 
Cooperation  and  Verification  Mechanism  was  created  in  December  2006.  These  issues  are  listed  above.  You 
may consult previous reports at: http://ec.europa.eu/dgs/secretariat_general/cvm/index_en.htm 

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1. 

BENCHMARK  1:  ADOPT  CONSTITUTIONAL  AMENDMENTS  REMOVING  ANY 
AMBIGUITY  REGARDING  THE  INDEPENDENCE  AND  ACCOUNTABILITY  OF  THE 
JUDICIAL SYSTEM 

During the period of two and a half years of existence, the Inspectorate has inspected 
all  courts  in  four  out  of  five  appellate  regions;  namely  Burgas,  Veliko  Tarnovo, 
Varna  and  Plovdiv.1  By  the  end  of  2010  the  Inspectorate  plans  to  complete  the 
scheduled  inspections  of  all  the  judicial  bodies  in  Bulgaria.  A  number  of  thematic 
and ad hoc inspections targeted specific subjects of concern2 and recommendations 
were issued thereupon. 

On  the  basis  of  inspections  carried  out  so  far,  the  Inspectorate  established  an 
overview  of  the  situation  within  the  judiciary  in  Bulgaria  and  identified  courts  and 
prosecution offices which warrant improvement. In cases where shortcomings were 
identified, the Inspectorate issued recommendations and followed up on compliance. 
The joint working group of the Supreme Judicial Council (SJC) and the Inspectorate 
established  in  December  2009  was  instrumental  in  ensuring  follow-up  to  the 
recommendations  of  the  Inspectorate  and  contributed  to  harmonising  disciplinary 
practice. In February 2010, the joint group was institutionalized as a Commission on 
the Analysis and Follow-up to the ISJC recommendations. The Commission oversees 
the  implementation  of  the  measures  recommended  by  the  ISJC  in  reference  to 
scheduled  inspections,  thematic  inspections  as  well  as  ad-hoc  inspections  initiated 
upon signals. Based on the findings of the ISJC's inspections in the appellate regions, 
the  Commission  suggests  measures,  whose  application  is  controlled  by  follow-up 
inspections. The increase in a number of follow-up inspections focused on qualitative 
analysis  of  court's  work  is  commendable.  The  efforts  to  ensure  follow-up  to  the 
findings  of  the  ISJC  respond  to  the  European  Commission's  recommendation  and 
should be continued. 

The  Inspectorate  reports  tangible  improvements  in  courts  where  the  Inspectorate's 
recommendations  have  been  applied  by  the  administrative  heads.  The  policy  of 
notifying  the  main  findings  and  recommendations  to  the  Supreme  Judicial  Council 
and  other  relevant  judicial  bodies  (in  addition  to  courts  and  prosecution  offices 
concerned) aims to unify and enhance professional standards within the judiciary. 
During  the  reporting  period,3  46  disciplinary  proceedings  were  initiated  by  the 
Supreme Judicial Council, out of which 6 were proposed by the Inspectorate, 10 by 
the respective administrative heads and 30 by the SJC members.  
Bulgaria  reports  a  total  of  70  proceedings  completed  in  the  reporting  period.4  This 
comprises  32  disciplinary  proceedings  initiated  before  August  2009.Disciplinary 

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In the reporting period, the Inspectorate carried out scheduled inspections of the Criminal Division of 
the  Sofia  Appellate  Court,  the  Plovdiv  Appellate  Region,  the  Pazardzhik  District  Court,  Smolyan 
District  and  Regional  Courts.  The  following  inspections  were  underway:  the  Sofia  Regional  Court, 
Civil College of the Sofia City Court, Varna Appellate, District and Regional Courts, Vidin District and 
Regional Courts, Belogradchik and Kula Regional Courts.  
Examples  of  thematic  inspections  include:  management,  organisation  and  administration  of  judicial 
bodies; control by administrative heads of correct application of new legislative provisions; non-unitary 
application of certain provisions of the Civil Procedure Code; enforcement order proceedings. 
August 2009 – May 2010. For any other periods referred in this report, precise dates are provided. 
Bulgaria  reports  the  following  disciplinary  sanctions  in  cases  completed  in  the  reporting  period: 
disciplinary dismissals (8 cases), dismissals from the position of administrative heads (5 magistrates), 

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measures  are  decided  by  disciplinary  panels  composed  of  randomly  selected  SJC 
members. They are based on individualised assessment and can be appealed before 
the Supreme Administrative Court.  

2. 

BENCHMARK  2:  ENSURE  A  MORE  TRANSPARENT  AND  EFFICIENT  JUDICIAL 
PROCESS  BY  ADOPTING  AND  IMPLEMENTING  A  NEW  JUDICIAL  SYSTEM  ACT  AND 
THE NEW CIVIL PROCEDURE CODE. REPORT ON THE IMPACT OF THESE NEW LAWS 
AND  OF  THE PENAL  AND ADMINISTRATIVE PROCEDURE CODES, NOTABLY  ON  THE 
PRE- TRIAL PHASE 

Bulgaria introduced amendments to the Penal Procedure Code (PPC) with a view to 
enhancing the efficiency of the penal procedure, in response to a recommendation by 
the Commission of July 2009. The amendments, submitted to the National Assembly 
in  November  2009,  were  adopted  in  April  2010  and  entered  into  force  on  28  May 
2010.5  

The  amendments  to  the  PPC  aim  to  simplify  the  penal  procedure,  reduce  its 
excessive  formalism  and  improve  the  celerity  of  judicial  proceedings.  One  of  the 
amendments  provides  a  possibility  to  appoint  a  reserve  defence  counsel  when  the 
defendant's  lawyer  cannot  be  present  at  a  hearing.6  This  amendment  is  designed  to 
prevent undue delays in hearings and can be applied by courts if there is an interest 
to carry out hearings within the stipulated deadlines. First instances of application of 
this procedure in cases of high public interest have been reported following its entry 
into force on 28 May. 

