Raids Probe Misappropriation of EU Funds in Projects Involving Railways and Energy Efficiency in Bulgaria

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The European Public Prosecutor’s Office (EPPO) has launched a major investigation into the misappropriation of EU funds in Bulgaria, with 143 ongoing probes worth an estimated total of €492 million. The latest development saw EPPO raids 28 homes and offices on Thursday as part of efforts to investigate the misuse of EU cash in railway projects.

Investigation Focuses on Two Railway Projects

The probe focuses on two projects for the upgrade of railway infrastructure, worth more than €241 million in EU funding, and a grant for improving the energy efficiency of residential buildings in General Toshevo town, worth €169,000. The European Public Prosecutor’s Office is investigating allegations that funds were misused by contractors who made fictitious money transfers to shell companies and withdrew cash amounts exceeding €2.5 million.

Corruption Hotspot

Bulgaria has long been a hotspot for corruption, with organized crime groups seen as one of the main beneficiaries of EU funding. According to the Center for the Study of Democracy, up to 15% of the country’s EU funds are regularly misappropriated.

Government Pledges to Root Out Corruption

The government of Prime Minister Nikolai Denkov has pledged to root out corruption and ensure that security forces are not influenced by Russia. The recent change in leadership saw Ivan Geshev, Bulgaria’s highly controversial chief prosecutor, forced out of office in June amid widespread criticism.

Recent Developments

On Wednesday, the mayor of General Toshevo was arrested for presenting fake details regarding works on upgrading energy efficiency in municipal buildings and released after paying €5,000 bail. The use of Bulgarian security forces in the investigation is seen as a sign of cooperation between EPPO and the government.

Challenges Ahead

The European Public Prosecutor’s Office has been conducting investigations into corruption in Bulgaria for several years, but securing convictions of top-level criminals remains a major challenge for the country.