Fitch Downgrades Greece, Investors Nervous

Fitch rating agency has expectedly downgraded Greece's long-term ratings to its lowest rating above a default, the first of a serious of cuts the country can expect after the bond exchange plan to ease its massive debt. read

Embattled Sopharma Head Said to Eye Bulgaria's PM Office

The boss of pharmaceutical company Sopharma, an alleged monopolist on the Bulgarian market, is aspiring to become one day the country's prime minister, according to local journalists. read

Controversial ACTA Goes to European Court of Justice

The European Court of Justice, EU's highest court, has been asked to determine the validity of the controversial ACTA agreement, EU Trade Commissioner Karel de Gucht has announced. read

MORE TOP NEWS Dutch Govt Should Condemn Xenophobic Site - Council of Europe OMV, Exxon Stumble Upon Huge Gas Find in Romania Norwegian Tourists Complain of 'Too Many Bulgarians in Bulgaria' EC Gives Green Light to Bulgaria's Maritsa Hwy Bulgarian MPs Back Sacking of Notorious Health Fund Chief Bulgaria MPs Swallow the Bitter Pill of Frozen Pay Bulgarian Probe with Final Tally of 12 Unsafe Dams Bulgaria Worried, Says Romania Is Blocking Its Trucks Bulgarian-born Christo Postpones US Colorado River Project 1995 Cases Clog Sofia City Court

UPS & DOWNS Litex Motors & Great Wall Bulgaria's Irrigation Chief Sacked for Stealing USD 50 000

QUOTE OF THE DAY "I know that the Bulgarian people will be most happy if they witness the following scene, worthy of featuring in Federico Fellini's movie "Amarcord". The scene will be entitled "Bulgarian MPs going to work in the morning." It is 8:40 am. The temperature is 15 degrees below zero. The lawmakers are making their way to the National Assembly, barefoot, wearing a sack instead of suits, chains on necks. In their right hands they hold a whip and slash their backs to the joy of a handful of pretty journalists, dressed in short skirts. A white "Mercedes" stops nearby, the window is slightly opened and a blonde, probably in an effort to win God's mercy and be saved from the misery of a bursting low-quality silicone in her boobs, tosses a coin to the crowd of lawmakers and move on with her white "Mercedes." But who would vote for such miserable creatures?" Right-winger Assen Agov, fumes over the proposal, eventually approved, to extend the freeze on MPs salaries that expired at the beginning of 2012.

POLL How much of a chance does Bulgaria have to become a major European car manufacturer with the opening of Litex Motors and Great Wall factory in Lovech?  Bulgaria stands a great chance of becoming the primary European outsourcing destination for China's growing auto industry.  The Litex Motors & Great Wall factory in Bulgaria is a good start but Bulgaria is a long way from becoming a key player on the car manufacturing map.  The Great Wall car brand is yet to prove its competitiveness on the European market and it chances to make a breakthrough (including with the Bulgarian operations) are not very high. |  Results  Other: share in the forum

OPTIONS Print all stories Recommend to a friend News Archives Editorial Staff Contact us Advertise here Unsubscribe SOFIA MORNING NEWS is proudly distributed in the following hotels: Radisson Blu Grand Hotel Hilton Sofia Sheraton Sofia Hotel Balkan Grand Hotel Sofia Best Western City Hotel Arena di Serdica Boutique Hotel Holiday Inn Sofia

HOT PHOTO Notorious Bulgarian Lobbyist Gets Suspended Sentence Notorious court lobbyist Krasimir Georgiev, aka "Krasio the Black", who is known to have been "trading" Bulgarian magistrate positions, has gotten a suspended sentence on one of the charges against him. Photo by BGNES

NOVINITE INSIDER Pontius Pilate BG Style » More

RUSSIANS ALREADY BUILDING REACTOR VESSEL FOR BULGARIAâЂ™S BELENE NPP

Russia's Izhorskiye Zavody, part of OMZ Group, has launched check assemble of the reactor vessel VVER-1000 for the first energy unit at Bulgaria's Belene NPP, even though Bulgaria is yet to say officially whether it wants the power plant.

For the first two reactors of the second Bulgarian nuclear power plant Izhorskiye Zavody plans to produce 2 reactor vessels internals, 2 top blocks, 2 pressurizers, 8 blocks of steam generators with collectors of the coolant (steam generators, four corps had already been shipped to OJSC ZIO- Podolsk), 2 sets of units for the main circulation pipeline, as well as eight accumulator tanks of the core emergency cooling system and 16 tanks of passive protection of the reactor core, 4-traders has informed.

The check assembly of the reactor vessel internals and the cover of the upper unit is one of the final stages in the manufacturing process of the reactor vessel prior to delivery to the customer.

Bulgaria has been haggling with Russia's state corporation Rosatom and its subsidiary Atomstroyexport for the price of the 2000 MW Belene NPP – and for other issues – for years.

After it was first started in the 1980s, the construction of Bulgaria's second nuclear power plant at Belene on the Danube was stopped in the early 1990s over lack of money and environmental protests.

After selecting the Russian company Atomstroyexport, a subsidiary of Rosatom, to build a two 1000-MW reactors at Belene and signing a deal for the construction, allegedly for the price of EUR 3.997 B, with the Russians during Putin's visit to Sofia in January 2008, in September 2008, former Prime Minister Stanishev gave a formal restart of the building of Belene. At the end of 2008, German energy giant RWE was selected as a strategic foreign investor for the plant.

The Belene NPP was de facto frozen in the fall of 2009 when the previously selected strategic investor, the German company RWE, which was supposed to provide EUR 2 B in exchange for a 49% stake, pulled out.

BONUS SCANDAL EMERGES AT BULGARIAN AGRICULTURE BODIES

The Bulgarian State Fund Agriculture has distributed BGN 1 M in bonuses to employees while BGN 800В 000 have been given to those working for the Agriculture Ministry.

The news was reported Wednesday during a special press conference by the Member of the Parliament from the opposition, left-wing Bulgarian Socialist Party, BSP, and former Minister for the Management of the EU Funds, Meglena Plugchieva.

"This unacceptable cynics in times of economic crisis and the wide-spread poverty Bulgarians have been condemned to. In addition, all these generous bonuses come on the backdrop of the failures in the farming policies," Plugchieva said.

In the second week of February, the Bulgarian "Trud" daily reported that nearly BGN 1.2 M have been paid as bonuses at the Fund Agriculture – a body that deals with payments from EU funds to beneficiaries in the farming sector.

The CEO of the Fund, Rumen Porozhanov, who until March 2011 was Chief of Staff of Finance Minister, Simeon Djankov, said that "when there are good accomplishments, it would be normal to give cash bonuses," adding many of his staff work overtime on weekends when farmers usually apply for EU subsidies.

The latest revelations came on the heels of headline news about huge bonuses given to employees at a number of State institutions such as the Finance Ministry, the National Health Insurance Fund, NZOK, and the Registry Agency, prompting a wave if resignations and dismissals.