The  revised  PPC  extended  certain  investigative  powers  to  police  officers.  Data 
collected  under  the  Special  Intelligence  Means  Act,  witness  testimonies  and 
statements by defendants made before a defence counsel at the pre-trial phase as well 
as  evidence  collected  by  the  European  Anti-Fraud  Office  have  become  admissible 
evidence.  Another  amendment  introduced  the  possibility  (under  certain  conditions) 
to  conduct  hearings  of  witnesses  by  means  of  videoconference  or  telephone 
conference. 

The  new  PPC  streamlines  the  pre-trial  phase.  Under  the  current  provisions,  police 
officers submit collected evidence to the investigative police officers and notify the 
public  prosecutor.  The  requirement  of  a  sufficient  level  of  evidence  has  been 
abolished.  In  addition,  the  reporting  procedure  was  simplified  by  eliminating  the 
requirement for police to draw up a conclusion on the investigation. Prosecutors are 
now entitled to challenge the referral of cases back to the pre-trial phase. 

The revised PPC also enhances the rights of the parties in trial by including the right 
of defendants to receive translations of the main documents and extending the rights 
of  victims  in  pre-trial  proceedings.  The  revised  PPC  introduced  the  possibility  for 

reduction of remuneration (11 cases), demotion in rank (17 magistrates), referral to administrative head 
for sanction (14 cases) which resulted in 31 orders by administrative heads for admonition, reprimand 
or censure of magistrates. 1 proceeding was terminated. 
Three  provisions  regarding  the  creation  of  a  reserve  defence  counsel,  evidence  from  unidentified 
witnesses, eliminating the judicial review of investigations exceeding 1-2 years were challenged at the 
Constitutional  Court.  The  fact  that  the  Constitutional  Court  has  not  yet  pronounce  a  sentence  did  not 
have an impact on the entry into force of the provisions concerned. 
Article  94  paras  9.4,  9.5,  9.5  of  the  PPC  stipulate  the  procedural  modalities  for  the  appointment  of  a 
reserve defence counsel (a defendant can choose a reserve lawyer from a list provided by the court). 

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witness' testimonies of minors to be read out without the mandatory requirement for 
them to be examined at trial phase as well as a number of additional guarantees for 
the protection of under-cover agents and anonymous witnesses. 

The  above  mentioned  provisions  address  to  a  certain  extent  concerns  regarding  the 
administration  of  evidence  in  Bulgaria.  The  excessive  formalism  of  the  penal 
procedure  is  reduced  but  not  eliminated.  For  example,  spontaneous  declarations  of 
witnesses before the police, the investigating authority or a prosecutor have no value 
if not delivered in front of the accused party and its defence counsel or a judge. Such 
a  requirement  can  create  significant  difficulties  in  cases  involving  numerous 
witnesses and defendants.  

Bulgaria  reports  that  the  expedited  procedure  and  plea  bargaining  contributed  to 
quicker completion of judicial proceedings. Plea bargaining is reportedly used more 
frequently  than  the  expedited  procedure.  In  the  revised  Penal  Procedure  Code,  the 
provision  excluding  from  the  field  of  application  of  the  expedited  procedure  in 
relation to crimes resulting in death or serious bodily injury or committed in a state 
of  alcoholic  intoxication  (introduced  in  2009)  has  been  revoked.  If  the  defendant 
confesses and the court decides to apply the expedited procedure, the court is obliged 
to  apply  a  penalty  range  reduced  by  one  third.7  In  cases  of  serious  crimes  (e.g. 
murder), this may lead to imposing sanctions which do not correspond to the social 
danger of the committed crime. Bulgaria should continue to monitor and assess the 
implementation and impact of the new provisions.  

The  monitoring  system for the Penal, Civil and Administrative  Procedure  Codes is 
based  mainly  on  thematic  inspections.  Between  July  2009  and  May  2010  the 
Inspectorate to the Ministry of Justice inspected 10 courts on implementation of the 
Penal Procedure  Code regarding the duration of the trial phase in corruption cases 
and  judicial  practice.  Close  monitoring  of  the  effective  implementation  of  the 
amended  Penal  Procedure  Code  provisions,  which  entered  into  force  on  28  May 
2010,  will  need  to  be  further  ensured.  For  the  same  period,  the  Inspectorate 
completed  thematic  inspections  in  6  courts,  8  enforcement  offices  and  2  private 
enforcement  agents  on  the  application  of  the  Civil  Procedure  Code  with  respect  to 
first instance proceedings,  precautionary proceedings, enforcement  proceedings and 
compulsory  enforcement  and  in  4  courts  on  the  application  of  the  Administrative 
Procedure  Code.  As  a  follow-up  to  the  inspections,  amendments  to  the  Civil 
Procedure Code and the Ordinance on the samples of documents used by courts were 
proposed.  

A  draft  act  amending  the  Administrative  Procedure  Code  has  been  prepared  for 
submission  to  the  Council  of  Ministers  and  adoption  by  the  Parliament.  The 
amendments  include  reattribution  of  first-instance  jurisdiction  in  a  number  of 
administrative  cases  from  the  Supreme  Administrative  Court  to  the  district 
administrative courts and other changes in jurisdiction of appeals. These amendments 
will contribute to balancing the workload between the Supreme Administrative Court 
and the 28 district administrative courts. 
Bulgaria prepared important draft amendments to the Judicial System Act.8 The key 
amendments  refer  to  the  status,  appraisal  and  appointments  of  judges  and 

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Article 58a of the Penal Code and Article 373 Penal Procedure Code on expedited procedure. 
The  draft  amendments  are  yet  to  be  adopted  by  the  Council  of  Ministers  and  will  be  subsequently 
forwarded to the Parliament. 

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prosecutors.9  The  draft  amendments  strengthen  the  responsibilities  of  the  SJC  in 
ensuring  transparency  and  accountability  of  the  judicial  system.  The  amendments 
include  proposals  for  supplementing  the  functions  and  powers  of  judiciary  bodies, 
including  the  Supreme  Judicial  Council,  its Inspectorate as  well  as the Inspectorate 
within the Ministry of Justice. 

