site.btaVarna Municipality’s Accounts Are Temporarily Frozen

The accounts of Varna Municipality have been temporarily frozen by a private bailiff, acting mayor Pavel Popov said Monday. The measure follows a ruling by the Supreme Administrative Court (SAC), which orders the municipality to pay over BGN 2.7 million to two companies. The penalty stems from inaction by the city's chief architect.

In 2014, a detailed development plan was approved, allowing the construction of a park hotel with around 9,000 sq.m. of built-up area above ground, said Deputy Mayor Plamen Kitipov. Investors did not receive a building permit for several years, then in May 2020 one was issued but it was not delivered by year-end. Two years later, the building received Act 14. In 2024, its purpose was changed to residential use, and it was put into operation in March 2025.

After the SAC’s decision on June 17, the Municipality was requested to pay voluntarily on July 11. The administration requested payment extension and on July 31, the funds are expected to be withdrawn directly from municipal accounts. Popov assured that the temporary freezing of accounts would not hinder municipal operations.

The Municipality may file a counterclaim against those responsible for the financial loss. Popov noted he had already asked chief architect Viktor Buzhev to resign, but there has been no response. An internal review is underway to determine if other staff members were at fault in the permit issuance process.

Popov also mentioned that, although currently in custody, Mayor Blagomir Kotsev remains actively involved in managing the city. Communication with him is limited but substantial. Popov added that Kotsev has been appointed by the European Committee of the Regions as rapporteur on the EU's approach to the Black Sea region.