BULGARIAN STATE RESERVE HEAD UNAWARE OF LOOMING SHUTDOWN

The Chair of Bulgaria's State Agency State Reserve and War-time Stocks,Stanimir Peev, says he was not aware of the plan of Finance Minister, Simeon Djankov, to close the agency.

Peev tells Darik radio he had learned about the plan from media broadcasts, and had no idea about details.

The Finance Ministry notes "closing the reserve" means closing the agency and transferring management of the reserve to the respective ministries, but they declined giving more detailed information.

The State Reserve was established in the 50s of the 20th century and is under the authority of the cabinet.

Peev says he also failed to grasp Finance Minister, Simeon Djankov's statements the move will save about BGN 80-90 M for the State Treasury, stressing the budget of the agency is BGN 50-70 a year while for 2012 it had been set at BGN 45 M.

According to the Reserve Head, even the layoff of all 600 employees would only lead to savings in the amount of BGN 4 M from salaries while redirecting activities of the agency would, in reality, up expenses.

Lack of concrete information makes comments on the move difficult, according to former State Reserve Head (2005-2006), Gen, Dimitar Dimitrov, who further told Darik radio that it is absurd to shut down the agency.

In June, 2011, Dimitrov received a not-guilty verdict by the Sofia Court of Appeals on charges he inflicted damages to the State from unfavorable fuel deals.