Dokument #1087231
IRB – Immigration and Refugee Board of Canada (Autor)
Neither the President of Transparency
International - Bulgaria, nor the Executive Director of the Civil
Society Development Programme in Bulgaria, could provide specific
information related to corruption in the privatization of the
Bulgarian Telecommunications Company (BTC) or any other state-owned
enterprise, although both stated that the BTC has not yet been
privatized (25 Feb. 1999; 2 Mar. 1999). Nor could either source
provide specific information on any involvement of organized crime
in privatization activities.
The President of Transparency International
provided the following information in response to written questions
from the Research Directorate pertaining to allegations of
corruption in privatization activities, the possible involvement of
organized crime, and the accessibility of state protection:
- No one can be prosecuted legally in Bulgaria for reporting corruption cases.
- There is freedom of speech and free press in the country, which makes it absolutely possible to report corruption cases in public.
- There is still a possibility of persecuting a person who has reported a corruption case by vested interests involved or even on the part of some officials - members of public institutions who are violating the law by persecuting a corruption case reporter.
- The level of efficiency of prosecuting corrupt officials by the Executive and legal institutions is considerably low. This opens a significant space for illegitimate revenge or "punishment" operations against corruption cases reporters whenever significant group interests (public or private) are offended.
- Considering the opportunity of emigration from the country motivated by illegitimate persecution, based on corruption cases reporting, I would consider it possible and requiring serious attention (2 Mar. 1999).
In offering his personal observations on
corruption in Bulgaria, the Executive Director of the Civil Society
Development Programme in Bulgaria said that there have been
allegations of corruption in "nearly every deal" involving "over
1,000 privatisation transactions [that] will be carried out.
...However, these types of crimes are very difficult to prove" (25
Feb. 1999). When asked about the possible involvement of organized
crime in privatization ventures, the Executive Director claimed:
"It is clear that different economic groups are having a lot of
interests around the privatisation deals and for some of the groups
there are allegations of relations with the organised crime
groups." To a question about the availability of protection in
these instances from the state, the police, or the courts the
Executive Director said that in his opinion, "if there is
protection it is inadequate in any case."
According to the Bureau of European and
Canadian Affairs of the US Department of State: "mass privatization
finally began [in Bulgaria] in January 1996 and auctions began
toward the end of that year. The second and third rounds were
conducted in spring 1997" (Oct. 1998). The US & Foreign
Commercial Service of the Department of State stated in 1998 that
"privatization of Bulgaria's economy continues to be a top priority
of Bulgaria's government. Foreign investors are being actively
sought to purchase and infuse technology and capital in enterprises
that have a viable future with new investment." According to the
National Trade Data Bank of the US Department of Commerce, in 1995
the Bulgarian Telecommunications Company was on a government list
"of companies not available for privatization," but the Prime
Minister had directed that a privatization strategy be developed
for it (n.d.a). The same source states that, "one of the
privatization transactions that started in 1997 was that of
Bulgarian Telecommunications Company, for which the GOB chose
Deutsche Morgan Grenfell as consultant (n.d.b). Please see the
attached document from the National Trade Data Bank for further
information on privatization in Bulgaria (ibid.).
There have been general reports of
corruption in state-owned companies in Bulgaria (Sofia
Kontinent 21 Feb. 1997; Sofia Standart News 25 Feb.
1997; Sofia Pari 3 Sept. 1998; National Trade Data Bank
n.d.c). There have also been reports that "quasi-criminal
groupings...control large sections of the economy and...milk the
state for favours" (Reuters 13 May 1996) and that, according to
Bulgaria's Interior Minister, "the ramifications of the mafia
presence in Bulgaria are terrifying, and reach the highest spheres
of power" (Business Day 10 Oct. 1997). However, according
to the Bulgarian representative of an international security firm,
members of organized crime "are concentrated in certain sectors,
above all in prostitution, contraband goods and drugs, rather than
(usually) legitimate business sectors (EIU 2 July 1998).
Bulgaria's President has acknowledged the
existence of corruption and a slow pace of reform (Sofia Korizont
Radio Network 26 Mar. 1997), and there have also been reports of
government action including the dismissal of state officials, plans
for arrests and prosecutions, and efforts to coordinate
anti-organized crime activities with other European nations (ibid.