Bulgaria  started  to  address  the  Commission's  recommendation  by  taking  steps  to 
enhance  the  unification  of  jurisprudence,  notably  by  regular  publication  of 
interpretative  rulings  of  the  Supreme  Cassation  Court  (SCC)  and  the  Supreme 
Administrative Court (SAC)10 and of the SCC's bulletin containing all interpretative 
rulings  and  judgments  of  the  respective  panels.  In  addition,  regular  meetings  on 
issues  related  to  the  unification  of  jurisprudence  and  trainings  for  judges  are  being 
pursued. To maximise the impact of the newly amended PPC, it will be important to 
accompany  the  legislative  reform  with  a  wide  range  of  non-legislative  measures, 
such  as  drafting  guidelines  or  providing  trainings  for  judges  and  prosecutors. 
Furthermore,  a  broad  dissemination  of  interpretative  decisions  of  the  SCC  and  the 
SAC  will  be  necessary.  The  introduction  of  the  Central  Web-based  interface  for 
publishing  judicial  acts  will  be  of  added  value  in  harmonising  jurisprudence.  An 
effective control system will need to be put in place to ensure timely publication of 
all court decisions.  

In  April  2010,  Bulgaria  introduced  some  amendments  to  the  Penal  Code  to  ensure 
compliance  with  the  amended  provisions  of  the  Procedural  Code.  Some  steps  were 
taken to prepare the reform of the Penal Code. On 23 June, the Government adopted 
a  new  Concept  on  Penal  Policy.  A  working  group  entrusted  with  preparation  of  an 
overall revision has been set up and held several meetings. The Government sees the 
revision  of  the  Penal  Code  as  a  long-term  process.  It  should  be  backed  by  a  broad 
public consultation and enjoy a wide public and political support. A revision of penal 
policy, including the modernisation of the Penal Code and a differentiation between 
criminal  offences,  is  nonetheless  urgent  and  has  been  recommended  in  the 
Commission's July 2009 report.  

3. 

BENCHMARK 3: CONTINUE THE REFORM OF THE JUDICIARY IN ORDER TO ENHANCE 
PROFESSIONALISM, ACCOUNTABILITY AND EFFICIENCY. EVALUATE THE IMPACT OF 
THIS REFORM AND PUBLISH THE RESULTS ANNUALLY 

On  23  June,  the  Bulgarian  Government  adopted  a  Strategy  to  continue  Judicial 
Reform in the conditions of full EU membership. The Strategy sets an ambitious and 
comprehensive  vision  for  reform  of  the  judiciary  and  builds  upon  measures  taken 
earlier.  While  acknowledging  the  existing  shortcomings  of  judicial  practice,  the 
Strategy draws special attention to institutional strengthening and mobilisation of the 
capacity  of  the  judiciary  to  improve  the  quality  of  justice  and  the  efficiency  of  the 
system.  The  strategy  focuses  on  three  priority  objectives:  better  management  and 
good  governance  within  the  judiciary,  placing  the  citizens  in  the  centre  and 
countering  corruption  in  the  judicial  system.  The  priorities  outlined  in  the  Strategy 

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More details provided under Benchmark 3. 
Since  August  2009,  the  SCC  has  issued  five  interpretive  rulings  and  has  initiated  seven  further 
interpretive  cases.  Over  the  same  period  the  SAC  issued  four  interpretative  rulings.  Four  other  cases 
have been initiated. 

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will  be  implemented  through  a  set  of  measures  to  be  defined  in  a  detailed  Action 
Plan.  

The  Strategy  received  broad  support  of  politicians,  the  judiciary  and  civil  society. 
The success of reform will depend on its effective implementation by all institutions 
involved. A swift elaboration and implementation of an Action Plan accompanied by 
appropriate monitoring and evaluation mechanisms will be important to the success 
of the Strategy. 

Bulgaria  took  measures  to  streamline  the  process  of  appraisal  of  judges  and 
prosecutors.  These  steps  go  in  line  with  the  measures  recommended  by  the 
Commission  in  July  2009.  It  introduced  specific  performance  indicators  to  the 
existing appraisal system, strengthened the central role of the SJC's Commission for 
Proposals and Appraisal (CPA) and introduced a functional separation of appraisal of 
judges and prosecutors. The evaluating commissions take into account feedback on 
the  performance  of  the  magistrates  concerned  and  are  obliged  to  take  into  account 
ISJC findings regarding their performance. The appointment and appraisal decisions 
will be made through an open vote and supported by a motivation. Members of the 
SJC  will  be  excluded  from  voting  on  matters  where  they  could  be  in  conflict  of 
interest.  Entrusting  an  overview  of  the  appraisal  to  a  single  central  body  (the  SJC) 
and  issuing  guidelines  on  the  numerical  marking  will  play  an  important  role  in 
achieving a uniform application of the assessment.  

To  enhance  the  transparency  and  professionalism  of  the  appointments  to  senior 
positions, the SJC initiated enquiries regarding all signals concerning participants in 
competitions  for  administrative  heads.  The  SJC  now  requests  written  motivations 
from candidates who apply for administrative heads' positions at own initiative and 
reasoned  opinions  on  candidates  supported  by  other  magistrates.  It  is  too  early  to 
assess the implementation of this new approach in practice. 

The Ordinance adopted by the SJC and the draft amendments to the Judicial System 
Act will contribute to improving the objectivity and transparency of the appraisal and 
appointment procedures. The results of putting new procedures in place will have to 
be closely monitored in future. 

Other draft amendments to the JSA introduce changes in the organisational structure 
of the courts and the prosecution offices. The SJC will be charged with preparing an 
annual analysis of workload in courts and prosecution offices and on this basis take 
measures to re-balance personnel schemes or even close some courts or prosecutors 
offices  with  insufficient  workload.  The  already  ongoing  initiative  to  analyse  and 
evaluate the workload in courts and prosecution offices constitutes a first step in this 
direction.  

