Eleven people have been detained as Bulgaria’s General Directorate for Combating Organized Crime (GDCOC) continues investigating an alleged corruption scheme involving public procurement contracts awarded by a water utility company, which investigators say caused millions of euros in losses to the state, the Directorate said on Facebook on Thursday.
Investigators searched seven private homes and examined 24 crime scenes. They seized more than EUR 20,000 in various currencies, valuables including investment coins, jewellery and watches, as well as documents, notebooks, electronic devices containing information relevant to the investigation and ammunition of various types and calibres. A total of 38 people were questioned.
According to GDCOC, the suspected organized crime group had been operating in Burgas and Sofia since February 2024 and was allegedly formed to facilitate offences committed by public officials for financial gain.
The investigation found indications that construction and repair works under contracts concerning reservoirs used for drinking and domestic water supply in several settlements had been carried out only partially, to a poor standard or merely on paper. Nevertheless, the works were formally accepted and paid for in full.
Under one contract, payments reportedly reached twice the originally announced value through additional agreements covering unforeseen expenses.
In another case, investigators found that payments had been made for repair works that had not actually been carried out. They also identified allegedly inflated costs for individual items, including a stainless-steel ladder priced at BGN 1,700 (about EUR 850) and the manufacture and installation of a PVC door for a water chamber at BGN 3,200 (about EUR 1,600).
Payments under these two contracts alone exceeded BGN 13 million (about EUR 6.5 million) excluding VAT, or nearly BGN 16 million (about EUR 8 million) including VAT, according to GDCOC.
Investigators also found indications that the procurement procedures had been arranged in advance between the contracting authority and the contractors, with much of the money subsequently transferred to individuals linked to the investigation.
Discrepancies were also identified between the construction and repair works reported and paid for and the actual condition of the completed facilities.
The investigation is ongoing.
Earlier in October, the Burgas District Court rejected a request to change former Burgas Water Supply and Sewerage Company director Tsvetan Mirchev’s detention measure from house arrest to remand in custody. Mirchev is accused of participating in an organised crime group and was released from custody in August.
2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-10-15 14:44:42
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