site.btaParliament Kills Bill Barring Private Enforcement Agents from Recovering Public Debts

Bulgaria's National Assembly on Wednesday defeated at first reading draft legislation cancelling an option of the State assigning private enforcement agents to recover public claims. The bill revising the Private Enforcement Agents Act was tabled by the Morality, Unity, Honour (MECh) Parliamentary Group.

Under the provision that thus remained in effect, one or more private enforcement agents can be assigned to recover public debts by the state bodies competent to identify such receivables. 

According to another proposed amendment that was rejected, private enforcement agents would have been stripped of their immunity from detention in the course of, or in connection with, the performance of their duties except in the act of committing a serious criminal offence.

The legislature also voted down a proposal to waive fees and costs for the performance of enforcement steps within the time limit for voluntary compliance.

The Debate

Hristo Rastashki MP of MECh: Private enforcement agents are a problem for society as a whole because their hands are untied. Why should private enforcement agents enjoy immunity while doing their job, why should they not be held responsible under the Penal Code, under the law? On the other hand, it is not right to charge a fee for coercive enforcement from an execution creditor who has received a voluntary compliance notice.

Branimir Balachev MP of GERB-UDF: It is debatable whether private enforcement agents can handle public debts as well. Not only the National Revenue Agency (NRA) but local authorities, too, incur public debts. The NRA territorial divisions indeed find it difficult to recover public debts, they are understaffed and are usually busy collecting larger receivables. Hence the option for private enforcement agents to share in the recovery of these debts. Private enforcement agents do not need a functional immunity. Regarding the charges they collect, the Justice Ministry must update the effective rate schedules in general.

BSP-United Left Floor Leader Nataliya Kiselova: My parliamentary group will back the bill.