The European Public Prosecutor’s Office (EPPO) is investigating a possible fraud case against a private Bulgarian company suspected of knowingly submitting false data for its annual reports.
The main issue here is the possible falsification of data on emissions within the framework of the EU emissions trading system (ETS).
A private company in charge of verifying greenhouse gas emissions from thermal power and heating plants is under investigation in Bulgaria for allegedly submitting falsified reports to the competent national authorities.
According to the investigations, from 2017 to date, the company knowingly provided false data and documentation for the annual reports on greenhouse gas emissions from thermal power plants and heating plants in Bulgaria in order to report lower emissions under the EU Emissions Trading Scheme.
It is estimated that the underreported emissions submitted to national authorities resulted in millions of euros in losses to the EU and national budgets in the form of unpaid amounts for actually consumed greenhouse gas emissions. In addition, the unreported emissions also had an impact on air quality in Bulgaria.
More than 40 searches were carried out in eleven Bulgarian cities. Investigators confiscated mobile phones, laptops and extensive documentation related to the investigation. The investigation has not yet been completed.
Dozens of searches and investigations were carried out on Monday, EPPO said. The raids came just a week after media, including EURACTIV, reported that EPPO was facing staffing problems. Some EU delegated prosecutors working on VAT and EU money fraud cases in Bulgaria have left the post, while others have already applied for other posts.
Various media reports have linked the owners of the power plants to the energy oligarch Hristo Kovachki. Officially, he is her advisor.
Interior Minister Ivan Demerdzhiev declined to provide further information while the investigation is ongoing. “We have been working on the investigation under the direction and with the instructions of the ЕPPO for a long time. I’m happy with the level of interaction here. Our work is done, it is precise,” Demerdzhiev told Bulgarian National Radio.
The legal advisor of one of the wanted thermal power plants, Julian Semerdzhiev, stated that it will continue its activities in normal production mode. He added that the company is cooperating with investigators. “At the moment there are no problems, neither ecological, nor technical, nor anything else that worries us. The inspection itself doesn’t worry us either. We have told the inspectors that we will give them our full support,” he said, expressing concerns that the action could be related to the upcoming parliamentary elections.
The EU Emissions Trading Scheme is one of the EU’s key actions to mitigate climate change and the world’s first carbon market. It aims to create an efficient mechanism to reduce greenhouse gas emissions. Under the EU Emissions Trading Scheme, companies must purchase carbon credits that cover their carbon emissions.
Source : Euractive