News from Bulgaria / Jan. 4, 1996

From: [email protected] (Embassy of Bulgaria)

Bulgarian Telegraph Agency Directory

CONTENTS

EMBASSY OF BULGARIA WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

BULLETIN OF NEWS FROM BULGARIA

[01] PRESIDENT ZHELEV RETURNS GOVERNMENT FINANCIAL CONTROL ACT

The Government-sponsored act passed in Parliament on December 21, 1995. Under the law, the task of the institutions of state financial control shall be to protect the property interests of central and local government in the course of transformation and privatization of companies. They shall be authorized to carry out tax audits, without duplicating the tax authorities.

The act expands the range of government financial control. Such control, so far exercised over state-owned companies, shall be exercised over joint-stock companies, cooperatives, nonprofit corporations and foundations, regardless of the source of financing. According to the sponsor's reasoning, this would ensure more effective safeguards against financial and economic crime and more effective protection of individuals' property interests.

In his reasoning, the President says the new law revives some communist-time principles. According to him, it does not strengthen, or provide new, safeguards or effective control mechanisms for units which the government owns fully, or in which it has an over 50 per cent stake.

The extension of government control to units the larger part of which is in private hands, is unjustified, and runs counter to the principle of inviolability of private property, the head of state says. The President sees in the law a danger of inadmissible government infringement of the right to private property.

According to him, the government financial control institutions would duplicate other institutions. The law would put a brake on foreign investment in joint ventures and privatization in Bulgaria, the President also says.

[02] PRESIDENT ZHELEV MEETS NATIONAL BANK GOVERNOR VULCHEV

In the first quarter of 1996 a mission of the International Monetary Fund will visit Sofia. World Bank officials are also scheduled to come here. A new standby agreement will be negotiated. In an interview in today's "Novinar" the central bank Governor says three missions of the World Bank and the IMF are expected in Bulgaria in 1996. Vulchev told the press today that Bulgaria has the resources required to meet its commitments in "the year of large payments" to its foreign creditors but the National Bank of Bulgaria (BNB) is facing the difficult task to use these resources thriftily and at the same time support the lev-dollar exchange rate.

Zhelev and Vulchev discussed the BNB governorship. Different schools of thought mention three possible dates as the end of Vulchev's term of office: this January 9, the fifth anniversary of his appointment; June 1996, five years after the passage of the BNB Act; or 1998, five years after Parliament voted for his remaining in office on his request.

Vulchev, who has been at the helm of the central bank since 1991, today assured Zhelev of his intention to quit, expressing a hope that Parliament would grant his request. Vulchev, referred to as a possible Socialist presidential nomination, today denied rumours that he would go into politics, diplomacy or business. "It does not befit a former BNB chief to start a private company," he says in an interview in "Novinar".

It emerged after the meeting that Vulchev did not favour any particular candidate for the BNB governorship. Asked to comment on the nomination of Socialist MP Atanas Paparizov, a former foreign trade minister, Vulchev said he would be pleased at his election. Interviewed in today's press Vulchev said that his successor and his team should have "strong nerves, a well-balanced policy, [and make] no radical changes". "Many things should be changed in the banking system but this should be done smoothly, without unreasonable suggestions which, unfortunately, are not lacking," said Vulchev.

PRESS REVIEW

[03] POLICE OFFICERS GO ON TRIAL

[04] ANDREI LOUKANOV INTERVIEWED ON RADIO FREE EUROPE

[05] ORION VS. LOUKANOV

[06] CONTINGENCY RESERVE GRAIN ON THE MARKET

Citing the BBC, on its front page "Continent" reports of the arrest of six foreigners in West Bengal - five Latvians and a Briton, on charges of dropping arms by parachute to guerrillas in West Bengal. According to an investigation made by British journalist Brian Johnson Thomas of Carlton TV, the Latvian AN 26 aircraft forced to land in India before Christmas was loaded at Bourgas Airport (on the Black Sea). Following allegations by an Indian newspaper last week about a Bulgarian connection in the arms drop, the Bulgarian Government said that contracts for Bulgarian arms deliveries to the Indian Government have always been legal. Brian Thomas is one of the editors of the film on arms transfer from Bulgaria to Rwanda and Burundi, broadcast this summer, "Continent" recalls. This daily adds that the BBC recalled that in West Bengal there are guerrilla detachments until recently subject to a UN arms embargo. Citing reports by Indian media, "Demokratsiya" writes that Radio Free Europe reported that the Indian Central Investigation Bureau has approached the police authorities in Bulgaria, Latvia, Britain, Thailand and Hong Kong for assistance in clarifying the incident.

The comic Kanaleto TV show was put off the air on New Year's Eve not because of censorship but because of disrespect of the political institutions, Bulgarian National Television chief Ivan Granitski says in an interview for "Continent". In an interview for "Troud", Granitski says that by putting the show off the air he saved the prestige of its authors. He says he is dissatisfied with the TV programme on New Year's Eve.

"Continent" runs an interview with Klara Marinova, chair of the parliamentary Radio, Television and BTA Committee. Marinova says that there should be rules to the game at the national radio and TV. According to her, there is no censorship in the national electronic media.

"Continent" reports on its front page of the arrest of the Director of the Sopharma pharmaceutical company, Anton Petrov, on charges of ordering that Tempalgin pills of an expired shelf life be repainted and delivered to the market. This was a consignment returned from Russia in late 1994. The police and the investigation dispose of evidence that pills of expired shelf life are repackaged with a new expiry date at Sopharma, this daily writes citing a lawyer close to the investigation. Anton Petrov was arrested on December 18, 1995 and this is his second arrest since December 1994 when he was charged with smuggling 16 tonnes of formamide.

A Sofianite won 7.5 million leva in the Toto-2 lottery game on New Year's Eve. Thus he became the 46th Toto-2 millionaire. So far the largest win is 13.6 million leva, the happy winner being from Rousse (on the Danube).

[07] BUSINESS PRESS

Vinex Preslav will export 1.5 million bottles of Slunchev Bryag brandy to Russia, according to the deputy manager of the company Georgi Vichev. 140,000 bottles of the Manastirska Izba white varietal wine will be exported to Russia early this year.

The Purvi Mai ordnance factory in Lom (on the Danube) will sell part of its technological equipment to a company in Sudan, "Douma" writes. Thus it will be able to pay the wages it owes its employees from May last year. The plant owes its 140 employees 12 million leva. It sold expensive equipment to an Italian company in 1992, "Douma" recalls.