The Bulgarian Post
2006-08-14 09:20:50
Bulgarians will have to endure electricity cut-offs should the operations of Sofia heating utility be suspended, the national electricity distribution company warned.
Toplofikatsia company provides 4500 MW, accounting for a huge part of all 6500 MW of electric power nationwide.
The report comes days after Energy Minister Rumen Ovcharov threatened to start a procedure for ruling the company insolvent unless Sofia Mayor Boyko Borissov knocks down to rehabilitating it. The deadline imposed was September 11.
According to Minister Ovcharov Sofia heating utility is in tatters and needs urgent restructuring. The company's profit fell to BGN 4.987 M at the end of July, marking a 50% decrease over the same period last year. The liabilities of the company were BGN 160 M, while its capital stood at BGN 107 M.
Borissov and Ovcharov were quick to jump at each other's throats right after the scandal over misappropriations in Sofia heating utility erupted in early June. Both Sofia Municipality and the Economy and Energy Ministry are in charge of the company.
The investigation into the accounts of Toplofikatsia was launched after the company was found to be bankrupt and in debt, with client's money used for Jacuzzis, a masseuse, and various other pieces of high-class spa equipment that ensured the chief a relaxed day.
The former head of the company Valentin Dimitrov was arrested on charges of tax evasion and money laundering. He is still behind bars.
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