EC GIVES GREEN LIGHT TO BULGARIA'S MARITSA HWY

The EU Commissioner on Regional Policy, Johannes Hahn, signed Wednesday the EC approval of Bulgaria's application form for co-financing of the construction of the Maritsa highway.

The co-financing will be provided through the Cohesion Fund of the Operational Transport Program, the Bulgarian Regional Ministry's press office informs.

The total value of the highway's construction is close to EUR 204 M. 80% of them or about EUR 163 M will be assistance from the Cohesion Fund.

The tentative deadline is the end of 2013.

The road will be about 66-km-long, and is divided in two Lots.

Lot 1 - Orizovo-Dimitrovgrad is 31.4-km long. Lot 2 connects the towns of Dimitrovgrad and Harmanli in southern Bulgaria.

The Maritsa highway is part of the trans-European highway, connecting Central and Eastern Europe with the Middle East and Asia. It is scheduled to be completed by the Italian contractor Cooperativa Muratori & Cementisti, CMC, from Ravenna.

On August 2, Bulgaria's Prime Minister, Boyko Borisov, and then Minister of Regional Policy and Public Works, Rosen Plevneliev (current President of Bulgaria), broke the ground of Lot 1 of Maritsa highway.

BULGARIAN PROBE WITH FINAL TALLY OF 12 UNSAFE DAMS

Twelve from a total of 607 dams in Bulgaria are unsafe, according to the Minister of Economy and Energy, Traicho Traikov.

Traikov spoke for the media Wednesday, after the regularly scheduled meeting of the Council of Ministers.

The probe of the dams, which has now concluded, began after devastating floods in southeastern Bulgaria, which took ten victims. The cabinet decided then that Traikov and his institution would exercise control over dams regardless of their ownership.

Traikov further stressed Wednesday that all managers of water facilities in the country had been given strict safety directions such as at least 50% draining, cleaning of the overflowing equipment, cleaning and securing the bottoms, and unblocking devices that drain water. He pointed out the implementation of these measures will be subject to strong control.

According to the Minister, 70 from the 607 dams are managed by the State Agency "Irrigation Systems," and the rest – by local municipalities. A total of 30 teams took part of the checks. The initial number of dams had been listed at 562, but during the probe had grown to 607.

Damage from the flood in the southern Bulgarian village of Biser on February 6 is estimated at over BGN 3 M – 55 houses have been destroyed in Biser and the nearby village of Leshnikovo after the cracked wall of the Ivanovo dam broke and submerged adjacent areas.

The amount, however, does not include the damage to the infrastructure, such as the railroad, the roads and the bridges, which will make it many times higher.

The cabinet declared February 8 a national day of mourning for the victims.

Just one day earlier, the UN Office for Disaster Risk Reduction, UNISDR, warned that parts of Central and Eastern Europe, particularly Bulgaria and Serbia, are under the serious threat of destruction and casualties over forthcoming floods caused by mass snowmelt.

FITCH DOWNGRADES GREECE, INVESTORS NERVOUS

Fitch rating agency has expectedly downgraded Greece's long-term ratings to its lowest rating above a default, the first of a serious of cuts the country can expect after the bond exchange plan to ease its massive debt.

Fitch lowered Greece's credit grade by two levels to C from CCC, saying a default is "highly likely in the near term."

The news comes a day after Greece secured a second package of bailout loans from the so-called Troika – the IMF, European Commission and ECB – worth EUR 130 B.

The deal is not enough to save Greece from a default though, Fitch said Wednesday:

"The proposal to reduce Greece's public debt burden via a debt exchange with private creditors will, if completed, constitute a rating default, and result in the country's IDR being lowered to 'Restricted Default' ('RD') upon completion. The ratings of GGBs affected by the exchange, including those not tendered but restructured under CACs, which are expected to be imposed retrospectively on bonds issued under Greek law, will also be lowered to 'D' ('default') at this time."

Fitch says the exchange, if completed, would constitute a "distressed debt exchange".

Under the deal announced on Tuesday, banks and other investors in Greek government debt agreed to exchange their debt for new bonds that are worth much less and pay a modest rate of interest.

Including the reduced interest rate, the losses to the banking industry are more than 70%.

"We're treating Greece as a unique experience in a euro- zone context," said Fitch's Rawkins.

"We can highlight differences with other countries including that the programs are working in Ireland and Portugal and in Greece they weren't. Current account imbalances are coming down in Ireland and Portugal and in Greece they aren't."

The country's debt was forecast to balloon to almost double the size of its shrinking economy this year without the write- off, the European Commission said in November.

All three big ratings agencies -- Fitch, Moody's and Standard & Poor's -- downgraded Greece in July when an initial debt swap plan was unveiled and have warned that losses for private creditors would trigger a temporary default.

SPAIN FACES HIGH BUDGET DEFICIT, PLEADS FOR EU MERCY

Spain plans to ask the European Union to allow its 2012 budget deficit to exceed 5% of gross domestic product, well above the limit of 3% of the GDP permitted by EU rules, the online edition of El Pais reported.

Spanish Prime Minister Mariano Rajoy and Finance Minister Luis de Guindos will approach Brussels with that request in ten days, the report said, citing sources close to the government.

Spain fears that its economy cannot handle lowering the debt-to-GDP from 8% in 2011 to 4.4% for 2012, which would entail a bigger drop in growth and an increase in the jobless rate.

A spokesperson for Spain's economy ministry said the country's commitment to budget austerity is "absolute" and the government is determined to put in bigger efforts to lower the deficit than last year.

The European Commission will release its latest 2012 and 2013 forecasts for the 27-nation bloc on Thursday.

The European Union is likely to give countries such as Spain softer and much more realistic deficit targets, according to reports.

CROATIA, CYPRUS UP VAT TO COMBAT CRISIS

Croatia and Cyprus are about to increase their value added tax as the beginning of next month in a bid to cope with the crisis and rake in more revenues in the budget.

The planned value added tax hike in Croatia will push it from 23 to 25% and make it one of the countries in Europe with the highest VAT rate, alongside Denmark, Sweden and Norway.

In Croatia, VAT was imposed on 1 January 1998 at the rate of 22%. It was increased by one per cent on 1 August 2009.

In Cyprus the value-added-tax will increase from 15% to 17% on March 1. Thus, the government hopes to reduce the projected budget deficit to 2.4% of gross domestic product (GDP) in 2012 from 6% last year.

The European Commission warned Cyprus that it faces the threat of financial penalties if it does not reduce the deficit to below 3% of GDP.

Hungary has the highest VAT rate in Europe at 27%. The lowest VAT rate in the European Union - 15% - is in force in Luxembourg.

After a series of U-turns Bulgaria's government decided at the end of May 2010 to scrap plans for an increase of the 20% value added tax in a bid to plug a budget gap that has thwarted the new EU member's efforts to join the euro in the near future.

