Against the backdrop of a new public procurement for gas supply for the capital's public transport, questions about the need for intermediaries, the size of the commissions and the lack of effective control over municipal companies are emerging again. What's happening… Simeon Stavrev, municipal councilor from “Yes, Bulgaria“, speaks to FACTI.
– Mr. Stavrev, you have been commenting on a very interesting topic recently about gas supplies for public transport, since the public procurement is currently open. Tell us more – what is it about?
– Gas is purchased as fuel for the service of public transport.
– This is clear, because years ago we purchased gas buses again through a public procurement procedure to make them more environmentally friendly…
– Yes, but now the problem with the public procurement procedure for me is twofold. First, we will again be purchasing gas through an intermediary, and it is known that the company has a license to purchase gas directly. And the second is that a long contract will be concluded, because the public procurement procedure is for three years. This contract will outlive the term of this Municipal Council and the mayor. Our term is for two more years.
I do not understand how the head of the municipal company allows himself to make such a long public procurement procedure, given the fact that he is “temporary“ – and he was elected last summer. We are talking about “Stolich Autotranslatov“ EAD.
Last year there was a similar procedure, but it was only for one year. Then I actively spoke on the topic and finally got a "slap in the face" lawsuit, in which it was written that I "slandered" the head of the transport company and told him that he had wasted 2.42 million leva on commissions.
Then and now my thesis is that they have a license to buy gas. I saw it – the license was in front of me at the time. And I asked him repeatedly: &ndquo;Why, since you have a license, do you use an intermediary?“ I received all kinds of excuses, but no one explained exactly. Very strange.
– But there was a contract last year…
– Finally, last year they signed a contract, in which the gas cost, I think, about 16.6 million leva, and the payment to the intermediary was 2.42 million leva. And then many felt affected and sued me for it.
This year, as a logical question, I ask again: “Is this license still valid?“ Because then I saw that the license existed.
– Okay, and don't these things like orders go through the Municipal Council for discussion?
– Not anymore. This is the big problem. Until 2019, all such public procurements – at least according to my information – went through permission from the Municipal Council, there was a special commission. The heads of the companies were questioned, justification was requested – what is the license, why is the price like that, why does it cost so much. There was some control.
Now – since GERB has only an economic majority – this topic has been removed from the agenda.
They changed the management of “Toplofikatsiya“, of the transport companies...
People have been there “temporarily“ for a year and a half now. What is this “temporarily“? No one wants to replace them. They are absolutely uncontrolled.
Here is an example: in this case, I calculate that the intermediary will be paid 4.18 million euros in commission for supplying gas over the next three years. The calculation is simple: the company needs an average of 14,500 MWh of gas per month from its three garages – “Druzhba“, “Malashevtsi“ and “Zemlyane“ for the garages. With a commission of 8 euros/MWh: 14,500 MWh at 8 euros/MWh equals 116,000 euros per month for the intermediary. Over 36 months, this will cost us 4.18 million euros. The order has an estimated value of 32.2 million euros excluding VAT. In your opinion, is this profitable for Sofia residents?
I don't understand why the company continues to work with an intermediary, since it still has a license to trade in gas. This is unjustified.
– Has anyone commented on the public procurement in the municipality?
– That's why I expect answers – from both the head of the company and the municipal council.
- Can the intermediary be avoided?
- In my opinion, it can be – it was possible last year, and this year too. If possible, not only the municipal council, but also the economic police and the prosecutor's office should intervene here.
I know that signals have been filed with the prosecutor's office and the economic police. But I continue to believe that I said the right thing – and that this is not in the public interest.
– And who issues the license for the gas trading company?
– The license is issued to the company by the Energy Regulatory Commission. This happened on September 19, 2024. The license lists the names of precisely specified employees of the company who have the right to trade. And as far as I remember, it was received at least a month after the new interim management took office. That is, – they received it, and then they did not use it.
Last year, when the public procurement was launched, they already had a license. Now they are launching a procurement again, hiring an intermediary again, doing it the same way again.
– But now they are making a three-year contract?
– Yes. And one more thing. The order is being made now – in the winter season, when the price of gas is generally higher. They buy gas from “Balkan Hub“, where the prices are higher. They can also from “Bulgargaz“ to buy without paying the brokerage commission. This is inexplicable. And that is why I plan to propose again the creation of a permanent commission to the municipal council, which would control the municipal companies. What is happening now is nothing like anything. A temporarily appointed person is spending millions without control.