Anticipating  certain  forthcoming  amendments,  the  SJC  adopted  a  number  of 
structural  measures  to  be  implemented  by  the  administrative  heads  with  a  view  to 
improving 
included 
scheduling court hearings at shorter intervals and shortening the time for each court 
sitting. The SJC reported positive impact of these measures. 

judicial  proceedings.  Recommendations 

the  celerity  of 

Bulgaria continued monitoring a number of high public interest cases, some of which 
are also monitored by the European Commission. Out of 50 cases monitored by the 
SJC, 54% were reportedly completed with a sentence. Furthermore, the SJC monitors 
13 opened cases on offences committed by organized crime groups. The SJC reports 
a disciplining effect on the cases monitored. 

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Public  accountability  remains  an  important  challenge  of  the  judiciary.  Since  July 
2009,  Bulgaria  has  been  able  to  develop  a  first  track  record  in  following  up  to 
complaints  and  alleged  violations  of  the  judiciary's  ethical  code.  The  Ethics 
Commission  of  the  SJC  initiated  -  on  its  own  initiative  -  cases  of  alleged  ethical 
violations or corruption reported in the media and examined altogether 80 complaints 
and signals alleging violations of ethical rules by magistrates. Following the adoption 
of  the  unified  Code  of  Ethics  in  May  2009,  ethics  commissions  at  the  district  and 
appellate  levels  as  well  as  within  the  supreme  instance  were  set  up.  An  impact 
analysis  of  the  Code  of  Ethics  is  scheduled  for  2011,  once  the  training  process  is 
completed. 

Since  July  2009,  a  number  of  important  cases  of  trade  in  influence  affected  the 
reputation  of  the  Bulgarian  judiciary.  The  response  of  the  disciplinary  and  judicial 
authorities to these cases has been mixed. In response to the case concerning alleged 
trade in influence in high-level judicial appointments, the SJC imposed disciplinary 
sanctions against 18 magistrates for illegitimate contacts: 11 of them were demoted, 
a  20%  salary  cut  for  two  years  was  applied  in  the  case  of  one  magistrate,  3 
magistrates  were  dismissed  and  3  were  removed  from  their  positions.  However,  no 
criminal investigations against the involved magistrates were launched. Two elected 
members of the SJC, who were involved in the case, submitted their resignations and 
returned to the previously held positions. An amendment to the Judicial System Act 
(JSA) of December 2009 introduced the legal basis for disciplinary responsibility of 
members  of  the  Supreme  Judicial  Council  in  the  same  way  than  for  ordinary 
magistrates.  The  SJC  initiated  disciplinary  proceedings  against  the  two  of  its 
members. One of them was dismissed while the proceedings against the second one 
are still ongoing. 

In another case regarding allegations of trade in influence and mismanagement at the 
Blagoevgrad  District  Court,  no  disciplinary  proceedings  by  the  SJC  nor  criminal 
investigations  were  launched  despite  a  critical  inspection  report.  The  incumbent 
administrative head of the court in question was not re-appointed. 

In  a  third  large  scale  case  regarding  allegations  of  trade  in  influence  in  relation  to 
securing  valuable  real-estate  property  by  magistrates'  relatives,  a  more  proactive 
reaction  by  disciplinary  and  judicial  authorities  could  be  noted.  The  Ethics 
Commission  of  the  SJC  initiated  disciplinary  proceedings  against  all  magistrates 
concerned. Criminal investigations were launched in parallel. 

A  bilateral  assistance  project  developed  recommendations  for  a  system  to  collect 
complaints  concerning  magistrates.  The  recommendations  included  an  information 
campaign  on  types  of  complaints,  procedures  for  submitting  them,  creating  a 
mechanism for their monitoring and follow-up on a local level as well as setting-up 
of  a  centralised  electronic  registry  of  received  corruption  signals  regarding  the 
judiciary. 

The Supreme Judicial Council approved a model for courts’ websites and introduced 
a central web-based interface for the publication of judgments. As of July 2009, all 
courts were required to publish all judgments; however, random checks revealed that 
courts  do  not  systematically  comply  with  this  requirement.  The  SJC  does  not  have 
yet an effective system to control the respect of the requirement to timely publish all 
the  sentences.  Further  steps  to  fully  address  the  Commission's  recommendation  of 
July 2009 still need to be taken.  

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4. 

BENCHMARK  4:  CONDUCT  AND  REPORT  ON  PROFESSIONAL,  NON-PARTISAN 
CORRUPTION. 
INVESTIGATIONS 
REPORT  ON  INTERNAL  INSPECTIONS  OF  PUBLIC  INSTITUTIONS  AND  ON  THE 
PUBLICATION OF ASSETS OF HIGH-LEVEL OFFICIALS 

HIGH-LEVEL 

ALLEGATIONS 

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Bulgaria  has  stepped  up  its  efforts  to  fight  high-level  corruption.  Cases  against 
former Ministers, former Members of Parliament and other high-level officials were 
initiated and some of these cases have reached court.  

At  the  central  level,  an  inter-ministerial  Commission  for  the  Prevention  and 
Counteraction of Corruption11 within the Council of Ministers develops national anti-
corruption  policy.  In  September  2009,  the  role  of  the  Commission  was  extended 
through  a  new  mandate.  The  organisation  of  the  Commission's  work  and  the 
administrative  and  technical  services  are  carried  out  by  the  Directorate  “Chief 
Inspectorate",  which  is  directly  subordinate  to  the  Prime  Minister.  Further  work  is 
required  to  monitor  the  progress  in  the  fight  against  corruption  at  the  central  and 
local level, as recommended in the July 2009 report. 

The lack of effective control at the administrative level to prevent and detect fraud 
continued  to  pose  problems.  The  Commission's  recommendation  to  promote  pro-
active ex-officio investigations of corruption by administrative authorities has not yet 
been  addressed.  Administrative  controls  are  not  performed  systematically  and  the 
quality  of  signals  from  public  administration 
low.  Certain 
improvements  were  reported  with  respect  to  the  quality  of  signals  from  the 
institutions managing EU funds.  

is  reportedly 

Bulgaria reports that the law on the prevention and detection of conflicts of interest 
in  force  since  January  2009  lead  to  a  number  of  signals,  inspections,  disciplinary 
proceedings and sanctions. At the same time, few situations of conflict of interest are 
being  pursued  and  sanctioned.  The  control  bodies  are  not  effective  in  detecting 
conflict of interest as they lack the sufficient capacity and functional independence. 
No steps have been taken to develop guidelines for the implementation of the conflict 
of interest law recommended by the Commission. 