The VAT increase has been a thorny issue in Bulgaria for months on end with the cabinet changing their mind numerous times and several versions tossed around, ranging from 22% to 24%.

The VAT hike was proposed as part of a package of new austerity measures, which also include the introduction of a luxury tax, floating minority stakes in state-owned companies and a possible bond issue.

Politicians, analysts and trade unions took a firm stand against the hike, citing a long line of negative repercussions – an increase in the inflation rate, an expansion of the grey sector, a slow-down in the economic growth, in short a boost for the impact of the crisis.

Representatives from all business sectors cautioned that the hike in the value-added tax in Bulgaria should be a last-ditch measure, introduced only together with an overhaul in government expenditure and structural reforms.

OMV, EXXON STUMBLE UPON HUGE GAS FIND IN ROMANIA

ExxonMobil Exploration and Production Romania Ltd. and OMV Petrom SA have made a potentially significant gas discovery in the Black Sea, offshore of Romania.

"The exploration well encountered 70.7 meters of net gas pay, resulting in a preliminary estimate for the accumulation ranging from 1.5 to 3 trillion cubic feet (42 to 84 billion cubic meters)," OMV said in a statement on Wednesday, as cited by Bloomberg.

"This may be the biggest find in OMV's history," Chief Executive Officer Gerhard Roiss told reporters in Vienna.

The Domino-1 well, which is operated by the Exxon unit, is located in the Neptun Block, 170 kilometers offshore in water about 1,000 meters deep.

Drilling operations started at В the end of 2011 and the total depth of the well is expected to be more than 3,000 meters below sea level. OMV Petrom (SNP) and Exxon each hold 50 percent in the well.

It is too early in the data evaluation and exploration process to determine whether the Neptun block will ultimately prove to be commercially developable or not. The potential for first production is towards the end of the decade at the earliest, according to OMV.

NORWEGIAN TOURISTS COMPLAIN OF 'TOO MANY BULGARIANS IN BULGARIA'

A Norwegian family on vacation to Bulgaria has complained that too many Bulgarians and other Eastern Europeans are staying in their hotel.

The peculiar complaint has been filed by a family that wanted to spend its holiday with other Scandinavians and contended that tour operator Apollo should have informed them that most of the guests at the Bulgarian hotel were either Bulgarian or from other Eastern European countries.

"We never would have chosen this hotel if we had known that beforehand," the family wrote, arguing that their 12-year-old daughter had no one to play with, according to newsinenglish.no.

The Sveti Toma hotel offers an advertisement for a club for children, games and entertaining. It is true that these things are offered, but not in international languages like for example English or German, the family has pointed out, as cited by the Norwegian Aftenposten daily.

Apollo's information chief, Helen Begby, said their Norwegian customers must inform them if they only want to travel to places where there are a lot of other Norwegians or Scandinavians. She noted that it would border on racism if Apollo were to monitor the nationalities of all guests staying at hotels they use in their tour packages.

BULGARIA WORRIED, SAYS ROMANIA IS BLOCKING ITS TRUCKS

Bulgaria's Foreign Ministry has expressed its concern with the difficulties Bulgarian trucks have been experiencing in Romania that have led to queues of vehicles at the two countries' border cross points with each other.

The Bulgarian Foreign Ministry has demanded that Romanian authorities explain the situation.

"Bulgaria cannot accept actions that hamper the free movement of people, goods and vehicles – a fundamental principle of the European Union", the Foreign Ministry has declared in a statement.

An 8-kilometer long line of freight trucks had formed Wednesday morning on the Danube Bridge connecting Bulgaria and Romania.

DUTCH GOVT SHOULD CONDEMN XENOPHOBIC SITE - COUNCIL OF EUROPE

The Council of Europe has demanded that the Dutch government distance itself from the notorious anti-immigration website created by the far-right PVV party of Geert Wilders.

The website is widely regarded as xenophobic because it solicits and disseminates negative reports about citizens of central and eastern European countries working in the Netherlands, the Council of Europe believes.

"I am concerned because (the Internet site) is hosted by a political party which is linked to the governing coalition," Secretary General Thorbjorn Jagland pointed out in a letter addressed to Dutch Foreign Minister Uri Rosenthal.

Dutch Prime Minister Mark Rutte has declined to comment about the site, saying it is a party rather than a government matter.

The site, titled "Complaints about Central and Eastern Europeans," boasts slogans such as "Do you have problems with people from Central and Eastern Europe?" and "Have you lost your job because of a Pole, a Bulgarian, a Romanian? We want to know." It also displays media headlines reporting how Eastern Europeans commit more and more crime.

The PVV party's website has drawn wide criticism from Central and Eastern Europeans, including Bulgaria's Foreign Ministry and the country's MEPs. European Commissioner for Justice, Fundamental Rights and Citizenship Viviane Reding described the website as a call for intolerance.

CONTROVERSIAL ACTA GOES TO EUROPEAN COURT OF JUSTICE

The European Court of Justice, EU's highest court, has been asked to determine the validity of the controversial ACTA agreement, EU Trade Commissioner Karel de Gucht has announced.

De Gucht revealed that the ratification process for the treaty will now be suspended until the court has given its advise.

The European Commissioner claimed he shared people's concern over the freedom of Internet.

"So I believe that putting ACTA before the European Court of Justice is a needed step. This debate must be based upon facts and not upon the misinformation or rumour that has dominated social media sites and blogs in recent weeks," he said in a statement.

"ACTA will change nothing about how we use the internet and social websites today," de Gucht stated, explaining that it does not introduce any new rules but only helps to enforce what is already law today.

Bulgaria's cabinet halted the country's ratification of ACTA on February 15 after massive protests that took place in the country. However, the Balkan country is yet to withdraw its signature from the agreement.

Ever since the signing, ACTA stirred much discontent in Bulgaria, both because it had not been discussed by the cabinet and because the public had been kept entirely in the dark about the decision to sign it, until prominent Bulgarian bloggers and lawyers stirred large-scale noise about it. They lashed out at the signing of ACTA over their belief the agreement will bind countries to install legal regulations that excessively and unduly broadly penalize Internet users.

MANY OF BULGARIA'S CHILDREN IN INSTITUTIONS LIVE IN SUBSTANDARD CONDITIONS - CE COMMISSIONER

Thomas Hammarberg, Council of Europe Commissioner for Human Rights, has warned that the conditions of children living in institutions and the protection of minorities continue to be a cause for concern in Bulgaria.

In a media statement published Wednesday, he acknowledges the progress achieved so far, but draws attention to the fact that the situation of children living in some institutions remains seriously substandard.

"There have been allegations of cases in which children with disabilities were subjected to practices of malnourishment, violence, physical restraint and incapacitating drugs in the institutions where they lived. Medical assistance and basic needs were sometimes denied or provided too late, " Hammarberg cautions.

He recommends that the government focus on the plans to phase out the system of institutional care of children as a matter of priority.

