Bulgaria wants to reverse privatization of state-owned companies

Audio 03:26

By: Damian Vodénitcharov

The Bulgarian prosecution wants to reconsider the privatization of public enterprises after the fall of communism. It is one of the most controversial periods in the history of Bulgaria. The Bulgarians believe that privatization was a criminal process, which allowed the oligarchs to take control of the country's economy.

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First, what is meant by this privatization review ?

The prosecution does want to comb everything. It is a little more than 10,000 sales, contracts and buyouts, which took place from 1992. A little more than a third of these privatized goods are in industry and almost a quarter in trade. Construction, tourism and agriculture are in third place, with 10% each. The least affected sectors are public health, culture and defense. The assets accumulated during this process amount to around 9 billion euros. Prosecutor General Ivan Geshev therefore ordered the intelligence services to verify the legality of all these transactions, as well as the respect of contracts. All public bodies responsible for controlling privatization, such as ministries and agencies responsible for monitoring contracts, will also be examined. Geshev even asks parliament to be ready to amend the constitution if necessary, so that " justice is done in the name of all Bulgarians ".

The fall of communism was thirty years ago, since Bulgaria became a member of NATO and the EU ... isn't it too late for this kind of review ?

It is for this reason that the Attorney General and his relatives began to talk about a possible constitutional amendment. Most of these contracts have expired, and therefore the parties cannot be sued. That said, privatization is the dark period of democratic transition in Bulgaria. The process itself is widely seen as a criminal and corrupt enterprise that has allowed organized crime and the future oligarchy to take control of public property. The resale of the Kremikovtzi steel complex, located near the capital Sofia, is emblematic. The complex comprised 25 factories over an area of ​​25 km2 and employed more than 35,000 people after it opened in 1963. In 1999, Kremikovtzi was riddled with debt and sold for $ 1. At the time, the government said it had to sell everything in a hurry because of the economic and financial crisis in which the country was plunged in 1996, but serious doubts persist.

And no one has been interested in privatization so far ?

Precisely, this is the third time that the prosecution or the authorities will review everything. Already in 2001, the Attorney General reviewed privatization. Same thing in 2017, when the prosecution indicated that 25 contracts had not been respected. There is therefore a dose of populism in this decision, especially since the current attorney general, Ivan Geshev, was elected to this post in October and since then, he has multiplied investigations and appearances in the media to promise to " solve people's problems and sufferings ”. The privatization review is also part of a series of high-level lawsuits against Bulgarian businessmen and oligarchs, which has even turned into a sort of hunt for billionaires. The latest accused, gambling magnate Vassil Bojkov, was arrested in the United Arab Emirates. Experts are very skeptical of this initiative by the prosecution. The Institute for Market Economy, a research center, sees this as a “ monumental, if not impossible, ” task, and above all a means of exerting pressure. For several years, the position of attorney general has become increasingly influential. At the end of January, the prosecution even wanted to find out about the validity of the presidential immunity, before giving the media private conversations between the president and his advisers. Parliament then began to discuss a possible dismissal of the president, which was ultimately rejected.

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