Manipulated Water Meters and ‘Protection Fee’: New Scandal Involving Former Head of Burgas Water Utility

The Burgas District Court is deciding whether to remand in custody three of the defendants in the Burgas Water and Sewerage Company (ViK-Burgas) corruption case.

They are the company's former director, Tsvetan Mirchev, and two other employees. The fourth defendant, Movement for Rights and Freedoms (MRF) regional chair for Burgas, Hristo Shirokov, will appear before the court tomorrow after he was initially not found in the country but later voluntarily surrendered to investigators.

The defendants are accused of participating in an organised criminal group which, according to the prosecution, extorted "protection money" from dozens of hotel owners.

In return for the payments, water meters were allegedly manipulated using specialised devices so that part of the water consumption would go unrecorded. Instead of being paid to the water utility, part of the money allegedly ended up with members of the scheme.

The Prosecutor’s office has not yet identified who organised the alleged criminal operation involving manipulated water meters and the diversion of funds from the water utility. However, prosecutors claim that the money was passed on to the Movement for Rights and Freedoms regional leader Hristo Shirokov.

• The former director of the Burgas Water and Sewerage Company, Tsvetan Mirchev, was detained again

Hristo Shirokov, MRF regional coordinator for Burgas: "These are pre-election promises by the ruling party, which is now carrying them out — arresting mayors, regional party chairs, activists and members of the MRF. I am here because of politics; I have nothing to do with ViK-Burgas."

BNT spoke to Hristo Shirokov minutes before he was detained again after voluntarily surrendering to investigators upon returning from medical examinations in Turkey. He does not deny knowing the other defendants.

Hristo Shirokov, MRF regional coordinator for Burgas: "I am the regional chairman. A great many people come to my office with problems. If I want to help solve them, who am I supposed to call? Naturally, I have to call someone at a Water Utility.

– It is alleged that you helped hotel owners avoid paying for their water?

Let the hotel owners come forward, let them be questioned, and let them say that I helped them in any way."

Miroslav Iliev, Deputy District Prosecutor of Burgas: "The evidence indicates that these payments were handed over to Hristo Shirokov. We are talking about between 30 and 50 hotels. Witness statements refer to sums ranging from €10,000 to €30,000, with some hotels paying monthly and others paying on a seasonal basis."

The alleged fees were determined according to the number of tourists staying at each hotel. Special devices were reportedly installed to record significantly lower water consumption than was actually used. The difference was forcibly collected from those involved in the scheme.

Miroslav Iliev, Deputy District Prosecutor of Burgas:"If someone refused to pay, the technical device would be inspected, the manipulation would be discovered, and an inspection would follow. Official reports would then be drawn up, and the hotel would be required to pay the amount owed to the water utility within two weeks, otherwise its water supply would be disconnected."

The hotels involved were mainly located in Sunny Beach, Nessebar and Ravda, although investigators say they are gathering evidence concerning additional locations.