The CE Human Rights Commissioner is hopeful that the new law on education will guarantee access to quality education also to children with intellectual disabilities.

He argues that the ongoing discussions on a draft Child Protection Act are an opportunity to ensure a rights-based policy for the protection of all children in the country.

Hammarberg goes on to say that the Roma population in Bulgaria remains socially excluded and marginalized with restricted access to adequate housing, education and medical service.

"The new 2012-2020 National Strategy for Roma Integration should be given full implementation, including by achieving short-term goals, such as the improvement of housing and health conditions of many Roma living in settlements without a regular water supply, electricity, gas and heating," the CE Human Rights Commissioner notes.

He explains that the fact that many Roma families continue to live in substandard conditions or are homeless is due to forced evictions, which he says should be avoided whenever possible.

"When this is not possible, international standards require the provision of adequate alternative accommodation, legal remedies, compensation and protection from homelessness," he adds.

Commissioner Hammarberg also calls for effective investigations of cases of racist attacks against members of Roma communities and of complaints of police brutality.

In conclusion, he welcomes the declaration adopted by the Bulgarian Parliament on 11 January 2012 condemning the assimilation process against the Muslim minority.

Hammarberg recommends that a just solution for the victims of forced assimilation be found, "including on the issue of the pension rights of those ethnic Turks who had to leave for Turkey and whose premiums paid and time spent in Bulgaria are still not being accounted for".

ACTA NOW SUSPENDED IN AUSTRIA, TOO

Austria has halted its ratification of the controversial ACTA agreement until the European parliament has ruled on it, the country's Interior Ministry has announced.

Earlier on Wednesday, European Trade Commissioner Karel de Gucht announced that the European Court of Justice, EU's highest court, has been asked to determine the validity of the agreement.

Austrian Interior Minister Johanna Mikl-Leitner also welcomed the commission's decision, her spokesman said.

Bulgaria, the Czech Republic, Germany, Latvia, Lithuania, Poland and Romania have also said they would not ratify ACTA.

ACTA, abbreviation for Anti-Counterfeiting Trade Agreement, mandates that signatory countries implement legislation to criminalize certain types of downloading content such as music and movies, from sites not sanctioned by rights owners, such as torrent trackers.

According to the agreement, such actions will be classified as similar to counterfeiting, and will carry heavier sanctions, including confiscation.

The treaty also will require Internet providers to provide information about the traffic of their users.

A total of 22 EU member states and 10 other countries, including the US, Japan, Canada, Australia and South Korea signed the agreement in Tokyo at the end of January.

EMBATTLED SOPHARMA HEAD SAID TO EYE BULGARIA'S PM OFFICE

The boss of pharmaceutical company Sopharma, an alleged monopolist on the Bulgarian market, is aspiring to become one day the country's prime minister, according to local journalists.

"You should be careful what you say [about us] because very soon you will be living in a country, whose prime minister's name is Ognyan Donev," Nikolay Barekov said on Wednesday in his broadcast on TV channel 7, retelling a conversation he had with Donev's partner Lyubomir Pavlov.

Two days earlier Bulgaria's parliamentary health commission said it is about to launch a probe into local pharmaceutical company Sopharma over suspicions of monopoly.

The move came following an investigation by TV 7 channel, which showed that Sopharma sells its medicines to Bulgarian patients and hospitals at higher prices than in Turkey or Serbia.

A package of ampoules for severe allergy, for example, costs about BGN 70 in Bulgaria, while its price in Turkey is just BGN 25. A medicine for high blood pressure is sold at BGN 7 in Serbia, while in Bulgaria the price is three times higher.

The investigation also showed that the pharmaceutical boss, who recently turned into a media mogul too, will lose about half a billion levs if health authorities decide to put their house in order.

"I am very surprised by the big difference in prices," Desislava Atanasova, head of the parliamentary health commission, commented.

Earlier this month it emerged that the European Commission is about to launch an investigation into Bulgaria's pharmaceutical company Sopharma over suspicions of monopoly as unethical as in an African country.

Sopharma, controlled by Ognyan Donev, who until a year ago was a member of the supervisory board of the State Authority National Health Insurance Fund, has managed to supply more than 70% of the medicines required by (state) hospitals and more than 50% of prescribed medicines, according to media reports.

The other key person in the scheme is believed to be the recently fired deputy health minister of Bulgaria, Gergana Pavlova, a former high-ranking employee of Sopharma.

According to a New Europe publication the European Commission is already in Bulgaria, investigating the case 'sur place'.

Ognyan Donev and Lyubomir Pavlov became partners and media moguls in April last year after acquiring WAZ Mediengruppe assets amid accusations of an attempted corporate mini-coup.

The transaction included Trud and 24 Hours daily newspapers, 168 Hours weekly newspaper, Trud weekly, a few magazines, eight regional newspapers, a printing house, distribution company Strela and ZGB's headquarters in downtown Sofia and across the country.

BULGARIAN MPS BACK SACKING OF NOTORIOUS HEALTH FUND CHIEF

The Members of the Bulgarian Parliament accepted Wednesday the resignation of the discredited Bulgarian National Health Insurance Fund (NZOK) Director, Neli Nesheva.

The decision followed a 2-hour-long debate.

127 MPs voted – of them 116 for, 3 against and 8 abstained.

One day earlier, the ruling, center-right Citizens for European Development of Bulgaria party, GERB, approved the resignation as well.

The opposition in the Parliament backed Nesheva while the ruling majority praised her professionalism, but reminded the resignation is a must over the wide-spread public opinion.

The MPs must choose a new NZOK head within a month-long deadline.

The "Nesheva" scandal flared after Members of the Parliament from the right-wing Blue Coalition released for the media documents showing that all while NZOK is in shambles, its employees have received in 2011 over BGN 2 M in bonuses, of which BGN 30В 000 went to its Head.

Nesheva, who admitted to receiving over BGN 12 000 of bonuses last year and - though claiming the money was well deserved - quit office on Friday under public, opposition, and Prime Minister, Boyko Borisov's pressure.

In the last few days, the Bulgarian Doctors Union, the Bulgarian Industrial Chamber, the Union of Multi-profile Hospitals, the National Association of Private Hospitals and the National Alliance of People with Rare Diseases, and the Parliamentary Committee on Health have declared their backing for her, and insisted that changes in NZOK leadership will unnecessarily shake the system.

They praise the NZOK Director for reinstating regular payments in the system, for the new medication policy which includes the possibility to negotiate discounts and the new methodology of payments to hospitals, which have increased transparency and reduced the lobbyist pressure.

Her supporters say the scandal was stirred on purpose by the pharmaceutical cartels in Bulgaria.

BULGARIA MPS SWALLOW THE BITTER PILL OF FROZEN PAY

Bulgaria's members of parliament have agreed, though reluctantly, to extend the freeze on their salaries that expired at the beginning of 2012.

The motion, tabled by the ruling GERB party, was approved by 133 MPs, three voted against and one abstained.

