Bulgarian MPs urge U.S. to sanction political party controlled by Magnitsky-listed power broker

In a bold move, a group of Bulgarian Members of Parliament (MPs) loyal to the historic leader of the Movement for Rights and Freedoms (MRF, also known as DPS), Ahmed Dogan, have appealed to the U.S. Office of Foreign Assets Control (OFAC) to consider sanctioning their own party.

The request, detailed in a letter seen by EUalive, centers on the controversial figure of Delyan Peevski, a sanctioned Bulgarian oligarch and politician who has seized control of the MRF’s leadership and finances. The MPs argue that Peevski’s dominance over the party, combined with his status under the U.S. Global Magnitsky Act, warrants scrutiny of the MRF as a potential tool for circumventing sanctions and perpetuating corruption.

Peevski’s Rise and Sanctions

Delyan Peevski, a media mogul and influential political figure in Bulgaria, was sanctioned by the U.S. Treasury Department’s OFAC on 2 June 2021, under Executive Order 13818 for his “substantial role in significant corruption.” The designation also targeted multiple companies under his control, citing his involvement in grand corruption, as further reinforced by the U.S. State Department’s public designation under Section 7031(c). Known for his extensive influence over Bulgaria’s judicial system, prosecution, and secret services, Peevski has long been a polarising figure, often accused of leveraging state institutions to target political adversaries.

Despite these sanctions, Peevski has consolidated power within the MRF, a party historically representing Bulgaria’s Turkish minority. Following a dramatic internal split, he ousted the party’s co-chair and assumed sole leadership, gaining unilateral control over its organisational structure and finances, including a public subsidy of approximately 1 million BGN (over $550,000 USD). This financial control, facilitated through a newly established bank account under his authority, has raised alarms among MPs loyal to Ahmed Dogan, the MRF’s founder and long-time leader.

The letter: a call for OFAC action

The MPs’ letter to OFAC highlights concerns that the MRF, under Peevski’s exclusive control, is being used as a vehicle for illicit activities, including money laundering, vote buying, and influence peddling. They argue that the party’s structure, which grants the sole chairman full authority over its bank accounts and assets, enables Peevski to potentially bypass U.S. sanctions. The letter points to the lack of transparency surrounding the financial institution that permitted the transfer of the party’s subsidy, despite repeated inquiries to Bulgaria’s Ministry of Justice.

Citing precedents where political entities in Eastern Europe were sanctioned for serving as tools of corrupt or designated individuals, the MPs urge OFAC to evaluate whether the MRF itself should be designated under the Global Magnitsky Act. They emphasize four key points:

Peevski’s sole control: the MRF is now governed and financially administered exclusively by a sanctioned individual.
Financial authority: party resources and bank accounts are under Peevski’s direct control.
Corrupt practices: credible concerns exist that the MRF is being used for illicit activities, including money laundering and vote buying.
Sanctions evasion: the party’s structure may facilitate circumvention of sanctions imposed on Peevski.

The MPs offer to provide documentary evidence, witness statements, and testimony to support their claims, expressing readiness to cooperate with OFAC or the U.S. Embassy in Sofia.

Implications for Bulgaria and beyond

The MPs’ appeal underscores the deepening rift within the MRF and the broader struggle for democratic integrity in Bulgaria, where Peevski’s influence has long cast a shadow over politics. The MRF, once a significant force advocating for minority rights, now faces an existential crisis as Peevski’s leadership threatens its legitimacy. By appealing to OFAC, the Dogan-aligned MPs are not only challenging Peevski’s grip on the party but also signaling a broader call for accountability in Bulgaria’s political and judicial systems.

If OFAC were to designate the MRF as a sanctioned entity, it could set a significant precedent for targeting political organisations controlled by sanctioned individuals. Such a move would likely disrupt Peevski’s financial operations and send a strong message about the U.S.’s commitment to combating corruption globally. However, it could also complicate Bulgaria’s political landscape, potentially weakening the MRF’s role as a representative of the Turkish minority and further polarising the country’s already fragile democratic institutions.

Caption: Delyan Peevski as phoshopped by his political party public relations team [BTA]