Банкеръ Weekly

Briefs

THE SLAVYANY BANK CASE STARTED DOWN THE STAYED PROCEEDINGS SPIRAL

On April 24, 2001 the Sofia Regional Court will re-open the proceedings against Roumen Zhechev, former Chairman of the bankrupt Slavyany Bank Board of Directors, and Petko Kolev, former Executive Director of the bank. Both were accused of a criminal breach of trust in accordance with Art. 282 of the Criminal Code. Almost all investigated managers of credit institutions declared insolvent were incriminated on that grounds.
Zhechev and Kolev were accused of having signed on November 21, 1995, contracts with five inactive companies - Master Orion, Build Centaurus, Trade Proxima, Mirabell and Iva Trade - which have undertaken other companies' liabilities to the bank. The operation would not have attracted the attention of the legal authorities should the bank had not gone bankrupt and the new debtors have serviced the credits they have undertaken. Accoridng to the prosecutors Zhechev and Kolev have gone beyond the scope of their authorities and have accrued losses for Slavyany Bank exceeding BGL1.8MN.
The operation which lead Zhechev and Kolev to court aimed at transferring the liabilities which the operating companies CGA-ESPAL, Kiwi CGA, Sigma, Orak and Trayanka had to Slavyany Bank to the non-operating Master Orion, Build Centaurus, Trade Proxima, Mirabell and Iva Trade, thus liberating the former ones from their liabilities to the bank. In this way each of the five operating companies was relieved from liabilities amounting to USD1.4MN. Proceeding with the operation was not difficult as all ten companies were in one way or another related to CGA International Holding - a company controlled by Georguy Agafonov - the bank's patron and currently an MP. He was also summoned to give testimony to court at its last session, which took place on March 2, 2001, but he did not appear saying he was too busy to do so.
The other three wittnesses, summoned by the court to clarify the details of the operation for which Roumen Zhechev and Petko Kolev were accused, also did not appear in court. Zhechev also missed the last court session, as two days before he went for medical treatment at the Rousse based oncology clinic. As none of the wittnesses and one of the accused did not appear, Sofia Regional judges had to postpone the proceedings till April 24, 2001. It is quite possible on that date also some of the summoned to be missing, which will force the magistrates to postpone the proceedings for a later date.

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