The  General  Inspectorate  to  the  Council  of  Ministers,  tasked  with  following-up 
signals on conflict of interest and verifying conflict of interest declarations, does not 
have  sufficient  capacity  and  tools  at  its  disposal  to  carry  out  these  functions 
effectively.  Between  August  2009  and  May  2010,  10  enquiries  on  conflicts  of 
interest  were  carried  out  (for  300  declarations  received).  In  8  of  these  cases  no 
irregularities  were  found.  The  Parliamentary  Committee  on  Anti-corruption, 
Conflicts  of  Interests,  and  Parliamentary  Ethics  (CACCIPE)  set  up  in  July  2009 
initiated  several  ex-officio  inspections,  which  revealed  that  five  Members  of 
Parliament  (MPs)  did  not  submit  their  declarations  before  the  deadline.  An 
inspection  on  the  contents  of  the  actual  declarations  is  ongoing.  The  Committee 
received  nine  signals  on  Ministers  and  MPs.  Six  cases  were  terminated  as  the 

11 

The Deputy Prime Minister and Minister of the Interior holds the chairmanship of the CPCC. Deputy 
Chairperson is the Deputy Prime Minister and Minister of Finance. The members of the Committee are: 
Minister  of  Justice;  Minister  of  Education,  Youth  and  Science;  Minister  of  Health;  Minister  of 
Economy, Energy and Tourism; Minister of Regional Development and Public Works; Chairperson of 
the  State  Agency  of  National  Security;  Secretary  of  the  Security  Council  with  the  Prime  Minister; 
Secretary of the Council of EU Funds Management with the Prime Minister. 

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Committee did not find a conflict of interest. Final decisions in other three cases have 
not yet been taken.  

The  law  on  the  prevention  and  detection  of  conflict  of  interests  contains  a  special 
provision on the protection of whistle-blowers, in order to protect the identity of the 
whistle  blower.  The  staff  in  charge  of  checking  signals  is  obliged  to  protect  any 
relevant  documents from unauthorized access. No further administrative safeguards 
to  protect  whistle-blowers  have  been  put 
in  place.  The  Commission's 
recommendation in this regard remains unaddressed.  

As  a  follow-up  to  a  recommendation  by  the  Commission,  the  establishment  of  a 
special agency in charge of detecting and preventing conflicts of interests is foreseen 
for 2011. The different control bodies which are currently in charge of implementing 
the law continued to be passive rather than pro-active in establishing possible fraud 
and corruption cases. To ensure public transparency, it is important that declarations 
on conflicts of interests are published systematically. 

In response to the Commission's recommendation, in March 2010, Bulgaria adopted 
amendments  to  the  Administrative  Act  aiming  to  strengthen  the  capacity  of 
inspectorates  by  giving  them  the  right  to  conduct  checks  at  their  own  initiative. 
Checks have become reportedly more regular and in some cases led to disciplinary 
sanctions  and  forwarding  cases  to  the  prosecution.12  The  Prime  Minister  intends  to 
create  a  working  group  to  develop  a  methodology  for  the  efficiency  of  the 
administration and a methodology for assessing corruption risks.  

Since their establishment in 2008, there have been no structural changes of the joint 
teams specialised in the EU fraud. In November 2009, the teams were transferred to 
new premises, which facilitates communication with the main record-keeping offices 
within the Prosecutor's Office and the Ministry of Interior. In 2010, the competences 
of the joint team on EU fraud were enlarged to a wider range of offences in relation 
to fraud and other crimes related to EU budget. In 2010, the joint teams on EU fraud 
report better results in terms of number of cases in pre-trial proceedings, indictments 
and court sentences compared to 2009.13 At the same time, investigative practice can 
be improved. Links between related cases and aspects of organised crime should be 
systematically explored. The possible implication of senior public officials in fraud 
schemes must be fully clarified. Altogether, it is important that the possibilities of the 
law are used in an effective way to sanction fraud with EU funds. Severe sentences 
in two emblematic cases related to EU funds were issued in first instance, though no 
detention  orders  were  imposed.  An  amendment  to  the  Penal  Code  introduced  more 
severe  punishments  in  EU  fraud  cases14,  however  the  general  level  of  penalties  for 

12 

13 

14 

The  Inspectorate  of  the  Customs  Agency  carried  out  256  inspections  upon  signals  and  15  planned 
inspections. As a result, 31 disciplinary sanctions were applied and 9 signals on criminal offences were 
forwarded to the prosecution. The National Audit Office carried out 91 inspections in relation to the law 
on disclosure of financial interests of senior public officials, which led to an audit against one official. 
The  NRA  audits  (108)  led  to  detection  of  39  cases  of  organised  fiscal  fraud  amounting  to  BGN  190 
million.  The  inspections  performed  by  the  Inspectorate  of  the  Ministry  of  Education  led  to  7 
disciplinary proceedings against the heads of Regional Inspectorates (conflict of interest) and 2 penal 
decrees against two public school headmasters. The Ministry of Interior's (MoI) Inspectorate imposed 
107 disciplinary sanctions and 22 sanctions were imposed on the proposal of other MoI bodies. 
Between January and May 2010, the prosecution filed 134 indictments compared to 125 in 2009. The 
number of court sentences registered in 2010 (55) is higher compared to 28 reported in 2009. 
Articles 202, 212, 248a, 254b PC.  

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EU  fraud  cases  remains  low  compared  to  standards in other EU Member States. In 
addition,  it  appears  that  the  most  appropriate  provisions  in  the  Penal  Code,  which 
allow for substantial penalties, general fraud and document fraud are rarely pursued 
in an effective way.  

