Bulgaria’s Strides Against Financial Fraud in Public Procurement

The Challenge: Corruption and Fraud in Bulgarian Public Procurement

Amidst growing concerns over corruption and fraud in public procurement across Europe and beyond, Bulgaria is taking strides to bolster its defenses against such illicit activities. High-profile scandals surrounding infrastructure and procurement projects in the country have eroded public trust, depleted the national budget, and potentially impacted EU development funds.

The Response: A Two-Pronged Approach

Preventive Measures

The Bulgarian government is addressing this issue through a two-pronged approach. Preventive measures in the form of significant reforms to its procurement legislation are set to be implemented in 2023. These reforms aim to help Bulgaria meet EU legislative requirements and commitments under the National Recovery and Resilience Plan and prepare for future Organisation for Economic Co-operation and Development (OECD) membership.

Expert Advisory Council

One of the measures includes the establishment of an expert advisory council to the Minister of Finance. This council, which will analyze the implementation of the law and issue guidelines to harmonize audit controls, is being assisted by the Basel Institute in its establishment and the training of its members.

Enforcement

Bulgarian law enforcement agencies are working diligently to enhance their capacity to detect, investigate, and prosecute corruption in infrastructure projects and procurement and to recover stolen funds.

Building Capacity: Specializing in Corruption in Infrastructure Projects and Procurement

A Simulated Investigation

In line with these efforts, a specialized training program on Corruption in Infrastructure Projects and Procurement was conducted in Sofia, Bulgaria, last week. The five-day workshop was funded by the Swiss Agency for Development and Cooperation (SDC) under the Swiss-Bulgarian Cooperation Programme and attracted 23 participants from various backgrounds.

Red Flags and Complex Schemes

During the training, attendees put their skills to the test in a simulated investigation into a fictitious Deputy Director of the Road Infrastructure Agency. Working in task force groups, they identified red flags and unraveled complex schemes used by favored contractors to manipulate public tenders.

Evidence Collection and Stealing Assets Recovery

Participants also collected evidence to prove corruption and money laundering offenses in court and focused on the recovery of stolen assets laundered both domestically and abroad.

The Significance: High-Level Participation and Emphasis

Deputy Minister of Justice Emil Dechev opened the workshop and highlighted the significant losses the Bulgarian national budget experiences in public procurement. He emphasized the potential for Bulgaria to build critical infrastructure and improve its citizens’ quality of life if these unauthorized financial outflows can be controlled.

Thomas Stauffer, Head of the Swiss Contribution Office in Bulgaria, closed the workshop by emphasizing its significance for the country’s national agenda. He noted that corruption in procurement is one of the most visible and damaging manifestations of the problem, whereby private interests are prioritized at the expense of the public good.

The Impact: Bulgaria’s Progress Against Financial Fraud and Corruption in Public Procurement

Bulgaria’s implementation of legislative reforms and specialized training programs signifies its commitment to combating financial fraud and corruption in public procurement. These efforts are crucial in rebuilding public trust and ensuring the efficient use of resources to drive the country’s future development.