site.btaAnti-Corruption Fund Reveals Shelved Indictment in BGN 54 Mln Hemus Highway Fraud, Opposition Pushes for Parliamentary Inquiry

The Anti-Corruption Fund Thursday published a shelved draft indictment against several individuals for the embezzlement of BGN 54 million earmarked for the construction of the Hemus Motorway. Despite the scale of the case, the indictment, prepared in the autumn of 2023, was never submitted to the court. Sofia City Prosecutor Ivaylo Zanev and other prosecutors working on the investigation were removed from the case.

The indictment accused the heads of three major road construction companies of forming and leading an organized crime group that embezzled over BGN 54 million available for the construction of Hemus. 

In a comment for the press in the corridors of Parliament, Ivaylo Mirchev MP (Continue the Change - Democratic Bulgaria) said that his group is moving for formation of a parliamentary committee of inquiry to look into the matter. "It will give some answers about why Bulgarians cannot use Hemus Motorway, and why car crashes and traffic jams are so frequent," Mirchev said.

What the indictment shows

The indictment published by the Anti-Corruption Fund reveals that the scheme involved outsize advance payments by the state-owned Avtomagistrali EAD to private contractors for highway segments where no construction had begun. For example, Evropeiski Patishta received nearly BGN 343 million and while Vodnostroitelstvo – Blagoevgrad was paid over BGN 84 million — 86% of the contract's value.

The funds were funneled through a network of shell companies and withdrawn in cash via 66 separate transactions from International Asset Bank. Over BGN 54 million in cash was transported to a storage facility owned by Vodnostroitelstvo – Blagoevgrad. The alleged embezzlement relied on fake subcontracting, use of cheaper materials, lower labor costs, and fraudulent invoicing — creating hidden profits rather than delivering infrastructure.

Despite identifying nine accused individuals, including Groma Hold owner Hristo Savev as the group's leader, and a clear money trail, the prosecution never proceeded to court. The ACF says this is strong evidence that Bulgarian institutions failed to act in the public interest.

The scandal around Hemus Highway dates back to 2021, when a report by the National Audit Office revealed that Avtomagistrali EAD had been granted nearly BGN 4 billion without public tenders, and had unlawfully subcontracted work, the ACF recalls. One individual, Borislav Kolev, was charged, but the case's current status is unclear. 

The scheme involved Bul Stroy Group IG EOOD and Euro Stroy Construction EOOD, which were often used by Vodnostroitelstvo – Blagoevgrad and Evropeiski Patishta as subcontractors in construction projects commissioned by the Road Infrastructure Agency and Avtomagistrali. In turn, Bul Stroy Group IG and Euro Stroy Construction redirected the funds to four companies without employees and without any business activity. Thus, over the course of a year and three months, from June 18, 2020 to September 8, 2021, four individuals (Danail Georgiev, Toma Yankov, Krasimir Mitrikov, and Georgi Shkendov) visited the main branch of International Asset Bank in Sofia almost daily and withdrew a total of BGN 54,097,641.65 in cash. On eighteen occasions, they left the bank with cash amounts exceeding BGN 1 million, with the largest single cash withdrawal amounting to BGN 1.956 million. After leaving the bank's headquarters, the four handed the money over to Borislav Kolev (the only one charged) and Georgi Georgiev, who then transported it to the warehouse base of Vodnostroitelstvo – Blagoevgrad, the indictment shows.

The ACF criticizes the lack of accountability for the management of Avtomagistrali and the Road Infrastructure Agency (RIA), both of which authorized large advance payments. Some contracts had up to 99% of funds paid upfront, with no construction yet visible on lots 7, 8, and 9.

The loss caused is far greater than the detriment to the public purse and has affected the economy of the entire Northern Bulgaria and the life and safety of drivers and passengers, the ACF says.

The ACF calls for answers on why the prosecutors who pursued the case were sidelined and whether political protection was involved.

“We continue to wait for answers,” said ACF Director Boyko Stankushev. “Why has no responsibility been sought from those who enabled or participated in this large-scale theft of public funds?”