As  reported  earlier,  legislative  changes  have  effectively  reduced  transparency 
regarding  the  ownership  of  company  assets  as  the  Commercial  Registry  Code  no 
longer requires the registration of subsequent changes in the acquisition and transfer 
of shares after a first registration. This decrease in transparency has a negative effect 
on financial investigations. Bulgaria is considering reacting to these shortcomings by 
obliging firms to announce every changes of ownership within 7 days. 

5. 

BENCHMARK 5: TAKE FURTHER MEASURES  TO PREVENT AND FIGHT CORRUPTION, 
IN PARTICULAR AT THE BORDERS AND WITHIN LOCAL GOVERNMENT 

In  line  with  the  Commission's  recommendation,  Bulgaria  adopted  an  Integrated 
Strategy  for  Prevention  and  Counteraction  of  Corruption  and  Organised  Crime. 
Some steps to ensure implementation of the Strategy have been taken.15 The Strategy 
is  to  be  implemented  through  an  action  plan  adopted  on  17  March  2010  and  an 
integrated  model  for  prevention  and  countering  organised  crime  and  corruption.16 
The modalities of implementation of the action plan were decided by Government on 
9 June 2010. It is too early to assess the real impact of the Strategy at this stage.  

Responding  to  the  Commission's  recommendation,  28  regional  anti-corruption 
councils  formed  at  a  local  level  are  reportedly  being  strengthened,  by  including  in 
their  composition  representatives  of  local  governments,  territorial  structures  of  the 
ministries,  judiciary,  civil  associations  and  businesses.  Further  work  is  required  to 
fulfil  the  Commission's  recommendation  on  this  matter.  The  Ministry  of  Interior 
implemented  a  number  of  preventive  measures,  including  awareness  raising 
campaigns  and  better  identification  at  the  border  checkpoints.  Bulgaria  reported 
several  initiatives  designed  to  combat  local-level  corruption  such  as  installing  of 
video  surveillance  systems  at  the  borders  or  carrying  out  anti-corruption  awareness 
raising campaigns. 

Based  on  the  agreement  signed  in  August  2009,  the  Customs  Agency  and  the 
National Revenue Agency (NRA) report to have access to their respective registers, 
database and information systems. An up-to-date module is still being implemented. 
Supervisory  teams  composed  of  employees  of  the  Customs  Agency  and  the  NRA 
carried out joint inspections of border check points and audits of high risk tax payers. 
A  number  of  pre-trial  proceedings  were  initiated  against  local  government  officials 
and charges have been brought against six mayors. 

A system for evaluating corruption risk in the health area and an electronic register 
for  corruption  signals  have  been  implemented  in  the  public  health  structures.  The 
Medical  Audit  Executive  Agency  was  established  in  December  2009  to  deal  with 

15 
16 

See also under Benchmark 6. 
The so-called BORKOR project. 

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complaints  and  corruption  signals.17  A  partnership  with  the  civil  society  has  been 
forged to improve governance and counter corruption in the field of education. 

In relation to land swaps prohibited by law of January 2009, civil society requested 
either  a  referendum  on  annulling  state  and  municipal  land  swaps  by  passing  a  law 
revoking  land  swaps  deals  or  obliging  beneficiaries  of  land  swaps  to  pay  the  real 
market  price.  On  5  August  2009,  the  Government  issued  an  order  suspending  the 
examination  of  applications  for  exclusion  of  forest  acquired  by  private  natural  or 
legal persons by means of swap from the forestry stock. This moratorium has been 
confirmed  by  the  Resolution  adopted  by  the  National  Assembly  on  3  September 
2009.  Bulgaria  reports  two  pre-trial  proceedings  and  one  investigation  opened  as 
well as one case pending before court. Criminal proceedings were opened against a 
former minister of agriculture.  

Several reports on vote-buying have been recorded on the occasion of the European 
and the national elections in July 2009. The prosecution identified 87 cases of trading 
in votes, which led to 11 convictions and one acquittal.18 

The  Commission’s  analysis  of  the  implementation  and  control  system  for  public 
procurement revealed significant shortcomings.  

Frequent changes in the legal framework and in implementing procedures in the last 
year  presented  considerable  challenges  to  contracting  authorities.  This  legal 
instability affected  the  capacity  of  the  control  bodies  to  develop  consistent  practice 
and  made  it  difficult  for  courts’  to  elaborate  coherent  jurisprudence  on  appeals  in 
public procurement cases.  

The ex-ante and ex-post controls carried out respectively by the Public Procurement 
Agency  (PPA)19  and  the  Public  Financial  Inspection  Agency  (PFIA)20  reveal  very 
high rates of irregularities, which reach up to 100% of tenders controlled ex-ante and 
60% of tenders controlled ex-post.  

The  main  problems  in  the  field  of  public  procurement  are  linked  to  conflict  of 
interest,  local  favouritism  and  frequent  recourse  to  direct  attribution  of  contracts  in 
situations  where  tender  procedure  should  be  applied.  The  law  on  prevention  and 
detection of conflict of interest lacks efficient implementation structure and therefore 
does  not  offer  adequate  protection  against  conflict  of  interest.  In  the  context  of  the 
implementation  of  EU  funds,  services  of  the  Commission  have  pointed  to  those 
weaknesses  on  several  occasions  and  transmitted  a  number  of  concrete  suggestions 
for corrective action. 

Fines applied as a result of irregularities detected in ex-post controls are rather low 
and not sufficiently dissuasive. Disciplinary sanctions can be suggested by the PFIA 
but their application falls under the discretion of the public administration concerned. 
Very few signals on corruption in public procurement are detected by administrative 
authorities and forwarded to the prosecution and no regular feedback on the judicial 

17 

18 
19 
20 

The  Medical  Agency  dealt  with  78  complaints  (including  9  signals  of corruption)  and  5  signals  were 
found well-founded. The Agency inspected 88 medical institutions (28 acts on administrative violations 
identified) and six regional health insurance funds. 
27 investigations are still pending, 15 had been terminated and in 6 cases indictments were filed. 
Since January 2009 until June 2010, the Agency carried out ex-ante controls in 310 tender procedures.  
During the reporting period, the PFIA issued 2102 actors for administrative violations.  

