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Agreement for BGN 1 billion between GERB and PP in the Bulgarian Waterworks Holding

Are the personnel in the Waterworks Holding competent to solve the problems for which the company was created, or are they only distributing the money in it to the right companies?

Aug 26, 2024 19:09 108

Agreement for BGN 1 billion between GERB and PP in the Bulgarian Waterworks Holding  - 1
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Who - who is in "Bulgarian Plumbing Holding" EAD and what exactly works there? How is BGN 1 billion distributed to Bulgarian taxpayers? Isn't it strange that in the waterworks holding there is complete understanding between GERB and "We continue the change", which are otherwise publicly accused of corruption? Are the personnel in the plumbing holding competent to solve the problems for which the company was created, or are they just distributing the money in it to the right companies? Why did Prime Minister Glavchev skip over them when measures to deal with the aridity in which Bulgaria has fallen should be discussed? These and other questions are answered by a reader of LIBERTA.BG, who wished to remain anonymous, and who sent a detailed comment on the subject to our editorial mail, which deserves attention.

We remind you that the last Cabinet "Borisov" created in 2020 a State Water and Sewer Holding, which would unite all water transmission companies in the country, with a capital of BGN 1 billion from the state budget. Then Prime Minister Boyko Borisov demanded that all the water and sanitation companies in the country be united into one. The occasion was the water crisis in Pernik, and his idea - to control the infrastructure more easily, to make repairs and rehabilitation of the water supply network. After that, several offices of President Rumen Radev, Kiril Petkov's government with ITN and BSP are rotated and we reach 2023, when the triple coalition "GERB-"PP-DB"-DPS" governs. or to put it another way - the rotating cabinet "Denkov-Gabriel", with coalition partners of Kiril Petkov, Hristo Ivanov and Asen Vasilev - Boyko Borisov and Delyan Peevski. Then the site "Mediapool" reported:

"The regional ministry has undertaken a complete change in the state water and sanitation holding, where the GERB government poured BGN 1 billion to improve the water supply and infrastructure, and instead the company has so far only given out loans to its subsidiaries – the state water operators, and mainly to repay their debts.

On Friday, the department announced that the entire Board of Directors had been removed and the holding now has a management and supervisory board. This was the structure until January 2021, when it was changed during one of the successive appointments.

Thus, only the director Irena Georgieva remains from the old management, but she will now represent the holding together with 33-year-old Lozko Lozev, who is among the new appointments and actually becomes the first director, and Georgieva will be the second. Lozkov will be the chairman of the Board, and Georgieva – his deputy. The other two new members of the board are Vladimir Bibov and Atanas Boyadzhiev.

Teodora Pakuleva, Plamen Manolev, Lyuben Petrov and Bozhidar Spasov were removed from the management.

The plumbing engineer and long-time lecturer at the University of Architecture, Construction and Geodesy (UASG) Prof. Dr. Eng. Gancho Dimitrov as chairman, as well as Kiril Simeonov, Rositsa Dimitrova, Dafinka Semerdzhieva, have been appointed to the supervision returned as a unit in the holding. and Bogomil Petkov.

The decision on the change rests with the regional minister Andrey Tsekov, who is from "We continue the change".

We also offer the very interesting and currently very relevant comment of the reader of LIBERTA.BG, without editorial intervention:

"I am watching the news and understand that Prime Minister Glavchev has requested urgent measures to deal with the drought. Ordered experts from 4 Ministries, Ministry of Land Development, Ministry of Agriculture, Ministry of Agriculture and Ministry of Energy to meet immediately and propose quick solutions.

I immediately have two questions:

Why is the Bulgarian Waterworks Holding not included in this expert council?

Why, in his media appearances, the Chairman of the Management Board of the Water and Sewerage Holding (Eng. Lozko Lozev) only offers long-term measures to deal with water scarcity - 5-year and multi-year “strategies" for investments?

Let's first answer who is assigned to manage the water supply sector? Do they have expertise and what can we expect from these people?

