The Governing Council of the Bulgarian National Bank to Discuss Issue Related to Anti-Corruption Commission Decision
The Governing Council of the Bulgarian National Bank (BNB) will convene on July 16 to discuss the issue related to the decision of the Anti-Corruption Commission (ACC), according to which the deputy governor of the central bank in charge of “Issuance” is incompatible with the position held. According to Art. 14, para. 2 of the BNB Act, the Governing Council of the bank should take into account this decision in the context of the principles and rules of central banking and assess to what extent this violation already established by the Anti-Corruption Commission is grounds for action.
The situation with Mr. Gyurov at the Bulgarian National Bank
In a recent interview, the Governor of the Bulgarian National Bank, Dimitar Radev, discussed the ongoing case concerning Mr. Gyurov. The Anti-Corruption Commission has ruled that Mr. Gyurov’s position at the bank is incompatible, a decision he is currently appealing.
What actions should the Bulgarian National Bank take?
According to administrative law, the Bank’s Governing Council is required to initiate proceedings and make a decision on the case within a two-week period, not later than…
The first regular meeting of the council on July 16th
The first regular meeting of the council will take place on July 16th. The main topic of discussion will be the direction of the decisions made by the National Bank of Bulgaria. The Council must acknowledge the decisions of competent institutions such as the Commission for Protection of Competition (CPC) and comply with their legal competences and authorities. This involvement not only has legal implications but also political dimensions in the context of debates on regulatory and law enforcement bodies. Engaging in such political debates is unacceptable for an independent, professional, and depoliticized institution.
The Role of the Central Bank in Fighting Corruption
The decision made by the Governing Council should be considered in the context of the principles and rules of central banking, in order to assess whether the violation established by the Anti-Corruption Commission is grounds for the release of its member. This is done in accordance with the procedure under Article 14, paragraph 2 of the Central Bank Act, which was introduced in one of the latest amendments to the law.
Criteria for the Dismissal of a Member of the Governing Council
The criteria for the dismissal of a member of the Governing Council of the Central Bank are specified in the Central Bank Act. These criteria include violations of the principles and rules of central banking, as determined by the Anti-Corruption Commission.
Release of a Member of the Management Board of the Bulgarian National Bank
The release of a member of the Management Board of the Bulgarian National Bank can occur for two main reasons – if they do not meet the requirements necessary for the performance of their duties, or if they are found guilty of committing a serious violation. Does this mean that the Management Board of the Bulgarian National Bank can dismiss Mr. Gyurov from his position? – No. Only the appointing body, which is the parliament, has the authority to do so. In this case, the Bulgarian National Bank simply determines whether the existence of incompatibility is grounds for the release of its member.
What is the purpose of the procedure under Article 14, paragraph 2 of the Bulgarian National Bank Act then? – Typically, this procedure is used to ensure that all members of the Management Board meet the necessary requirements and are fit to carry out their duties effectively.
Challenges of Incompatibility Decisions in Anti-Corruption Commission
Decisions regarding the incompatibility of the Anti-Corruption Commission are directly submitted to the body responsible for appointing the respective official, who can immediately dismiss them from their position. This process, however, presents a significant challenge for members of the Supervisory Board of the Central Bank, given the importance of personal and institutional independence.
The most crucial difference lies in the fact that if the affected individual disagrees, they cannot be prematurely relieved of their duties without a decision from the competent court, in this case, the Supreme Administrative Court. This restriction adds an extra layer of complexity to the process, requiring thorough legal scrutiny and adherence to due process.
Legal Procedure for Judicial Review
One such procedure involves a judicial review that is subject to court control. In case of an appeal, the Supreme Administrative Court must decide whether the Financial Supervision Commission has validly accepted the findings of the Anti-Corruption Commission for the grounds of dismissal or not. If the court rules against the dismissal act, Mr. Gyurov will continue his mandate; if the dismissal act is confirmed, it will be submitted to the parliament for a final decision. What about the appeal that Mr. Gyurov has already submitted to the court? Expectations are that
The Court’s Decision
The court is expected to render a decision soon, but this may take some time. My understanding is that the main question the court must address is whether this appeal is admissible or not, depending on its interpretation of whether the decision of the CPC constitutes an administrative or procedural act. Mr. Gyurov’s appeal does not suspend the procedure in question. It is within the court’s jurisdiction to decide whether to consolidate the consideration of the appeal already filed and a potential new appeal or to consider them separately. Everything seems very complex from a legal standpoint.
Legal Precedent Set in Banking Case
In a recent decision, the National Bank of Bulgaria has set a legal precedent in resolving a complex banking case, with hopes that similar issues will not arise in the future. Working closely with legal experts both within and outside the bank, the bank’s legal team has ensured that their participation in the case is flawless from a legal standpoint. The decision on the case involving Mr. Gyurov will be made by the bank’s board of directors on July 16 and will be publicly announced.
Mr. Gyurov will be present at the board meeting and will have the opportunity to present his case. This decision marks a significant step in the legal landscape of banking in Bulgaria, setting a standard for future cases of a similar nature.
The position that will be applied to the decision of the Supreme Court
There is a position that will be applied to the decision of the Supreme Court. However, according to the current rules, this position cannot participate in the voting.