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follow-up to these signals is ensured.21 Neither the Public Procurement Agency nor 
the Public Financial Inspection Agency has the explicit power to carry out ex-officio 
checks  and  the  ex-ante  and  ex-post  control  systems  in  practice  are  entirely  signal 
based.  The  ex-ante  and  ex-post  control  system  lacks  a  strategic  approach  based  on 
risk  analysis  and  targeted  controls.  This  constitutes  a  fundamental  weakness  of  the 
control  system  as  some  contracting  authorities  can  avoid  controls  if  no  signals  on 
them are received. Given the limited resources and staff capacity, the control bodies 
are in a position to control only a small percentage of all the tenders carried out in 
Bulgaria.  Establishing  a  plan  of  inspections  would  generate  a  disciplinary  effect, 
while targeting inspections to vulnerable areas would help to address the most blatant 
irregularities.  

The Public Procurement Agency took measures to provide the contracting authorities 
with guidance such as practical manuals and training, however, the insufficient staff 
capacity prevents it from fulfilling this function to full avail.  

The current system of remedies does not offer sufficient guarantees for the appealing 
bidders as it rarely leads to suspension of tender procedures. Bulgaria took steps to 
address this problem by adopting amendments to the Public Procurement Act, which 
were  adopted  by  the  Parliament  and  entered  into  force  on  13  July.  The  new  law 
introduced a standstill period during which the contract cannot be concluded.22 The 
two-instance  review  proceedings  as  well  as  the  character  of  appeal  authorities  are 
maintained.  A  one-month  time  limit  is  provided  to  each  of  the  authorities  to 
pronounce  the  ruling.  The  possibility  for  interim  measures,  including  measures  to 
suspend  the  procedure  for  the  award  of  the  public  contract,  is  preserved.  .  At  the 
same time, the obligation to pay a guarantee of 1% of the amount of the contract is 
withdrawn. The scope of Public Procurement Agency’s ex-ante controls is expanded 
to  cover  procedures  for  the  award  of  services  and  supplies  contracts  financed  with 
EU funding whose value is equal to or exceeds BGN 1 000 000.23 

6. 

BENCHMARK 6: IMPLEMENT A STRATEGY TO FIGHT ORGANISED CRIME, FOCUSSING 
ON  SERIOUS  CRIME,  MONEY  LAUNDERING  AS  WELL  AS  ON  THE  SYSTEMATIC 
CONFISCATION  OF  ASSETS  OF  CRIMINALS.  REPORT  ON  NEW  AND  ONGOING 
INVESTIGATIONS, INDICTMENTS AND CONVICTIONS IN THESE AREAS 

Bulgaria  has  stepped  up  its  efforts  to  fight  organised  crime  in  an  effort  to  restore 
confidence in public institutions. Arrests of well-known criminal figures in targeted 
operations were carried out. In some cases, court procedures have been initiated. At 
the  same  time,  collecting  qualitative  evidence  during  the  pre-trial  phase  remains  a 
serious  problem,  as  are  lengthy  procedures  and  frequent  delays  at  the  trial  phase. 
Some  well-known  organised  crime  cases  did  not  progress  during  the  reporting 
period.  

21 

22 

23 

Up to date, the Public Financial Inspection Agency reports having forwarded 480 corruption signals to 
the  prosecution.  Since  2006,  the  Commission  for  the  Protection  of  Competition  reports  having 
forwarded only 12 signals on corruption to the prosecution. 
The  duration  of  the  standstill  period  will  be  14  days  (Directive  2007/66/EC  requires  10  days)  from 
notification of the interested candidates or tenderers on the award decision.  
Under the law prior to amendments of 13 July 2010, contracts for supplies of goods and services were 
subject to ex-ante control only if an irregularity was found at the same contracting authority within a 
period of two years. 

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The  Ministry  of  Interior  carried  out  a  number  of  operations  targeting  organised 
groups  specialised  in  kidnapping,  prostitution  and  drug  dealing.  The  criminal  and 
investigative police worked on the investigation in close cooperation with SANS and 
with  the  support  of  administrative  bodies,  such  as  the  National  Revenue  Agency 
(NRA), the Customs Agency, and the tax authorities. SANS reported receiving more 
signals  from  the  financial  institutions,  which  enabled  it  to  pursue  several  money 
laundering cases. 

Responding to the Commission recommendation to set up specialised structures for 
prosecuting  high  level  corruption  and  organised  crime  and  to  make  the  ad  hoc 
structure  of  joint  investigation  teams  on  organised  crime  permanent,  joint  teams 
specialized in organized crime and corruption were established in October 2009. The 
members of the teams are seconded by their respective agencies (Ministry of Interior, 
the prosecution, State Agency for National Security). While the teams are permanent, 
its  members  change  depending  on  the  investigation  carried  out.  There  are  no  clear 
criteria on which cases are assigned to the teams. Bulgaria assesses the work of these 
teams  as  effective  and  reports  the  first  results  in  connection  to  indictments  against 
persons accused of being members of organised crime groups.  
Bulgaria  reports  the  creation  of  specialised  units  within  five  district  courts.24  In 
addition, the idea to set up specialised courts or specialised panels to try organised 
crime cases was launched in May 2010. The Strategy for the reform of the judiciary 
proposes  a  thorough  debate  with  all  competent  actors.  The  creation  of  specialised 
structures  should  respect  procedural  rights  and  be  consistent  with  the  Bulgarian 
judicial organisation. In particular, issues such as the status and functioning of such 
specialised  structures  within  the  judicial  system,  criteria  on  which  judges  and 
prosecutors  would  be  selected  as  well  as  choice  of  cases  assigned  should  be 
discussed.  