It did not pass without a bit of drama, however.

"I know the people will be happy if the members of their parliament go to work bare-footed and with chains around В their necks," Assen Agov, a right-wing MP, fumed from the rostrum.

In 2011 Bulgarian MPs had their salaries frozen, even though per statute theyВ equals three times the average monthly salary in the country's public sector for the last month of the latest quarter.

MPs had nonetheless decided that in view of economic and financial hardships experienced by Bulgaria, they will freeze their salaries to 2009 levels.

The moratorium however had expired at the beginning of 2012, raising fears that MP salaries might be automatically indexed again.

The average salary in December 2011 was BGN 853, according to latest data of the statistics office.

That means that MPs, whose fixed salaries range between BGN 2В 196 and BGN 2В 259, would add an extra BGN 360 each month, regardless of the numerous bonuses they get.

Internet formus and media were indignant at what they saw as a stealthy self-serving move on the part of local MPs, who are famous for non-attending parliamentary sessions.

For almost a decade already the black list has been topped by the leader of the ethnic Movement for Rights and Freedoms Ahmed Dogan, who attended no more than ten parliamentary sessions over a period of four years.

The current parliament, which held its first session at the beginning of July 2009 with the center-right GERB party making up 116 MPs in the 240-seat unicameral national assembly, vowed to put an end to the vicious job-skipping practice, but to no avail.

Members of Bulgarian parliament have always had the habit of going after their private business instead of working in the plenary hall and obviously have no intention to shake it off.

NO BONUSES IN MY MINISTRY, BULGARIAN TOP COP SAYS

No bonuses have been distributed among the employees of Bulgaria's Interior Ministry, according to the country's Interior Minister Tsvetan Tsvetanov.

Tsvetanov clarified that awards have been received by Interior Ministry employees from the Ministry's award fund, as well as financial aid for those with health problems.

Some BGN 20В 000 has been distributed as award money after special operations tackling organized crime, according to the Interior Minister. Another BGN 20В 000 has been spent on a police officer's medical treatment.

Bulgaria's government has been recently rattled by bonus scandals.

National Health Insurance Head Neli Nesheva was pressured to resign after it turned out that she awarded herself with hefty bonuses worth BGN 20В 000.

Violeta Nikolova, Executive Director of Bulgaria's Registry Agency, was removed from her post after it was revealed that she had received BGN 72В 000 in additional financial incentives, BGN 24В 000 of which had been ordered by former Justice Minister Margarita Popova.

BULGARIAN LEFT: MINISTERS' HEADS MUST ROLL OVER RESHUFFLES

Bulgaria's left-wing Coalition for Bulgaria demands the resignations of Health Minister, Stefan Konstantinov, and of Agriculture Minister, Miroslav Naydenov over the "staff policy failure of the ruling GERB."

The position of Coalition for Bulgaria was read by the Member of the Parliament of the Bulgarian Socialist Party, BSP, and Deputy Chairman of the Socialists Parliamentary Group, Angel Naydenov.

The declaration came on the heels of the resignation of the Head of the National Health Insurance Fund, NZOK, Neli Nesheva, and the dismissals of the Deputy Health Minister, Gergana Pavlova, the Director of the Registry Agency, Violeta Nikolova and the Director of Irrigation Systems, Georgi Harizanov.

Naydenov stated that the resignations and dismissals were just the first, small step in the right direction, and ministerial ones must follow.

The left wing further demands full and transparent probes of the institutions, whose managers were sacked.

"How can we believe that Naydenov, who is Harizanov's direct supervisor, was not aware of his criminal past; that the Health Minister learned from a letter of the European Commission that prices of medications in Bulgaria are extremely steep; that the Registry Agency Head gave herself and on her own colossal bonuses without the ex and the current Justice Ministers knowing anything about them?" Naydenov stressed in plenary hall, adding the staff quality of the center-right Citizens for European Development of Bulgaria party, GERB, was "striking."

On Tuesday, Bulgaria's right-wing Union of Democratic Forces, UDF, also demanded the resignation of Health Minister, Stefan Konstantinov, over the scandalous bonuses within the system of his institution.

DEPUTY TAKES OVER BULGARIA'S CHILD PROTECTION AGENCY

Bulgaria's government has accepted the resignation of the head of the Child Protection Agency and appointed her deputy to take over the post.

Kalin Kamenov will replace Nadya Shabani, who quit office, citing personal reasons.

According to local media reports Shabani had informed the Minister of Labour and Social Policy Totyu Mladenov about her decision as early as last year and took the step after ironing out the amendments to the Law on Child Protection.

"I want to thank my colleagues for their understanding. I shall continue to help the social ministry in one way or another," she said.

She denied reports that she may join the team of newly elected President Rosen Plevneliev as a social affairs adviser.

Shabani entered the news in Bulgaria and abroad when an unusual investigation, bringing together prosecutors and human rights lawyers, revealed a grisly picture of neglect at Bulgarian state homes for mentally disabled children: 238 deaths since 2000.

She rejected the findings and said society also bore responsibility for rejecting people with mental disabilities.

"For 50 years, these children have been intentionally hidden from us," she said. "We have to change our attitudes as well," referring to the Communist-era practice to build homes for the mentally ill deep in the countryside to keep them far from public view.

Shabani was part of the team behind a proposal for closing all orphanages and institutes for abandoned children with physical and mental disabilities within 15 years.

BULGARIAN FINANCE MINISTER SPEAKS UP FOR DISCREDITED HEALTHCARE OFFICIALS

Finance Minister Simeon Djankov has defended the scandal embroiled Director of the National Health Insurance Fund (NHIF) and the Deputy Health Minister by saying that both had been good at their jobs but had fallen prey to political populism.

In an interview for Wednesday's morning broadcast of the Bulgarian National Television (BNT), Djankov noted that the turmoil had been stirred by political speculations and a war between media groups.

He defended Deputy Health Minister Gergana Pavlova, who was dismissed on Tuesday, by pointing out that she had achieved a lot while in office.

Djankov noted that Pavlova's efforts had resulted in a wider access to drugs reimbursed by the NHIF and an improved distribution of pharmaceuticals among hospital which had previously been in the habit of overstocking.

The Finance Minister assured that Pavlova had never worked for local drug maker Sopharma and had not lobbied for the company's interests.

Commenting on the investigation launched by the European Commission into the local pharmaceutical market on suspicions of unauthorized state aid, Djankov asserted that Bulgaria was not facing sanctions.

The Finance Minister explained that the state had never subsidized Sopharma and the procedures in question had been carried out through public procurement.

He went on to side with the proposal of Health Minister Stefan Konstantinov for a drug pricing audit to dispell allegations of irregularities on the local market.

Regarding the bonus scandal which triggered the resignation of NHIF Director Neli Nesheva, he specified that she had had the right to award bonuses of up to 25% of the institution's revenues.

Djankov emphasized, however, that the financial incentives had to be distributed in a transparent and just manner.

