The house in Barcelona bought with EU money from Bankya

Valentin Zlatev’s company “Terra Tour Service

” has given the money for the house in Barcelona

where in 2013 the model Borislava Yovcheva was accommodated with his daughter. It is at the heart of the corruption scandal.
#Барселонагейт
, as there are doubts that Yovcheva’s child is from the then Prime Minister
Boyko Borisov
. In the same period when Spain was translated EUR 3.13 million for the house and notary fees, a subsidiary of Terra Tour Service Ltd., has won and mastered European projects in Bulgaria for EUR 3.18 million, a joint study of BIRD and Bivol showed.

Where did the money come from?

Money laundering is hard to prove. Even when the inexplicable enrichment is on display, its criminal origin must be proven by the authorities, not the wealthy. The state prosecution has the task of finding the predicate crime – corruption, trading influence, financial abuse, fraud, criminal trafficking or any of the other “four hundred relatively honorable methods of taking money” (Ostap Bender).

Such is the case with Borislava Yovcheva, a young model from Sandanski, who in 2013 lived on a wide foot in Barcelona in a house for 3 million euros, opened a luxury boutique on the navel of the Catalan capital and drove a new Porsche. The Spanish authorities conducted an investigation at the signal of BOETS and found Yovcheva’s inexplicable enrichment, after which they sent the file to the Bulgarian Prosecutor’s Office. According to the Spanish investigation, there is evidence of money laundering and involved
Boyko Borisov
, with whom Yovcheva had a special relationship.

Two years later, the Bulgarian Prosecutor’s Office concluded that there was no evidence that Borisov was involved, but the investigation against Yovcheva, her father and others continued.

The question of the origin of the money remained unclear, but the Bulgarian investigation still got to new data and circumstances. The financial trace is traceable, as Yovcheva wanted to settle in a decent country like Spain, where you can not get property and business for millions by taking cash out of a drawer.

The tracking of the money by bank transfer revealed the role of the company “Terra Tour Service

” Ltd. in the purchase of the house in Barcelona for EUR 2.9 million. It is described in the documents deposited in the National Assembly by Ivan Geshev with a request to lift the immunity of Boyko Borisov and to indict him in the Barcelona Gate case. Investigators have found the following facts:

➤ in March 2013 Alexander Chaushev Buying for 2 900 000 euro a house with a swimming pool with a total built-up area of 559 sq.m., located on Tsarigradsko shose Str. “Francesc Ribalta” No 8 in the Barcelona suburb of Esplugues del Llobregat. Chaushev finalized the deal in Spain on 5 May 2013, when he also paid a notary fee of 232,000 euros.

➤ However, the funds for the purchase of the property are not Chaushev’s. They were granted to him under a contract of mandate concluded between him and the firm.”Terra Tour Service” Ltd. The contract is from 15.02.2013 and it explicitly states the price of the property.

To these facts, the study of BIRD and Bivol adds the significant fact that a subsidiary of “Terra Tour Service” has accumulated a comparable amount of European projects for a short time, which seem suspiciously rigged and of greatly increased value. These new facts have not been examined by the prosecution and provide a possible explanation for the predicate crime, namely, misuse of European funds.

Zlatevi: “Chaushev to find some building”

Terra Tour Service Ltd. is owned by Agrohold AD, which since January 2023 has been renamed to Terra Way Investment Group

AD, and 99% of the shares of Agrohold AD are held by the Cypriot Terra Way Holding Limited

). Terra Way has a beneficial owner. Valentin Vasilev Zlatev – a close friend of Boyko Borisov and longtime director of Lukoil Bulgaria.

Zlatev was questioned in the Barcelonagate case, and his father Vasil Zlatev was questioned even twice. In his testimony before the prosecutor, Valentin Zlatev explains the purchase of the house as follows: The company, where his father is a manager, was researching to buy a hotel in Spain, and at the same time a house in which the Bulgarian staff lived. The deal for the hotel did not happen, but the house was acquired to be used by the people posted there and subsequently sold
for the purpose of

investment profit
.

With the purchase was hired Alexander Chaushev, close to Zlatev from high school and from their studies in Moscow. Zlatev had shown no interest in this property and did not know who lived there, but he knew that after the sale of the property the money returned to the company. “Terra Tour Service

Ltd.

Valentin Zlatev He also said that he did not know Borislava Yovcheva and her father Georgi Yovchev. He and Boyko Borisov were friends, but they had never commented on this property in Spain and had never received offers to finance his projects in the country and abroad. He had never heard of Spanish companies. Numin Invest /where the house is contributed/ and Ema BGS /which owns Yovcheva’s luxury boutique/.

The father Vasil Zlatev (now deceased) gives a slightly different version of the acquisition of the property. There had to sleep employees of the company, seconded for training under contract with RIU (a large international travel company). Chaushev was tasked with “finding a building.”

