Financial Crime World

European Public Prosecutor’s Office in Bulgaria Launches Raids on Companies and Residences related to Zheleznitsa Tunnel Construction

In a significant move against financial crime, the European Public Prosecutor’s Office (EPPO) in Bulgaria has launched a series of raids on six companies and four private residences in two Bulgarian districts. The investigations are linked to the construction of Bulgaria’s longest road tunnel, Zheleznitsa, which recently opened for traffic.

Background

  • The Bulgarian Road Infrastructure Agency (BRIAn), responsible for overseeing the project, had contracted a consortium of three companies to implement the project.
  • The project was co-financed through the European Cohesion Fund under the Transport and Transport Infrastructure Operational Programme (2014-2020).
  • Approximately BGN 185 million (€95.6 million) was allocated to the contractor, with 85% of this sum coming from EU funding.

Suspected Criminal Activities

  • At the instigation of the EPPO, searches are taking place to gather evidence in a suspected case of:
    • Embezzlement
    • Misappropriation of EU funds
    • Money laundering
    • All related to the construction of the Zheleznitsa tunnel

Companies and Individuals Under Investigation

  • One of the companies involved in the consortium is the main focus of the investigation.
  • Officials allege that this company made several large, fictitious money transfers, totaling over BGN 11 million (€5.6 million), to a series of shell companies.
  • Individuals with criminal records were then reportedly able to withdraw sizeable sums of cash from these companies.
  • The shell companies and individuals are also implicated in another ongoing EPPO investigation, focusing on infrastructure projects in the railway sector.

Investigations in Progress

  • The EPPO in Bulgaria expressed its intention to ascertain the full extent of the suspected criminal activities and revealed that the investigations are still in their early stages.
  • The General Directorate of the National Police (ГДНП) and the State Agency for National Security (ДАНС) are conducting the raids.

EPPO’s Role in Protecting EU’s Financial Interests

  • The EPPO is the EU’s independent public prosecution office.
  • It is responsible for investigating, prosecuting, and bringing to justice crimes that threaten the financial interests of the European Union.