The Deputy Prime Minister stressed that the bonus payments were a good instrument for stimulating public officials with key responsibilities.

He concluded by urging a fast-track adoption of the Civil Servant Act, which he said had been submitted to Parliament back in November 2011 and was expected to make payments in the state administration transparent.

EX BULGARIAN IRRIGATION HEAD: LEGAL TROUBLES ARE YOUTH'S FAULT

I never falsified my criminal record; it is real, claims the former Chairman of the Board of Directors of "Irrigation Systems" Georgi Harizanov.

Harizanov spoke Wednesday in an interview for the largest, private Bulgarian TV channel bTV.

Georgi Harizanov was removed from the post of Chairman of the Board of Directors of Irrigation Systems late on Monday after reports by Trud daily that he was standing trial for issuing a death threat in 2008 and was also being investigated for embezzling USD 50 000 from a Sofia-based company back in 2001.

It also emerged that upon being hired at "Irrigation Systems," Harizanov presented a clean criminal record.

Last night, Agriculture Minister Miroslav Naydenov sent to the prosecution for verification Harizanov's criminal record, called in Bulgaria "certificate for conviction."

The former Chairman told the bTV hosts that he had not informed Naydenov of the charges filed in January for theft of USD 50В 000, occuring over 10 years ago, on the advice of his lawyer.

According to the attorney, the charges were absurd and would be dismissed quickly.

Harizanov stressed that his fingerprints in this case were taken in 2001 and he did not understand why the theft indictment was renewed precisely at this moment, voicing conviction that "someone cooked something against him at the Prosecutor's Office."

Regarding his suspended sentence for blackmail, dating from 2005, the ex-Chairman explained the incident occurred when he had been 19-years-old and his car was hit from behind at a traffic light. He asked the other driver to sign a note he would pay for the damages since the latter did not have insurance.

The driver later filed a blackmail claim with the Court, but at the end, the two became friends and today remember the story with some "particular feelings."

Harizanov firmly denied ever making a death threat and pointed out the civil claim had been withdrawn, all while the State had reinstated the case.

He told the following story:

In 2007, he met claimant Denitsa Tsitselkova online, in the midst of organizing a protest against taxes for motorcycles. Tsitselkova had non-stop provoked the organizers and after they looked to find out who she was, some "interesting pictures of her" emerged.

The woman then filed a complaint against Harizanov and several other people that they published the said pictures on the protest's site.

"She posted the pictures herself; this is how she makes her living. In Court she insisted that I have inflicted enormous stress on her and wanted BGN 7В 000 in damages. I told the judge that she represents the oldest profession and I do not want to enter in any bargaining with her, but later apologized for any offense that she felt over my words," said Harizanov, pointing out that "everyone makes mistakes in their youth," in an attempt to explain his legal troubles.

The former Irrigation Systems Chairman further clarified that he had been working from the time he turned 19 and did not have time to complete his college degree, but nevertheless, since he was 23, he had been in charge of important tasks.

On Friday, it emerged that Georgi Harizanov had not completed his university studies, which prompted Naydenov to compare him to Microsoft co-founder Bill Gates.

The Irrigation Systems company gained media prominence due to the debates surrounding the ownership of dams in Bulgaria.

The issue surfaced after a dam wall collapsed on February 6, causing a deadly flood in the southern Bulgarian village of Biser.

BULGARIANS WARNED OF 'DEADLY' ICICLES

The Sofia City Hall reminded Wednesday that cleaning of snow and icicles from buildings is the duty of their owners and warned of steep fines for those who fail to do so.

The fines range between BGN 700 to BGN 2В 000 and injured persons can take the owners to Court after being given a certificate from a medical professional.

The City Hall had issued 40 citations for non-removed icicles and snow, while there are over 4В 000 fines amounting to up to BGN 50.

Meanwhile, it was reported that 3 people had been injured so far this winter in Sofia and one in the Rhodoppe's city of Smolyan.

The 38-year-old man, who was injured by a fallen icicle in downtown Sofia, is still in coma and in critical condition. He is identified as Georgi, a resident of the Black Sea city of Varna.

Two other people barely escaped more serious injuries in the capital.

Nadezhda Tabakova, 74, had been injured in the Sofia "Slatina" district and her condition is reported as serious – with several stitches and head wounds.

Stefan Stefanov is the other lucky one – he has just bruises from a block of ice that fell on him, again in downtown Sofia, from the very building that houses the Presidential Office. He was walking with his son on the sidewalk along the building when they were "buried" under huge pieces of snow and ice, bringing Stefanov to the ground.

In Smolyan, a 60-year-old woman suffered a broken collarbone in a similar incident in the city's center and is in a state of shock.

TRUCKS CONGEST DANUBE BRIDGE ON BULGARIAN-ROMANIAN BORDER

An 8-kilometer long line of freight trucks had formed Wednesday morning on the Danube Bridge connecting Bulgaria and Romania.

The news was reported by the Bulgarian Main Directorate Border Police, saying the reason is the slow processing of all vehicles from the Romanian border authorities.

All other cross-border points with Romania – the land ones of Kardam and Durankulak, and the river ones – Vidin, Svishtov, and Oryahovo, are open and function normally.

BULGARIAN-BORN CHRISTO POSTPONES US COLORADO RIVER PROJECT

Famous Bulgarian-born artist Chirsto (Hristo Yavashev) announces that he is postponing for the summer of 2015 his Colorado "Over the River" project.

The project includes draping fabric canopies along a stretch of the Arkansas River in Colorado and will now start in August 2015, instead of the initially scheduled August, 2014.

The delay will give more time to the public to find out how issues with safety and traffic will be resolved, the announcement reads.

Christo and his late wife Jeanne-Claude's vision for Over The River was conceived in 1992.

Once completed, the Over the River installation could be seen in the course of two weeks – a 68-km long segment of the river between Cañon City and Salida in southern Colorado will be draped with silvery translucent fabric panels, each 10-km long. The stream of successive fabric panels will be interrupted by bridges, rocks, trees and bushes, and for esthetic and technical considerations. Steel wire cables, anchored on the upper part of the riverbanks, will cross the river and serve as attachment for the fabric panels, which will follow the configuration and width of the changing course of the river 2.4 to 7.6 meters above the water.

At the beginning of February, a lawsuit was filed by group of environmentalists, outdoor enthusiasts and wildlife advocates demanding to block Christo's project in Colorado.

According to the group, the US Bureau of Land Management in Denver has violated federal legislation and its own policies by approving the project.

The project will cost USD 50 M and is expected to draw 400,000 visitors, and is fully financed by the Bulgarian-born artist, but Rags Over the Arkansas River Inc. fear that it will get in the way of natural beauty.

Similar past works of Christo and Jeanne-Claude include the wrapping of the Reichstag in Berlin and the Pont-Neuf bridge in Paris, the 24-mile-long artwork called Running Fence in Sonoma and Marin counties in California, and The Gates in New York City's Central Park.