In your previous interrogation, you said that the property was purchased for investment purposes, and now for training people. What’s true? The prosecutor asks.
“I don’t remember, but for me it was for training,” Zlatev replied. He also claims that he had not even discussed the deal with his own son, which contradicts Valentin Zlatev’s statement.

The facts show that no staff of the company lived there and the property was provided to Borislava Yovcheva and her family. The investment profit target has also not been achieved as the house was sold in 2021 for EUR 1.8 million. Thus, “Terra Tour Service” has lost over 1 million euros.

Euromillions from Bankya

And if trainings in this Spanish house were not held, then in Bulgaria they were held and how. Training with European money. A study of the circle of companies associated with Zlatevi showed that in the same period when the house was acquired, a golden rain of EU funds fell on them. Millions come from the Operational Program “Human Resources Development 2007-2013” and the main contracting authority is NIOXO – a state institute for training of educators. It is a funny coincidence that this institute is based in Bankya, where Boyko Borisov lives.

The friendship between Borisov and Zlatev also has large-scale economic dimensions, as US Ambassador John Beyrle noted in 2006 in a secret report published by Wikileaks and Bivol:

Borissov maintains close financial and political ties with Lukoil Bulgaria Director Valentin Zlatev, an extremely influential political broker and political puppeteer. His loyalty (and vulnerability) to Zlatev plays a big role in Boyko Borisov’s political decision-making process.

Already as Prime Minister, Borisov has strengthened these ties with generous state gifts. Examples are the port of Rosenets, granted a concession to Lukoil for 35 years, the concreting of the fuel monopoly and manipulated public procurement for billions

that go to the company associated with Zlatev “GP Group

“.

But if in the case of “GP Group” the connection with Zlatev is indirect and mediated, then in Barcelona gate is too direct. The EU money has gone through “Hornit

Ltd., which in this period is owned by “Terra Tour Service

” /24%/ and “Agrohold”

” /76%/. Agrohold is the sole owner of the capital of Terra Tour Service. Both companies have the ultimate owner. Valentin Zlatein through a Cypriot offshore. The manager of “Hornit” and Terra Tour Service is the same person – Lachezar Todorov, who has negotiated with Chaushev for the purchase of the house.

The company “Hornit” is a tour operator and its main activity is to sell tourist packages, airline tickets and accommodation in the hotels of Zlatevi. Independently and in different consortia “Hornit

Ltd. has provided and provides services to state institutions – mainly airline tickets, according to

a reference in the SEBRA system.

Until 2013, Hornit was not among the companies that won EU projects, and Borislava Yovcheva was not a resident of Barcelona. The beginning of 2013 was a key period, because then “Terra Tour Service” bought Yovcheva’s house, and its subsidiary “Hornit” joined 2 projects funded with European money, where it performed in various unions 4 public procurements. Three of them are assigned NIOXO and one belongs to the Ministry of Health.

Information about these projects and public procurement is found in the UMIS system, in the Public Procurement Agency and in the SEBRA

payment system.

In all these procurements there are oddities characterizing the rigged tenders intended for the “right” contractor.

Project BG051PO001-3.1.03-0001

“Qualification of pedagogical specialists” and in particular “Conducting teacher trainings for prevention of school violence, aggression and others” for BGN 9 million.

Public procurement in case 01473-2012-0001 was opened by Decision No: 109-KPS-03 of 24.09.2012 and was published on 06.11.2012.

It is an incredible coincidence that exactly on 03.12.2012 DZZD “Union for Training No to Violence

“, UIC 176553232, in which “Hornit” holds 53%.

The decision to award

the contract was taken on 02.08.2013 , and on 02.09.2013 a contract DO18-CPS-03 was signed, with a contact with an email and telephone number of “Hornit”.

The SEBRA system shows

that BGN 9,037,903.21 have been paid under this contract. Hornit, which has 53% in the union, is entitled to BGN 4,790,088.

It is also remarkable that the information

about this project in the UMIS system lacks exactly this DZZD with “Hornit”, although it has absorbed a large part of the money.

Another public procurement under the same project is for “Training of kindergarten teachers to work in compulsory pre-school groups” for BGN 3.7 million.

File 01473-2012-0005 was opened by Decision No: 133-KPS-03 of 07.11.2012.

On 02.01.2013 the conditions were
changed
significantly.

On 23.01.2013 DZZD “Society for Training of Children’s Teachers” was established

“, UIC 176453004. In it

“Hornith” holds 12.5%.

On 26.09.2013 a contract DO20-CPS-03 was signed. Under this project are
paid
BGN 3,744,133.91 or for “Hornit”, which has 12.5%, they are entitled to BGN 468,016.

A third public procurement under the same project is for “Training of pedagogical specialists for the formation of knowledge, skills and competences to work in an intercultural environment” for BGN 3.5 million and with case number 01473-2013-0001. The procedure was opened by Decision No: 132-PSC-03 of 07.11.2012. It was announced

on the website of the PPA on 24.01.2013, but a month later, on 05.02.2013, the assessment methodology was significantly changed.

