On July 16, the Management Board of the Bulgarian National Bank will decide whether the decision of the anti-corruption commission on the incompatibility of deputy governor Andrey Gyurov is grounds for his dismissal. This is clear from an interview of the bank manager Dimitar Radev with BTA.
On June 27, the Anti-Corruption Commission announced that Gyurov is incompatible with fulfilling his duties due to participation in a commercial company and membership in a governing body, which are not agreed with the BNB. Andrey Gyurov himself saw this as a political move and appealed the decision.
Here is the entire interview of BNB Governor Dimitar Radev to BTA:
- Mr. Radev, what is the current status of the case with Mr. Gyurov after the decision of the KPK?
- The anti-corruption commission came up with a decision on the incompatibility of Mr. Gyurov with the position he holds in the BNB, which he appealed.
- Should the BNB take any additional actions by law?
- According to the rules of administrative law, the Bank's Management Board is obliged to initiate proceedings and rule on the case within two weeks, but no later than the first regular meeting of the board, which is on July 16.
- In what direction will the BNB pronounce?
- In essence, the Governing Council cannot fail to recognize an act of a competent institution such as the CPC, and thus enter the sphere of its legal competences and powers. Such a development would have not only legal but also political dimensions in the context of policy debates about regulatory and law enforcement agencies. Getting involved in such political debates is unacceptable for an independent, professional and depoliticized institution such as the BNB.
What the Management Board should do is to consider this decision in the context of the principles and rules of central banking and to assess to what extent this violation, already established by the Anti-Corruption Commission, is grounds for the release of its member. This is done according to the procedure under Art. 14, para. 2 of the Law on the BNB, which was introduced with one of the last changes to the law.
- And what are the grounds for dismissing a member of the BNB Management Board?
- They are specified in the BNB Law. There are two grounds for early release of a member of the BNB Management Board – if he does not meet the requirements necessary for the performance of his duties, or if he is found guilty of a serious offence.
- Does this mean that the Board of the BNB can release Mr. Gyurov from his position?
- No. This can only be done by the electoral body, which is the parliament. In this case, the BNB only determines whether the presence of incompatibility is a reason for the release of its member.
- What then is the meaning of the procedure under Art. 14, para. 2 of the Law on the BNB?
- Normally, the Anti-Corruption Commission's decisions on incompatibility are submitted directly to the body for the election of the relevant official, and he can immediately dismiss him from office. In view of personal and institutional independence, which are of primary importance for the central bank, this order is significantly more complicated for the members of the BNB Board. The most important difference is that if the affected person disagrees, he cannot be released early from his position without a decision of the competent court, in this case the Supreme Administrative Court.
- Therefore such a procedure implies…?
- Assumes that it is subject to judicial review. On appeal, the Supreme Administrative Court must rule on whether the BNB's Board of Directors has reasonably accepted the findings of the Anti-Corruption Commission as grounds for release or not. If the court rules against the act of release, Mr. Gyurov will continue his mandate, if the act of release is confirmed, he will be submitted for a final decision by the parliament.
- And what happens with the complaint that Mr. Gyurov has already submitted to the court?
- The expectation is that the court will rule soon, but it may take longer. My understanding is that the main question for the court to decide is whether this appeal is admissible or not, and that depends on its interpretation of whether the decision of the CPC is an administrative or procedural act. The decision on this appeal by Mr. Gyurov does not cancel the procedure we are talking about. It is within the competence of the court to decide whether to combine the consideration of the already submitted complaint and the potential new complaint or to consider them separately.
- Everything seems very complicated from a legal point of view.
- Indeed it is. In this sense, a precedent will be created for solving similar cases in the future, and I strongly hope that there will be none. We are making serious efforts with BNB lawyers and in consultations with leading lawyers outside the bank to ensure that our participation in this process is flawless from a legal point of view.
- To summarize, what is coming is a decision of the Board of the BNB on the case with Mr. Gyurov.
- Yes. We will make the decision on July 16 and announce it publicly.
- Will Mr. Gyurov participate in the meeting of the Board?
- Yes. He will participate in the meeting and can present his position, which will be attached to the decision of the Board. However, according to the current rules, he cannot participate in the voting.