Their projects have been opposed before – The Gates in the NYC Central Park was only permitted in 2005 by the administration of Mayor Michael Bloomberg, even though it was first proposed by the artists in 1979.

BULGARIA'S HEALTH INSURANCE FUND CHIEF SAYS BONUS WAS LEGITIMATE

Neli Nesheva, the Director of the National Health Insurance Fund (NHIF), has termed the decision to file her resignation as an act of political responsibility aimed at reducing social tension created recently on the issue of additional financial incentives at the institution

On Tuesday the parliamentary group of center-right ruling party GERB accepted Nesheva's resignation by a unanimous vote and the motion will be put to the vote in Parliament on Wenesday.

Last week it was revealed that the NHIF Director had received a bonus of over BGN 12В 000 for a period of 15 months.

In a bid to alleviate social tensions, Nesheva vowed to donate the scandalous bonus payment to a charity foundation, which she did on Tuesday.

In a Wednesday interview, the embattled official reiterated that the money for additional financial incentives came from NHIF's control activities and the allocations were legal.

"The money was distributed in accordance the law," Nesheva added, offering yet another apology to those who found her behavior offensive.

"On Tuesday, the parliamentary group of GERB brought up the issue of the bonuses at the Health Ministry," Nesheva went on to say.

"So far nobody knows how exactly the sum of BGN 5 M got distributed. More importantly, the fate of a BGN 340 M transfer from NHIF to the Health Ministry also remains unknown, despite two calls by NHIF's Supervisory Board for account information. No response has arrived yet," she explained.

Nesheva was adamant that there had been no conflict between her and the Deputy Health Minister Gergana Pavlova.

Pavlova was removed from her post on Tuesday over controversies surrounding drug pricing policies in Bulgaria.

BULGARIAN HEALTH MINISTER TO DEMAND DRUG PRICING AUDIT

Health Minister Stefan Konstantinov is expected to demand an audit of prices of pharmaceuticals in Bulgaria on Wednesday.

Konstantinov told journalists on Tuesday that the check had to be conducted by outside-Ministry experts so as to prevent doubts regarding its impartiality.

The announcement of the Health Minister came on the heels of the dismissal of Deputy Health Minister Gergana Pavlova on the grounds that she had failed to explain the pharmaceutical pricing policy.

"There has been much talk about medicine costs in Bulgaria and the decision of the Prime Minister for the dismissal was most probably triggered by the desire to ensure maximum transparency and to eliminate any doubts. I side with the opinion that the Health Ministry must be beyond criticism," Konstantinov said in his Tuesday interview.

He went on to stress that the best decision to curb monopoly suspicions on he pharmaceutical market was to remove a Deputy Minister.

The scandal erupted on Monday after a spate of media publications claiming that prices of medicines produced by local drug maker Sopharma were higher in Bulgaria than in Serbia and Turkey.

Sopharma is reportedly being invested by the European Commission for monopoly behavior.

STRANDZHA BOXING TOURNAMENT KICKS OFF IN BULGARIA

One hundred sixty-four competitors from thirty countries will take part in the Bulgarian edition of the Strandzha Tournament, which starts on Wednesday.

Boxing starts on Wednesday and the finals will take place on Saturday.

This is the first time that the tournament will be held in the Bulgaria's capital Sofia after a fourteen-year absence.

The Cuban boxing team, who will participate in the Strandzha Tournament in Bulgaria later this month, have set themselves the highest possible goal – to take home the gold medals.

The Bulgarian event will be the competitive debut of the islanders for this Olympic year.

The team is headed by world champion boxers Baku Lazaro Alvarez (56 kg) and Julio Cesar Cruz (81), who have already qualified for the 2012 London games.

Olympic hopeful Natasha Jonas is part of a Great Britain team boxing in Bulgaria this week.

Selected as GB's lightweight representative, Jonas looks to bolster her 2012 chances by picking up a medal at the Strandja Tournament.

After suffering defeat in Sweden earlier this year, the Rotunda female knows a good showing in Bulgaria is vital ahead of selection for the Olympic qualification tournament in May.

NOTORIOUS BULGARIAN LOBBYIST GETS SUSPENDED SENTENCE

Notorious Bulgarian businessman and alleged court lobbyist Krasimir Georgiev, aka Krasio the Black, was punished by a 2-year suspended sentence.

A panel from the Sofia District Court found Georgiev guilty of perjury in lying that he had not known any magistrates, despite collected evidence to the opposite.

The prosecution commented they were satisfied with the rule even though they had asked for a 2.5-year effective sentence. The Prosecutor told the media that she was still in the process of deciding if she should file an appeal while Krasio was adamant he was taking the case to the Appeals Court.

He explained that he never said he did not known any judges or prosecutors, but only that he never discussed appointments in the judicial system with them. Phone call logs and invoices are considered proof for his "judicial" connections.

In addition to perjury, Georgiev was also charged in February 2011 with tax evasion in the amount of BGN 95 000. The other case against him – for trading influence has been dismissed while the prosecutor's office explained it has been changed to charges of tax crimes.

The Krasio scandal started on June 18, 2009, when a member of the Bulgarian Supreme Judicial Council, Ivan Kolev, revealed information that "some guy called Krasio from Pleven" promised appointments to magistrate positions in exchange for EUR 200 000. Krasio was said to be able to "guarantee" the support of 8-13 members of a total of 27 members of the Council.

Several judges and magistrates, including Supreme ones, have been dismissed or resigned in the aftermath over proven contacts with Georgiev.

BULGARIAN MASTERMIND OF ATM SCAMS SENTENCED TO 41 MONTHS IN US PRISON

Dimitar Dimitrov, a 59-year-old Bulgarian citizen residing in the United States, has been sentenced to 41 months of imprisonment for ATM scams.

According to the indictment, he was the leader of a crime group which used hi-tech methods to to steal hundreds of thousands of dollars from bank ATMs in Las Vegas, New York, Miami, San Francisco and Seattle, the Bulgarian Telegraph Agency (BTA) reported, citing the Las Vegas Review-Journal.

Charges were pressed against nine other defendants besides Dimitrov.

Four remain at large in Bulgaria, but four of the five arrested have pleaded guilty.

Dimitrov has been behind bars since May 2010 and will get credit for the time spent in custody.

After his release, Dimitrov will serve three years of supervised release, pay USD 96В 461 in restitution and stay away from the other members of the crime group.

Federal prosecutors described Dimitrov as the greedy, calculating boss of a Bulgarian organized crime ring that oversaw bank ATM skimming crews from coast to coast, including Las Vegas.

Dimitrov's defense lawyers argued that he was not the mastermind of the crime group and that he was a troubled personality battling alcohol problems and bipolar disorder.

Before the pronouncement of the verdict, Dimitrov insisted that he was not the leader of the crime ring.

"I never organized nobody. I just drank too much and talked too much." Dimitrov said, as cited by the US daily.