So:

Board of Directors of ViK Holding according to reference from the Commercial Register:

1. Representative - Irena Kostova Georgieva - lawyer and doctor of law.

„ The 34-year-old Irena Georgieva was recruited to work at the Water and Sewer Holding at the time of GERB, where she was responsible for public procurement. According to sources, she was lobbied for her current appointment by the former head of VK Holding from the time of GERB, Iliyan Iliev, whose advisor Georgieva was. https://4vlast-bg.com/archives/549633

2. Vladimir Todorov Bibov - corporate banker, Member of Continuing the Change

3. Lozko Stefanov Lozev - Plumbing engineer from Haskovo, Chairman of the Board of Directors and for a short time a member of Parliament from Continue the Change

4. Atanas Andonov Boyadzhiev - manager (whatever that means)

As a state structure, we should be informed from the website of ViK Holding about their work and what they undertake in such crises (the water crisis in Pernik was the reason for the creation of the holding). If you visit the site (https://www.vikholding.bg/) you will see some copied post news from other institutions and the most common - Change of managers of Water and Sewerage Companies.

In fact, they seem quite flexible. In less than a year, a significant part of the managers of water and sanitation companies selected by the holding have already been replaced. The decision is again up to the Board of Directors, despite the fact that several annual management contracts were signed after competitions.

I wonder... How did this team of lawyers and managers hammer out such a strategy in less than a year? - Isn't a strategy prepared by experienced people from the branch and by plumbing specialists (I don't think Mr. Lozko Lozev meets the conditions. He is the former chief engineer of Haskovo plumbing and a few days ago he fired his boss for poor results. He forgot that was part of the Haskovi plumbing team and has no responsibility for the state of this Company?).

Well... the Board of Directors of VK Holding are not required to be plumbing specialists. They are:

- Administrators and specialists with the capacity to manage and spend BGN 1 billion;

- Controlling authority of the procurements under the ZOP, announced by the water and sanitation companies...Of course, the "correct" companies.

However, if I close my eyes and mentally walk the corridors of the Holding... “I can't see" employees and specialists who can develop a strategy for Bulgaria's water supply.

Now you too can answer the question - Why did the Prime Minister of the Republic, Glavchev, not call these people to propose urgent measures to deal with the water crisis?

- Because they can't! They are not capable. They only expect party commands - to replace someone with someone else in order to realize some interest... to be “One of ours".

I am looking at the composition of the management of ViK Holding, the political battles in the "assembly" and mutual accusations of corruption. I am rather puzzled by the understanding between GERB and PP personnel, as well as the media silence in preparation for the absorption of about BGN 1 billion from the capital of the Holding and more than BGN 1 billion of European funds from OPE and PVU. It is easy to track at https://app.eop.bg/ where this money will go...

The creation of the Plumbing Associations years ago had one main goal - to give the plumbing companies the opportunity to apply for European programs for the construction and reconstruction of networks and facilities. In fact, the idea makes sense and allows for a faster pace of problem solving. Before the creation of these Associations, the municipalities were the main driving force in attracting investments to improve the water supply in the country (both from the state budget and European funds).

In the situation of a water crisis, often in the statements of the interviewed water and sanitation specialists, including Lozko Lozev, the hope is expressed that a large part of the problems will be solved with the OPE funds. The reality is slightly different, as the funds allocated by Europe are aimed at achieving compliance with Directive 91/271/EEC on the treatment of urban waste. Accordingly, the main focus is purification and removal of waste, and not so much on actions to improve water supply https://www.eufunds.bg/bg/opos/node/14587. A question arises - What will be purified and removed if there is nothing to come to these purification facilities?

It is here that the main role of Bulgarian Waterworks Holding should be. With his expertise, he should control and guide the efforts of the water supply companies to solve the problems of the residents with access to drinking water. There should be a clear plan, starting from the settlements with annual water regimes in the summer. It is proper for VK Holding to be the driving force behind the implementation of good practices in water supply companies, but in practice this does not happen.

From the actions of this leadership, one main thesis is formed - political dismissals and appointments, conjunctural actions according to the power and no efforts for leadership when crisis situations arise. Looking at the professions of the Board of Directors of the Holding, we get the impression that they lead a bank, but not such a heavy sector as water supply and sewage.

And maybe the task is the "correct" allocation of funds directed to the sector to the right people, regardless of whether they have the capacity and desire to improve the quality of life of citizens?"