On 20.02.2013 was established DZZD “Society for training for work in intercultural environment”

“, UIC 176468821. In it, Hornit holds 10%. On 31.05.2013 a contract was signed UNTIL 09-CPS-0.

3,582,880 were paid, and Hornit was entitled to 10% or BGN 358,288.

As you can see, none of the orders of the institute from Bankya went smoothly. Dates have been changed, parameters have been adjusted and the terms of tenders have been edited.

However, this is not all. “Hornit” has received EU funds from the Ministry of Health under a project
BG051PO001-5.3.02-0001
“Stop and get checked” for BGN 1.9 million.

The file is 00080-2012-0071 and the procedure was opened by Decision No: RD-17-598 of 17.10.2012 On 26.11.2012 DZZD “Health for All” was established

UIC 176461403. In it, Hornit holds 30%.

On 22.01.2013 a decision was taken

for awarding the contract, and on 22.02.2013 a contract was concluded: RD-17-159. Under this project are paid

BGN 1,950,889.92 For “Hornit” with its 30% this makes BGN 585,266.

Thus, of these four public procurements of “Hornit” Ltd., BGN 6,201,658 are due. or EUR 3 180 337.

Let’s recall that the price of the house in Barcelona is 2.9 million. EUR 232.000 notarial fees or a total of EUR 3 132 000.

The pouring of European money into “Hornit” has a positive impact on the financial situation of the company. For 2013 and 2014, when payments from EU projects were received, it reported a profit of BGN 232,000 respectively. BGN 1 263 000, and in 2014 the parent company Agrohold raised its capital by EUR 1 563 710. The following 2015, Hornit ended at a loss of $1.8 million. the annual financial statements of the company show.

It is also remarkable that before 2013 “Hornit” did not take a single lev from European funds. After the harvest period with the “contracting authority from Bankya”, the company has won only two projects with EU funds, which are for more modest amounts. One of them is from 2018 with Sofia University for organizing and conducting training schools

– BGN 36,810.83, and the second

from 2020 to provide airline tickets for the General Labor Inspectorate – BGN 119,794.59.

Funds managed manually by Borisov

Of course, the plentiful European funding for a company from the holding of Valentin Zlatev, a friend of Prime Minister Boyko Borisov, who with another company buys a house in Barcelona, where Boyko Borisov’s close friend lives, can only be a coincidence.

There is a coincidence both in the time of the purchase of the house in Barcelona, and in the amounts received and spent with about 2% deviation. The difference of about 50,000 euros between the price of the house and the absorbed EU money can be explained by the accompanying costs of the deal and the fee of Chaushev, who undertook to secure the building.

These coincidences, however, deserve the full attention of the European Public Prosecutor’s Office after the Bulgarian one decided to close the case with the house in Barcelona. Because we are talking about millions of the European taxpayer.

Moreover, there is information on how Borissov, in his capacity as prime minister, personally ordered illegal acts with European funds. Such is the case with the infamous “cannibal signal”.

From a story by former Interior Minister Boyko Rashkov, it became clear that Borisov threatened the head of the SFA, Svetoslav Simeonov, because he refused to reimburse the company 1.4m euros. Lv. VAT on an EU-funded food project for the poor. And Simeonov refused, because the invoices presented were fake.

The threat was particularly harsh: “How he was told that he had a wife and children who would not know if they were eating his meat. And this thing is said by this and let him stop talking,” Rashkov said of Borisov.

In a signal to the Ministry of Interior, the owner of the company, who requested anonymity at this stage, wrote verbatim as follows:

A week later /Miroslav/ Naydenov called me very happy and verbatim told me: “Borisov called this gypsy Simeonov, crushed him, slapped him, the gypsy roars in front of me.” After a short period of time, I don’t remember how much, 1 400 000 lv. were received in my company’s account by the SFA.

In order to thank Borisov, the sender of the signal raised BGN 250,000. cash, changed them into euros and handed them over to Miroslav Naydenov in the toilet of a restaurant on Macedonia Square.

This is
de facto
a rare confession of the crime of bribery, sent to the Ministry of Interior on 06.07.2021 and signed by the sender, who explicitly expresses a desire to testify before the competent authorities. And so far, this signal is aging somewhere in the dusty folders of the prosecutor’s office.

In the case of Zlatev, it has hardly come to slaps and threats to make him on salami if he does not buy the house in Barcelona. European money has done the job in a discreet and elegant way to seal the omerta between the two. And to strengthen “Borisov’s loyalty (and his vulnerability) to Zlatev.”

In his new role of Euro-Atlanticist, Borisov is no longer loyal to the resident of Russian interests in Bulgaria and wants to break with vulnerabilities. This is not easy, as a word of “Vasilić”, as Borisov calls Valentin Zlatev, can ruin Boyko Borisov’s defensive line and return him to the epicenter of Barcelonagate.

Joint investigation of BIRD and Bivol.

***

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