Inspection in the Road Infrastructure Agency: How Were Billions Spent on Roads?

Caretaker Prime Minister, Andrey Gyurov, on March 25, ordered an investigation into the Road Infrastructure Agency, demanding a clear explanation of how funds allocated for four years for road repairs were spent in just one. The issue of road conditions and the use of public funds has come under renewed scrutiny following recent data and audits conducted by the Ministry of Regional Development.

The move comes amid statistics showing that Bulgaria tops a negative EU ranking for the number of road fatalities.

Opening today’s cabinet meeting, Gyurov highlighted the link between poor roads, spending, and human lives.

“In a country with so many road accident victims, if corruption is devouring the funds for road repairs, this is not just theft of money – it is truly a theft of lives,” he said.

• Caretaker PM Andrey Gyurov: 'Corruption That Devours Road Repair Funds Is a Theft of Lives'

The caretaker Prime Minister called on the caretaker Minister of Regional Development to provide a clear account of how funds allocated for four years of road repairs were spent in just one.

Andrey Gyurov, Caretaker Prime Minister: “And how is it that protests are still taking place across the country over the poor state of our roads – potholes and ruts – when the money has already been spent? Even Road Assistance has protested because funds in the Road Infrastructure Agency are being stolen rather than used for repairs.”

The caretaker government inherited a massive contract for guardrails, issued in the final hours before the change of power. Questions have been raised about how road maintenance will continue after the winter season, given that funds have been exhausted and the roads remain dangerous.

“That is why I strongly appeal for clear information. I specifically call on the Ministry of Interior, if any crimes have been committed, to investigate swiftly, rigorously, and thoroughly, so that we can all understand what is happening within this agency,” Gyurov said.

The caretaker Minister of Regional Development stated that audits of public procurement and road repairs are already underway. Irregularities have been identified in the €590 million five-year guardrail contract, as well as in contracts for ongoing road maintenance and repair worth €2.262 billion.

Nikolay Naydenov, caretaker Minister of Regional Development and Public Works: “As of 19 February this year, the value of assignments under these contracts amounts to €2.251 billion – nearly 100%. I would like to emphasise that this budget was originally planned for four years. In other words, 100% of the resources for ongoing road maintenance and repair have been spent in just a year and a half.”

The caretaker minister described the results of the financial analysis of the Road Infrastructure Agency (RIA) as extremely worrying.

Total liabilities of the RIA currently stand at €528 million under these already executed contracts. One of the first measures will be to limit so-called “preventive repairs,” where the ministry says the largest sums are being spent.

As another emblematic example of poor planning within the RIA, Naydenov cited the €10 million allocated by the state in November last year for hosting the “Giro d’Italia” cycling race in Bulgaria. According to RIA planning and additional inspections, this sum had escalated fivefold to €55 million by the end of February – just two months later.

Reports have already been filed with the Ministry of Interior against anyone found misusing public funds.

Nikolay Naydenov, careaker Minister of Regional Development and Public Works: “Sooner or later, the truth will come out. And let me emphasise: don't blame the player, blame the game. For me, what matters more is what we do from this point onward.”

Thecaretaker minister personally committed to making both contract awards and all associated agreements as public as possible. To achieve this, they will be published online.