The structural reforms of both of the State Agency for National Security (SANS) and 
the Ministry of Interior (MoI) at the end of 2009 clarified the respective competences 
of  the  criminal  police  in  the  MoI  and  SANS.  The  cooperation  between  the  two 
institutions appears improved, notably through an exchange of information and joint 
investigations carried out in the framework of joint teams under the leadership of the 
prosecution.  

A  Parliamentary  Commission  for  supervising  SANS  was  put  in  place  and  received 
first reports from the head of SANS, mainly on budgetary and staffing matters. 

include 

the  protection  of 

The  structural  reform  of  SANS  was  combined  with  reorganisation  of  the  Agency's 
the  national  security, 
priorities,  which  currently 
counteraction  and  neutralization  of  risks  and  threats  with  reference  to  critical 
infrastructures,  the  democratic  processes  and  the  constitutional  order.  The  main 
responsibility in combating organised crime was transferred back to the Ministry of 
Interior. The reform of the Ministry of Interior led to the establishment of the Chief 
Directorate  Combating  Organized  Crime25  as  and  independent  structure  under  the 
direct subordination to the Minister of Interior. Bulgaria reports a number of arrests 
of well-known figures in targeted operations against organised crime groups and an 

24 

25 

Turgovishte, Yambol, Blagoevgrad, Sofia and Pleven. Two judicial panels have also been set up at the 
Military  Appellate  Court  and  at  all  military  courts  –  in  the  cities  of  Plovdiv,  Sliven,  Pleven,  Varna, 
while the Sofia Military Court has four panels. 
This department initiated 46 pre-trial proceedings and detected 5 organised crime groups. 

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increase in the number of indictments regarding organised crime cases. It remains to 
be  seen  whether  the  quality  of  evidence  collected  in  the  course  of  investigations 
carried  out  by  the  police  in  cooperation  with  the  prosecution  will  be  sufficient  to 
provide solid basis for proving organised crime activities.26  

In  response  to  a  recommendation  by  the  Commission,  the  Government  proposed  a 
draft Act on the Forfeiture of Illegally Acquired Asset in December 2009. The draft 
suggested  introducing  a  non-conviction  based  civil  seizure  and  forfeiture  of  assets 
derived  from  illegal  activities,  based  on  a  combined  system  of  criminal  and  civil 
law.27 It also provided for the increase of the competence of the agency in charge of 
carrying out investigations and forfeiture procedures and extending the target group 
to  which  the  law  applies.  The  draft  law  has  been  revised  several  times  and  should 
reach Parliament before the end of the year following an opinion by the Council of 
Europe's Venice Commission. 

Since  July  2009,  the  Commission  for  the  Establishment  of  Property  Acquired 
through  of  Criminal  Activity  (CEPACA)  reports  further  progress.  During  the 
reporting  period,  CEPACA  initiated  147  proceedings.  118  decisions  to  impose 
freezing  of  assets  were  filed  in  court  amounting  to  BGN  356  800  000.  22  court 
decisions  on  first  instance  and  14  in  second  instance  were  reported.  For  the  same 
period, only two court decisions became effective, for a sum of BGN 270 236. 

The effectiveness of CEPACA is weakened by the fact that it starts is activities at the 
very late stage. As noted in the previous report of the Commission, a timely freezing 
of assets in organised crime cases has an important deterrent effect. To achieve this 
effect, the freezing of assets must be carried out as early as possible. The currently 
applicable  legal  framework  allows  the  freezing  of  assets  only  at  the  time  of 
indictment.  As  a  result,  freezing  of  assets  often  looses  its  operational  effect.  The 
planned amendments seem not to address this matter. 

Bulgaria  facilitated  some  investigations  into  unexplained  wealth  by  amending  the 
Law  on  Income  Tax  on  Natural  Persons.  Consequently,  as  of  1  January  2010  it  is 
mandatory to declare all loans over BGN 10 000. As the deadline for tax declarations 
for  2009  passed  only  on  30  April  2010,  the  effect  of  the  measure  cannot  yet  be 
assessed.  

Investigations into unexplained wealth over BGN 500 000, carried out by the Money 
Laundering  Counteraction  Section  of  the  Supreme  Cassation  Public  Prosecutor’s 
Office in close cooperation with the authorities of the tax administration, are still in 
process. They are initiated mostly on signals, ex-officio investigations continue to be 
carried out on a small scale. SANS and CEPACA jointly developed a Manual on the 
investigation  of  money  laundering.  No  developments  regarding  the  prohibition  of 
cash  payments  for  real-estate  transfers  were  reported.  A  pro-active  approach  of  the 
prosecution  on  money  laundering  is  particularly  needed.  Yet,  few  ex-officio 
investigations  are  carried  out,  as  generally  the  prosecution  acts  only  upon  specific 
signals from administrative control authorities. 

26 

27 

Bulgaria reports a total of 765 pre-trial proceedings in relation to organised crime have been initiated in 
the reporting period, and charges brought against 523 persons involved in criminal activities. In a recent 
organised  crime  group  case,  two  main  defendants  were  acquitted  in  first  instance  due  to  lack  of 
evidence proving their leadership of an organised crime group. 
The use of a non-conviction based civil proceedings as a means of recovering the proceeds of crime can 
be  found  in  common  law  countries  (Australia,  Ireland,  Italy,  United  States,  UK  and  South  Africa)  In 
continental Europe forfeiture or confiscation is generally part of the criminal procedure. 

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According to available data at the Supreme Cassation Public Prosecutor’s Office out 
of  21  cases  related  to  money  laundering  submitted  to  court  during  the  reporting 
period, 5 involve also charges pursuant to Article 321 of the Penal Code (organized 
criminal  group)  and  another  8  cases  involve  charges  for  other  predicate  crimes 
(without  corruption-related  offences).  The  main  defendant  in  a  SAPARD  money-
laundering case has been sentenced to 10 years of imprisonment. 

Since the beginning of the year three public killings took place. The perpetrators in 
these cases have not yet been arrested.  

Some  steps  were  taken  towards  setting  up  of  the  Unified  Information  System  for 
Combating Crime. The system connecting the databases of the Ministry of Interior, 
the prosecution and the courts is expected to be operational in 2013.  

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