Who is more powerful – God, the Bulgarian court or the State Fund for Agriculture… Logic says that the court is the final instance – at least in earthly life. We will talk less about God, but perhaps it is necessary. And the bad thing in our country is that practice shows that the court's decisions may not be implemented, because we are dealing with the State Fund for Agriculture. The case that we will introduce to you is private, but it shows many things.
The editorial staff of FAKTI received a signal from Tsvetelina Vatovska, who is the manager of a company that purchased a mobile installation for processing essential oil crops. It all started in the distant year 2016. The company applies for support under the Rural Development Program for the period 2014-2020 under Sub-measure 4.2. “Investments in processing/marketing of agricultural products” from measure 4. “Investments in tangible assets”. The application meets all legal requirements. Then the company purchases a mobile installation for processing essential oil crops, the installation is located in the village of Galabets, Pomorie municipality. All necessary documents of the State Fund “Agriculture“, required for financing the project, have been submitted, and all instructions given by the administrative authority have been implemented. But… Is there any effect from this?
To date, the State Fund “Agriculture“ has not exercised its legal competence to conclude the grant financing agreement.
By order dated September 17, 2018, the Deputy Executive Director of the State Fund "Agriculture" denied financing, on the grounds that the investment applied for was not mobile. This denial is subject to appeal before the court. With the entry into force of Decision No. 228 of February 13, 2019 of the Burgas Administrative Court, Order No. 03-RD/3716 of September 17, 2018 of the Deputy Executive Director of the State Fund "Agriculture", which denied financing of the project, was canceled. The court orders the administrative body to take action to secure financing for the project.
An appeal is pending against another court decision of 23.12.2019 by the Supreme Administrative Court - Fourth Department, by which the unlawful order to refuse financing for the investment for a mobile installation was annulled. In these two court proceedings, the State Fund “Agriculture“ was a party and therefore is fully aware of the court's motives.
The Burgas Administrative Court and the Supreme Administrative Court in their court decisions say that the company's claims meet all legal requirements, namely:
- an investment was made to purchase a mobile installation for processing essential oil crops, which is located in a rural area, specified in Appendix No. 3 to the same, namely – on the territory of the Municipality – Pomorie
- all required documents for the financing of the project were submitted by the company, and all instructions given by the administrative authority were also fulfilled
- despite the positive decision of the court, the State Fund “Agriculture“ has not taken any action for more than 5 years to provide the subsidy for which the company applied, although the case has categorically established the existence of the investment made
The following is a letter dated 23.12.2020 to the State Fund “Agriculture“ to exercise its competence to provide financing under the submitted application for assistance.
There is already a court decision of the Supreme Administrative Court of Bulgaria dated 23.12.2019, by which the first unlawful order to refuse financing of the investment for a mobile installation was canceled.
Instead of implementing the court decision, the State Fund for Agriculture refuses financing through inaction - for 5 years.
Otherwise, after applying under an operational program and winning financing, according to Regulation No. 20, the State Fund for Agriculture must verify the company and grant the financing within three months.
This brings us to November 25, 2024, which is almost 9 years after the initial application was submitted. The company receives a second order in a row to refuse financing from Iva Ivanova, executive director of the State Fund "Agriculture". The reason for the refusal was that the company had tax obligations to the National Revenue Agency (NRA) 4 years ago (ed. - this is 2020).
Let's recall
The saga began in 2016, and by 2019 two instances of the court said that the orders of various directors of the State Fund "Agriculture" were illegal and the State Fund "Agriculture" should refund the company money under the program for the purchase of equipment.
The reason for refusal in 2024 states that during an official inspection, namely on 19.07.2021 for the presence and absence of overdue obligations to the NRA, it was established that the company and Tsvetelina Vatovska - as an individual, have obligations to the budget. At the same time, documents for the deferral of the obligation were not explicitly requested by the State Fund for Agriculture.
So in a case from 2016, the problem turns out to be obligations to the NRA from 2021? During these years, different directors of the State Fund "Agriculture" have changed, they have issued illegal orders that have been rejected in court, without any consequences arising from this.
Once the Supreme Administrative Court made a decision and gave mandatory instructions to take action to ensure financing for the project...
5 years later from the Supreme Administrative Court's decision, the State Fund "Agriculture" continues to refuse its implementation.
The company currently has current tax liabilities to the National Revenue Agency, but is in the process of negotiating an agreement to reschedule these liabilities. However, are these financial difficulties of the company not the result of the deliberate delay in the provision of approved European funding by the State Fund “Agriculture“?
On 25.05.2025, a new court decision was issued by the Burgas Administrative Court, which again overturned the illegal order to refuse funding by the State Fund “Agriculture”. This court decision confirms in a categorical manner that the refusal of the State Fund “Agriculture” is illegal and that the administrative body should provide the project with free financing, as stipulated in the previous court decisions.
There is already the 3rd court decision in a row, and the administrative body continues to fail to implement the court decisions.
And so for almost 10 years now…
So we have a Bulgarian court – Burgas Administrative Court and the Supreme Administrative Court, which have three rulings to the State Fund “Agriculture“ to fulfill its obligations to the company and to pay part of the amount for the purchase of the oilseed distillation plant under the Rural Development Program, but there is no result. What if YOURS has ruled… For this, it seems appropriate to turn to the Lord. “Our Father, Who art in heaven! Hallowed be Thy name; Thy kingdom come; Thy will be done, as in heaven, so on earth; give us this day our daily bread, and forgive us our debts, as we forgive our debtors; and lead us not into temptation, but deliver us from the evil one... Make the Ministry of Agriculture “Agriculture“ comply with the laws and court decisions in Bulgaria“. Amen.