Millions of EURO’s Deal During the Elections in Sofia




11 exceptionally attractive municipality properties have become part of the assets of a newly created joint-stock company right between the two rounds of the local elections in Sofia. This becomes clear as per decision # 2 of a company case # 11336/2003 listed in Sofia Public court, dated November, 4, 2003, on disposal of “24 hours” daily.


According to this decision the court inscribe in the trade register changes concerning “Sofia city company” joint-stock company. According to these changes the capital of the company is planned to be increased


from 50 000 lv


to 18 400 000 lv.


by emission of new shares. 


The main activity of the company is investigation, designing, building, mediation and consulting, advertising and marketing, as well as deals with real estates. Toshko Dobrev, the former chief of “Sofia real estates” company is a chairman and Executive Director of the corporation.  


He has to lay down this post, after he was elected municipal councilor. Yesterday he was also elected to be a chief of the Permanent Municipal Architecture, Urbanization and Residential Policy Commission.   


“I am not a partner in any private company and I am not a share-holder in a private company”, Dobrev replied to “24 hours” daily question. It is possible he to be a member of the board of a compound association where municipality and private capitals are collected, he specified. The logic was that a private businessman invests in maintenance of the aported real estates. All these activities are based on Capital Municipal Council’s decision, Dobrev assured. The decision was made during the previous mandate of the Capital Municipal Council, but because of some technical issues the association is registered recently. 


When such a decision was accepted by the municipal councils, “24 hours” daily asked Asen Diulgerov, ex municipal secretary during the previous mandate. After a precise verification no decision about “Sofia real estates” company signed in 2003, had been found, he shared.


Every decision concerning 5% from the assets of the municipal association, on principle have to be put to the vote by the municipal council.


“Sofia Real Estates” company possesses 34% from “Sofia City Company” and comprises as aport payment


11 real estates together


for 6 239 000 lv.


as their area in a total is over 52.5 decares. 50 EURO per sq. m. is the market price in this region, real estate brokers say. Actual deals from 250 up to 300 EURO per sq. m. also have been made. So, the real aport value is significantly higher, this is for sure. 


Sofia municipality is sole owner of 100 % of “Sofia’s property”. This means that the municipal company possesses exceptionally attractive building plots in South Park region, right behind Spartak swimming pool, such as terrains for tennis cords, a club center and safety lanes.


“Just because these type of cases I ordered to be cancelled all kinds of deals with municipal property”, Stefan Sofianski commented.


Vladimir Kisiov, Capital Municipal Council chairman, reassured that regardless transferred to “Sofia City Company” real estates,


nobody in the company


could boss these real estates 


Based on a general meeting decision from October 31, 2003 these real estates have become assets of the association. This happened exactly between the two rounds of the local elections. The stranger thing is that the rests of “Sofia City Company” owners – “Stara Planina Hold” and “Sunny Beach Holding”, have predominantly anonymous owners.    


Who stays behind


“Sofia City Company”


Except Tosho Dobrev, Valeri Yosifov and Evgeni Uzuno are in the management of the association as well. They are representatives of the three major owners of “Sofia City Company” – “Sophia’s proeprties” (34%), “Stara planina hols” (34%) and “Sunny Beach Holding” (32%).


Uzunov is the last one occupying the post of the first secretary of Central Committee of the Youth Communist Organization and is a member of the Board of the Directors of “Stara Planina hold”, which controls 34% from “Sofia City Company”. His partners in the management are Anna Sabeva, Boiko Hadjiatanasov, Vassil Velev, as well as “Grameks” JSCo, “Grameks” JSCo in Plovdiv and Slovak firm “Invest Company”.


The owners of


“Stara Planina Hold”:


5,9% - “Garant - 5” – Plovdid (owned by BMP, “Bulconsult”- investment and management agency together with “Bik hold”, entourage of “Stara Planina hold” management).


17% - "Potbul Invest Foundation”, Lichtenstein


71% - a group of physical persons (formulation used to describe anonymous owners).


Who stands behind them


“Sunny Beach Holding”,


that possesses 14.8% of the shares of “Sunny Beach” JSCo., where the state is an owner of majority?


The association is managed by Georgi Kogelov, Nikolai Nikolov, Dimo Nachev, Milan Petrov Milanov and Yordanka Gancheva, but its owners are:


1,68% - “Tourism Sunny Beach” Co-operation


60,45% - group of physical persons


0,91% - Nesebar Municipality


0,03% - Pomorie Municipality


9,79% - "Иmpetus", registered in Bourgas on behalf of “Ancora” company – offshore firm in Terks and Kaikos Islands


8, 97% - “New properties”, registered in “Liulin”, owned by “Hardenger” Ltd., Cyprus offshore company  


9, 75% - “Global Investment Group”, registered in Bourgas


9.20 % - “Vilet” – registered in Sofia, owned by Cyprus of-shore Company


0.91% - group of non-physical persons (of-shore companies)


The municipality councilors canceled all the deals


Capital Municipality Council putted a veto yesterday on all transfer deeds regarding right of property or any other kind of right treating property, as well as disposition with any kinds of assets possessed by Sofia Municipality. 


The interdiction is valid for all municipal sole-tradesmen and joint-stock societies, for shares and right for joint-stock participation of Municipal Bank, Sofia Municipal Privatization Agency and compound associations, established by the city council with private capitals.


The veto will be valid for five month and a half period. This is the time expected for the temporary commission for control of the municipal associations to prepare its standpoint on if there are some offences against the law.


Representatives from the Union of the Free Democrats were the first who brought their official report.  


“At the moment different competent deals are implementing using the shares and tangible assets of the firms. We do not know anything about these operations, but we don’t have to be also responsible for them as a municipal councilors”, Asen Diulgerov, leader of the Union of the Free Democrats in Capital Municipality Council stated.


Union of the Democratic Forces supported the official report that finally was carried with a big majority by all the groups.


During the time of the examination of the companies the current chairmen of managing and supervisor’s committees will continue working, but all regional mayors and municipal councilors participated in the management bodies of these associations are removed from office, Vladimir Kosiov reassured the press.


What kinds of areas are included in this association?


1. Tennis cords, approximately 2000 sq. m. terrain, between “Zabarde” and Prlovska River.


2. 3320 sq. m. terrain planned to be a club center and approximately 3100 sq. m. surrounded by “Petko Karavelov” Str., Perlovska river, association “Planting” building and lawns.


3. 3700 sq. m. terrain planned to be an administrative building, part of a firing ground


4. Approximately 2610 sq. m. terrain, between Perlovska River and lawns from all three sides, planned to be a restaurant and a confectionery.


5. Around 2280 sq. m. terrain – walkways and lawns, planned to be a concert hall.


6. 2580 sq. m. terrain – areas and walkways, planned to be a exhibition complex.


7. 3770 sq. m. terrain and lawns, planned to be a multifunctional hall.


8. 5762 sq. m. terrain planned for sport activities.

9. 18 680 sq. m. terrain, planned to be a swimming complex and a parking.


10. Approximately 500 sq. m. un unadjusted property parking area.


11. Around 9100 sq. m. terrain between “Arsenalski” Blvd. and “Petko Karavelov” Blvd.