Sofia municipal companies to undergo reforms

In early February, the session of the SMC (Sofia Municipal Council) will schedule the contest date for the election of new heads of the local markets East, West, South, North and Vazrazhdane (Revival), announced yesterday to Klassa daily, the Chairman of the SMC Industrial Commission, Nikolay Stoinev from GERB (Citizens for European Development of Bulgaria). Later, the management of the municipal companies such as Chistota (Cleanliness) and Sportna Sofia (Sportive Sofia) will be changed. Finally, new directors will be appointed in the transport companies in the Sofia Municipality, explained Stoinev.

Serious reforms are also due in some of the most controversial municipal companies. Among them are Sofiyski Imoti EAD (Sofia Real Estates SPLTD), EGIDA, Galatea and Lozana. The future of the companies is still unclear since the option of a possible privatisation is also being considered but, if it comes to that, it will only take place after the implementation of the relevant legal analysis, according to municipal officials.

"If it comes down to the privatisation of Sofia Real Estates SPLTD, it will affect only parts of the company, i.e. solely some properties and not the entire company," stated Nikolay Stoinev.
There are several legal proceedings running against the municipal company, which is financially attractive and has many real estates with unclear legal status. EGIDA, in turn, has been generating losses for several years, despite the fact that for a long time it collected the rents of the leaseholders of subway stores. The existence of the security company is questionable given the fact that there is an effective municipal police. Galatea manages the school camps and holiday homes in some of our most famous seaside and mountain resorts, but the legal status of some of its properties is also contentious, while serious investors' interest has been expressed in these. Lozana is a company with social functions because it provides employment for people with disabilities but it is also in a poor financial state.

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