, were allocated for the design and construction of a signaling and telecommunications system){kind=link}
SOFIA – The European Public Prosecutor’s Office (EPPO) has indicted four individuals in connection with a €94.5 million fraud involving the modernization of Bulgaria’s Plovdiv-Burgas railway.
The funds, part of a project financed by the European Union (EU), were allocated for the design and construction of a signaling and telecommunications system.
The accused include two managers from an Italian company, a Bulgarian manager, and a former director of the National Railway Infrastructure Company (NRIC). Charges include falsifying qualifications to secure a public procurement contract and misuse of EU funds.
False Claims and Mismanagement
According to the EPPO, the consortium of four companies involved in the project provided false information to the NRIC during the tender process.
They falsely claimed that one of the companies had extensive experience in building global mobile communication systems for railway transport, a qualification crucial for securing the contract. However, none of the companies met the required criteria.
Despite being aware of the discrepancies, the then-director of NRIC, Eng. Krasimir Papukchiyski, signed off on the contract.
Moreover, the consortium breached its declaration to abstain from subcontracting by hiring a company previously disqualified for technical shortcomings.
Legal Proceedings and Restrictions
Three of the defendants were granted bail set at €50,000 each, while the Bulgarian manager received a reduced bail of €5,000. The Bulgarian manager has also been prohibited from leaving the country pending further investigation.
The EPPO, which launched its first investigation in Bulgaria in January 2022, stated that this case underscores its mission to protect EU financial interests. The agency highlighted that such fraudulent activities compromise the integrity of projects meant to enhance public infrastructure and safety.
Background of the Project
The Plovdiv-Burgas railway modernization project was initiated in 2021 with funding from the European Structural and Investment Funds. Its goal was to improve international rail transport efficiency and safety along key European corridors.
Eng. Krasimir Papukchiyski, then Director General of the National Railways Corporation, led the initiative. The project focused on upgrading signaling and telecommunications systems to facilitate seamless rail operations.
However, the fraud allegations have cast a shadow over the project’s credibility, raising concerns about oversight and accountability in EU-funded infrastructure initiatives.
EPPO’s Expanding Role
Established in 2019, the EPPO is an independent body tasked with investigating and prosecuting crimes against the EU’s financial interests.
This includes fraud, corruption, and misappropriation of funds. The Sofia case highlights the institution’s growing role in ensuring the responsible use of EU funds in member states.
In a statement, the EPPO emphasized the importance of rigorous monitoring and transparency in EU-funded projects to prevent similar incidents in the future.
Public Reaction
The charges have sparked public and political scrutiny, with calls for greater accountability in managing EU-funded projects. Analysts note that such cases could impact Bulgaria’s credibility in securing future EU investments.
As investigations continue, the case serves as a reminder of the importance of vigilance and integrity in handling public funds.
The EPPO’s efforts underscore its commitment to protecting European taxpayers and ensuring that allocated resources are used for their intended purposes.