Bulgaria FBI Find Large-scale Violations at Maritsa-Iztok Mines Bulgaria's State Agency for National Security (DANS) has found violations in the Maritsa – Iztok mines for BGN 19 M committed only in the last 2 years. The information was revealed during a joint press conference of Prime Minister, Boyko Borisov, and the DANS Director, Tsvetlin Yovchev, who were on a visit to the area. The mines' management had rejected an offer for the purchase of new excavators from German companies for prices ranging between BGN 28 and 45 M while, at the same time, they invested BGN 16 to 30 M in repairs of old ones. So instead of purchasing 2 new machines, the mines repaired 3 old ones, and some of the work had never been done, Yovchev said. Another BGN 14 M were paid for repairs of old rubber lines and contracts for another BGN 8 M have been signed in 2010. The invoices were made for new lines, but old ones have been repaired instead, with the transport expenses being pocketed. BGN 1.7 M have been spent on other repairs in violation of the public tender laws by breaking down orders to amounts of BGN 60 000 each. In addition, the mines' management had done remodeling of vacation homes for employees despite the difficult financial situation – for BGN 10 M in 2008 and BGN 8 M in 2009. The probe also established lack of control of the coal quality, except in the Italian managed Thermal Power Plant (TPP) “Enel Maritza – Iztok 1.” In many cases, the coal has been listed with much lower quality than the real one, triggering losses for the State.
Source: Darik Radio (31.03.2010)

SANS raise the curtain on grave embezzlements in Mini Maritsa Iztok Mini Maritsa Iztok SPLTD had been plagued by embezzlements worth billions in local currency, PM Boyko Borisov and the head of SANS Tsvetelin Yovchev announced during their visit at the Troyanovo mine. In Borisov’s words, the inspection gave them grounds to approach the prosecutor general and initiate a probe into the shady past of the state-owned company, suspecting serious misuse of funds. Borisov also asked the Bulgarian Energy Holding to reveal the perpetrators of the embezzlement in a report. Yovchev confirmed the allegations, saying the agency had been long investigating signals for financial violations in Mini Maritsa Iztok, mainly through orchestrated public procurement procedures, vague quality control and illicit price formation.
Source: Pari (31.03.2010)

BEH to be dissolved by end-June Bulgarian Energy Holding (BEH), which manages eight state-owned companies, will be dissolved by the end of June, minister of economy and energy Traycho Traykov said after meeting members of AmCham in Bulgaria. The holding will be split into independent companies initially, though other forms are also being considered, Traykov pointed out. One of the options is uniting gas companies into one group. Alternatively, trade companies may be put under one umbrella and their assets, under another, he added. BEH includes Maritsa Iztok Mines, Maritsa Iztok 2 thermal power plant, Kozloduy nuclear power plant, National Electric Company (NEK), Bulgartransgaz and Bulgartel. All companies are 100% owned by the state. The holding was set up in September 2008 to manage, assess and sell interests in the eight trade firms. We wanted to give BEH a chance and let it optimise the activities of the companies. However, we cannot see any positive effect yet, Traykov said. The government is considering privatising or listing NEK or parts of it on the stock exchange, the minister told reporters. The same holds true for Electricity System Operator and Maritsa Iztok 2. All documents have been prepared for a consolidation company that will sell the state's minority stakes, Traykov pointed out. Two of the three electricity distribution companies are ready to buy the state's 33-percent stake, he added.
Source: Pari (12.04.2010)

Spare parts abuse was found during an inspection in Mines Maritsa Iztok. On the territory of mine Troyanovo-Sever are found illegally stricken out parts that were not used in the production. The violation is in particularly large size, said inspectors. Stocks are at a total value of BGN 15 400. Spare parts were found in a van outside the warehouse.
Source: Standart (18.05.2010)

Cheap coal reduces electricity prices Mines Maritsa Iztok have reduced the price of lignite coal by 4%. Therefore, TPPs which purchase the commodity may reduce the price of electricity, said the new management of the mining company. To offset the losses from lower prices of coal, which is now sold for BGN 71.50 per ton, the miner has reduced its own costs by 15%. This gesture amis a crisis leads to the cheapest electricity mix in Maritsa Iztok, and thus its price may fall by 5-7%, said CEO Todor Todorov. This is especially true for TPP-s Enel Maritza East 3 and AES Galabovo, which have long term contracts with NEK for purchase of electricity. Todorov underlined that he overtook Mines Maritsa Iztok with a BGN 17 million of obligations, while currently the company is in above the line with over BGN 6 million.
Source: Standart (13.07.2010)