Dunchev: Is there an ulterior motive behind the threats to close factories, aimed at removing the protection of centuries-old forests?

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Александър Дунчев
Александър Дунчев. Снимка: Facebook

Today, Alexander Dunchev commented on whether there is a backstage behind the threats to close factories and an interview of the owner of the „Sviloza“ chemical plant, Krasimir Dachev, given on February 17. On this occasion, he shared the following post on Facebook:

„Today we are investigating whether there is a behind the scenes behind the threats to close factories, with the aim of removing the protection of centuries-old forests in Bulgaria!

The occasion is the media attack and statements (mainly by Krasimir Dachev – owner of Svilosa) from 17.02.2023: „Key plants stop working, thousands without work, because of the high prices of wood“.

If the media had bothered, however, they would have realized that in fact these loud threats are a form well developed over the years for specula and pressure on the state! Why?!

Every year Dachev explains that there is a lack of wood, but in fact it is a lack of „wood for no money“. I am asking an economist to explain to Mr. Dachev that Bulgaria has been a market economy since 1989. In a market economy, price is determined by supply and demand.

But let’s see the facts that answer the question, is this about economics or pure racketeering?

On June 14, 2022, „Svilosa“ suspends production for an indefinite period of time.

On 09.10.2021 „Svilosa“ stops working, there is no wood“.

On 06/29/2020, „Explosion in „Svilosa“ closes the enterprise indefinitely“.

On 26.12.2017 „Crisis! That’s why „Svilosa“ is stopping! The businessman Krasimir Dachev with exclusive revelations about the satrap from the Northwest“.

On 06.02.2009 it is announced that „They are closing „Svilosa“ – 450 workers from the cellulose plant have been laid off. The chemical plant „Svilosa“ JSC in Svishtov has stopped working, due to financial problems“.

There is serious interest, what is the reason for the regular threat from the company representative and member of its board of directors, namely Krasimir Dachev? Moreover, according to a publication dated 06/22/2022, he is “the largest owner of private forests in Bulgaria.

This fact also leads to the conclusion that the lack of resources should not be a problem for the enterprise, as well as the high prices of wood, due to the presence of its own forests. According to the Ministry of Agriculture, over the years it is „Cviloza“ JSC, through its subsidiary „Svilotsel“ JSC, that has been categorized as a „Major user“ who is purposefully provided with wood from the state forest territories. According to IAG data, the total annual amount of wood from DGT provided to the so-called „Major users“ is about 1.5 million sq. m3 of wood, and more than 300,000 sq. m3 are intended for „Svilocel“ EAD, which is about 20% of the corresponding wood provided annually, with a total yield from DGT of 4 -5 million m3/year Last year, Bivola and I revealed how Svilosa was one of the factories receiving thousands of cubic meters of wood at zero cost through vicious long-term contracts.

A review of the felling certification protocols shows that the plantations provided for felling by „Svilocel“ EAD are often not realized and the wood cut is less than the agreed amount. This indicates either a lack of interest in logging or obtaining a resource from other sources, but at what price and under what conditions remains a trade secret, and its legality is anyone’s guess. This year, Svilosa got into another investigation of ours – about the illegal cutting of forests in pastures, which IAG and the prosecutor’s office began to stop a month ago on our signals.

But the most interesting is yet to come!! According to estimates by the Ministry of Economy, large wood processing enterprises are able to take in and process about 18 million square meters of wood per year. This shows that the built capacities for processing and utilization of wood from the large factories far exceeds the capabilities of the Bulgarian forests.

Now, is there anyone who still believes that the factories do not apply speculative actions and regularly influence the state with threats to close capacities, through media publications, while in fact they are looking for a way to negotiate favorable terms for themselves, under pressure. Such actions are primarily detrimental to state-owned forestry enterprises and state-owned forests, which are expected to generate revenue for the benefit of the forest and society, but are in fact subject to constant corruption and political pressure to drain.

How is this resolved? With free competition, lack of restrictive conditions (such as debt auctions, large packages and rigged auctions), with transparency and with integrity to guarantee full equality of companies in the market, maximum protection of state interest, elimination of speculation, as well as elimination and the slightest suspicion of backroom dealings and corruption. But is there anyone to fight for these trinkets anymore…”

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