Senior US District Judge Philip Pro, however, said that there was clear evidence that Dimitrov was "the guy" who kept in touch with the crime ring's overseer in Bulgaria.

The accusations were backed by court-approved FBI wiretaps of calls between Dimitrov and his Bulgarian-based ally, Nencho Mihalev.

"Dimitrov stated that he had racketeered prostitutes, embezzled from truck drivers from foreign countries and bribed policemen, customs officers and Bulgarian state security agents," Assistant U.S. Attorney Eric Johnson stated.

The wiretaps also revealed Dimitrov as prone to making violence threats.

The ATM fraud scheme involved stealing bank account and personal identification numbers through a hidden camera.

The data was then used to make counterfeit debit cards and withdraw money from ATMs.

1995 CASES CLOG SOFIA CITY COURT

Cases filed in 2004-2006 for crimes committed in 1995-1997 are still dragging on and clogging the Sofia City Court.

The information is included in the report of the Inspectorate at the Supreme Judicial Council, presented by Chief Inspector, Ana Karaivanova, as an account for the first 4-year term of the institution.

Karaivanova stresses that these "obsolete" cases, though a small portion of all cases, create a negative attitude towards the judicial system as a whole and become grounds for Bulgaria to be sentenced by the Human Rights Court in Strasbourg.

According to inspectors, many cases are delayed over activities or inactivity of magistrates, who do not use the law to discipline the parties in the process. The delays also lead to termination over prescription and non-disclosure of the truth.

Deputy Justice Minister, Denitsa Valkova, announced that a special unit will be established at the Inspectorate to investigate problems with guilty verdicts against Bulgaria in Strasbourg.

Since its inception in 2008, the Inspectorate has requested disciplinary sanctions against 184 judges, prosecutors and investigators.

COSTLY EQUIPMENT STOLEN FROM INSOLVENT BREWERY IN NORTHERN BULGARIA

Equipment worth approximately BGN 60В 000 has been stolen from the currently non-operational Ledenika & MM brewery in the northwestern Bulgarian town of Mezdra.

The facility is owned by BG Drinks, the company of the controversial businessman Mihail Mihov, who died from a heart attack in a hotel room in Pravets on March 30, 2011.

The police inspection of the site, which was conducted after a tip-off to the 112 emergency hotline, yielded that the raid had been carried out in the period February 11-21, the District Police Directorate in Vratsa reported.

Unknown offenders had broken into the brewery' production hall through an opening in the brick wall and had stolen parts of stainless steel beer tanks, the local police said in a statement, adding that preliminary estimates of the damages amounted to BGN 50 000 – 60 000.

The brewery has been declared insolvent and has been non-operational for over two weeks.

The facility is to be auctioned off to pay a BGN 2 M loan to a bank.

Some ten days ago, it was reported that a total of 69 properties owned by Mihov's heirs would sold to pay off bank debts.

The properties are estimated at around BGN 10 M.

.

'ICE QUEEN' ASDIS RAN DUMPED BY HUSBAND - REPORT

Asdis Ran, aka the "Ice Queen", a popular Icelandic model, has been dumped by her husband, according to the Bulgarian "Bliasak" tabloid.

Ran's husband, football player Gardar Gunnlaugsson, is now "single" in Facebook, reporters have noted.

Rumors that the married couple has split have been circulating in Bulgaria's tabloid press for a while. However, the Icelandic beauty has refuted them.

Ran has risen to great popularity in Bulgaria since 2008, when her husband joined the squad of top Bulgarian team CSKA Sofia for two years.

Her own store in Sofia features cosmetics and luxury underwear made in Iceland and Bulgaria.

Since 2008, Asdis Ran has been a popular appearance on all Bulgarian TV channels, and has been featured on the cover of every major lifestyle magazine in Bulgaria, including making it to the cover of the Bulgarian Playboy in July 2010.

DERAILED TRAIN CLAIMS AT LEAST 49 LIVES IN ARGENTINA

A suburban train derailed in central Buenos Aires, killing at least 49 people and injuring more than 600, authorities have informed.

The death toll from the tragedy may rise because several of the injured are in critical condition and being treated in city hospitals, Alberto Crescenti, head of the city's emergency health services, told reporters more than four hours after the accident.

The train had entered Once station at 26 kilometres per hour, Argentine Transport Minister Juan Pablo Schiavi said, as cited by DPA.

It was arriving at 8:30 am local time and was reportedly carrying around 2,000 rush hour commuters.

According to Schiavi, a problem with the brakes may have been the cause for the disaster.

2 PROMINENT WESTERN JOURNALISTS KILLED IN SYRIA

American Sunday Times reporter Marie Colvin and award-winning French photographer Remi Ochlik have died in the Syrian city of Homs.

Colvin and Ochlik were reportedly staying in a house in Baba Amr that was being used by activists as a media center when it was hit by a shell on Wednesday morning, BBC has informed.

At least two other foreign journalists were wounded, according to activists. Opposition-held areas of Homs have been besieged by President Bashar Assad's regime since February 4.

"This tragic incident is another example of the shameless brutality of the Assad regime," U.S. State Department spokeswoman Victoria Nuland commented, as cited by CBS News.

"That's enough now, the regime must go," French President Nicolas Sarkozy declared after the tragedy.

PONTIUS PILATE BG STYLE

Bulgaria's Prime Minister Boyko Borisov knows he should be more than careful in his staff policy, which has often been a washout with dire consequences.

Unfortunately he just can't help being a populist.

Suffice it to mention the case of Kalina Ilieva, former head of a Bulgarian agency overseeing hundreds of millions of euros in EU farm aid, who was disgraced and dismissed for producing a fake diploma. But that was all.

This week offered other four striking examples of shoddiness and corruption in high-level state appointments – the health fund and irrigation system heads, the registry agency chief and a deputy health minister were kicked out after media-triggered scandals.

(Of course, nothing compares to the unprecedented scandal that the pitiful performance of Rumiana Jeleva triggered in the European Parliament two years ago, but that's another story.)

Now what?

The scenario is well known. Borisov turns into Pontius Pilate, hoping that the average Bulgarian voter rarely looks at substance over appearance and is ready to believe any "savior". The trespassers are publicly executed. He washes his hands to show that he was not responsible for their execution, it was their own fault.

But here is the Bulgarian twist in this particular portrayal of Pontius Pilate's character. The executions are followed by no legal consequences, no real steps to investigate and stop abuses, no explanations as to why now and not earlier.

Borisov has long ago forged past his doubts, set aside any perfectionist tendencies and started to experiment. It may take trial and error but, as the saying goes, throw some spaghetti against the wall and see what sticks. This is what he must be thinking.

But isn't it too late for that approach? Do Bulgarians still believe in the savior, who will rid the land (and state departments) of the plagues?

I don't think so. They are just too tired for that.

Unfortunately they also seem to be too tired to care where the cracks in Borisov's resolve for deep change come from.