21 May 1997; ibid. 6 June 1997; Sofia Standart News 25
Feb. 1997; AP 21 July 1998). Furthermore, according to the National
Trade Data Bank:
Bulgaria has laws, regulations, and penalties against corruption, including a 1996 Law for Measures against Money Laundering. Bulgaria became a signatory to the OECD Anti-Bribery Convention in December 1997. The government procurement system is far from transparent (the Government Procurement Law of January 1997 has yet to show a track record), some business decisions seem to be made partly on political grounds, and some courts and law enforcement officers may be susceptible to influence (political or economic), but large-scale corruption in government circles does not appear to be as much of a problem as are bureaucratic impediments and regulations. U.S. firms have suspicions of corruption as an obstacle to foreign direct investment. Bribery is a criminal act under Bulgarian law for both the giver and the receiver. Penalties range from three to fifteen years imprisonment, depending on the circumstances of the case, with confiscation of property added in more serious cases. In very grave cases, the Penal Code specifies prison terms of 10 to 30 years. The 1996 Money Laundering Law also applies to bribes. Bribing a foreign official is a criminal act. Bribes cannot be considered as business expenses for tax purposes. The Prosecutor, the National Investigative Service, and the police are responsible for combating corruption. There have been trials and convictions of enterprise managers, prosecutors, and officers in the Ministry of Internal Affairs for corruption.
A major priority of the new Bulgarian government is to fight organized crime and corruption in the public and private sphere. Changes in the Penal Code and the Criminal Procedures Code were enacted in July 1997. It remains to be seen whether these will have the desired effect. (n.d.d)
This Response was prepared after
researching publicly accessible information currently available to
the Research Directorate within time constraints. This Response is
not, and does not purport to be, conclusive as to the merit of any
particular claim to refugee status or asylum.
References
Associated Press 21 July 1998.
"Bulgaria, Spain to Cooperate in Tourism and Against Organized
Crime." (NEXIS)
Business Day [South Africa]. 10
October 1997. "Central Europe Held in Thrall by Mafia." (NEXIS)
Civil Society Development Programme,
Sofia, Bulgaria. 25 February 1999. Correspondence from Executive
Director.
Economist Intelligence Unit (EIU). 2
July 1998. "Bulgaria Company: Crime Takes Three Forms." (NEXIS)
Reuters. 13 May 1996. Gareth Jones.
"Bulgaria Economic Crisis Pinpoints Lack of Reform." (NEXIS)
Sofia Kontinent [in Bulgarian].
21 February 1997. "Bulgaria: BSP's Purvanov Views NATO Decision,
Election Campaign." (FBIS-EEU-97-035 21 Feb. 1997/WNC)
Sofia Korizont Radio Network [in
Bulgarian]. 6 June 1997. "Bulgaria: Customs Chief Reports
Restructuring, Corruption Clampdown." (FBIS-EEU-97-157 6 June
1997/WNC)
_____. 21 May 1997. "Bulgaria: Kostov
Announces Government's Priorities to Assembly." (FBIS-EEU-97-141 21
May 1997/WNC)
_____. 26 March 1997. "President
Stoyanov Rejects BSP Complaints on Sackings." (FBIS-EEU-97-085 26
Mar. 1997/WNC)
Sofia Pari [in Bulgarian]. 3
September 1998. "Bulgaria: Commentary Views Stoyanov's Remarks on
State Bureaucracy." (FBIS-EEU-98-246 3 Sept. 1998/WNC)
Sofia Standart News [in
Bulgarian]. 25 February 1997. "Bulgaria: Prosecution of 'Corrupt'
High-Ranking Officials Viewed." (FBIS-EEU-97-037 25 Feb.
1997/WNC)
Transparency International - Bulgaria. 2
March 1999. Correspondence from President.
US Department of Commerce, National
Trade Data Bank. n.d.a "Bulgaria: Selling to Bulgarian Telecomm.
Co." [Internet] http://:tradeport.org/ts/countries/bulgaria
[Accessed 22 Feb. 1999]
_____. n.d.b. "Bulgaria: Economic Trends
and Outlook." pp. 3-5. [Internet] http://:tradeport.org/ts/countries/bulgaria
[Accessed 22 Feb. 1999]
_____. n.d.c. "Bulgaria: Political
Environment." [Internet] http://:tradeport.org/ts/countries/bulgaria
[Accessed 22 Feb. 1999]
_____. n.d.d. "Bulgaria: Investment
Climate Statement." [Internet] http://:tradeport.org/ts/countries/bulgaria
[Accessed 22 Feb. 1999]
US Department of State, Bureau of
European and Canadian Affairs. October 1998. "Background Notes:
Bulgaria." [Internet] http://:tradeport.org/ts/countries/bulgaria
[Accessed 22 Feb. 1999]
US Department of State, US & Foreign
Commercial Service. 1998. "Bulgaria Investment Forum." [Internet]
http://:tradeport.org/ts/countries/bulgaria
[Accessed 22 Feb. 1999]
Attachments
US Department of Commerce, National
Trade Data Bank. n.d.b. "Bulgaria: Economic Trends and Outlook."
pp. 3-5. [Internet] http://:tradeport.org/ts/countries/bulgaria
[Accessed 22 Feb. 1999]