Corruption scandal rocks Bulgaria’s reformist opposition

A major corruption scandal has shaken Bulgaria’s reformist opposition, engulfing the We Continue the Change party (PP), a member of the Renew Europe group in the European Parliament.

The controversy erupted after a leaked audio recording, most probably disseminated by Bulgaria’s security services, prompted the resignation of party co-leader and former Prime Minister Kiril Petkov.

On Wednesday, Petkov announced his resignation from both the party leadership and the national parliament.

“I take personal political responsibility and resign as co-chair of We Continue the Change. I am also stepping down as a Member of Parliament,” Petkov declared during an emergency press conference where he appeared alone, without the presence or support of his party colleagues.

Just hours before the press conference, multiple media outlets received from unknown source a 25-minute audio recording of a conversation allegedly between Sofia’s Deputy Mayor for European Affairs, Nikola Barbutov, and Georgi Todorov, mayor of the city’s largest district, Lyulin.

The wiretap begins with casual chat but quickly turns to a detailed discussion of alleged party financing arrangements.

According to the wirteap, Barbutov described a system in which several companies would be favored in public procurement, in exchange for donating around 6% of each contract’s value back to PP and the municipal administration involved. He explicitly said this was different compared with the allegedly higher “cut” of 20% that he claimed Bulgaria’s ruling GERB party (EPP) typically demands from contractors.

The conversation also references specific firms to be favored, including one linked to the spouse of a political figure. Barbutov reportedly claimed the system was approved at high levels within PP, mentioning names from the party leadership.

Petkov denounces betrayal of party principles

In his statement, Petkov emphasized PP’s founding commitment to “zero tolerance” for corruption. “Neither I nor anyone in the party leadership was aware of this. To be clean of corruption is not enough to be a good leader,” he said. “If the recording is authentic, this is a serious mistake – especially that such a conversation was initiated by a district mayor.”

He called the failure of the mayors involved to alert the party leadership “a massive failure” and described the situation as a betrayal of PP’s anti-corruption mission.

Targeted investigations raise questions of political bias

The scandal has sparked renewed concerns over selective enforcement by Bulgaria’s security services, which have frequently pursued opposition figures while avoiding cases involving GERB or its powerful allies. Critics point out that former Prime Minister Boyko Borissov, GERB’s leader, has faced numerous corruption allegations over the past 15 years – some substantiated by audio leaks, without ever suffering political consequences or stepping down.

Many independent analysts argue that Bulgaria’s security and judicial institutions are increasingly influenced by Delyan Peevski, a sanctioned oligarch-politician under U.S. Magnitsky and UK anti-corruption measures. Peevski, a figure with extensive sway over Bulgaria’s judiciary, has even been informally considered as a potential future prime minister.

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

Late last year, Renew Europe and ALDE began procedures to expel Peevski’s party, the Movement for Rights and Freedoms (DPS – New Beginning), from the liberal parliamentary group over longstanding corruption concerns.

Deputy mayor Barbutov detained, charged with leading criminal group

The scandal deepened after Barbutov was detained during an operation by the Anti-Corruption Commission at Sofia’s municipal offices.

Three others linked to local companies were also arrested. Barbutov initially claimed to have been framed and submitted his resignation.

However, his lawyer later confirmed that he had been formally charged as the head of an organised criminal group and for offering a bribe.

The audio recording sent to the media supports these charges, describing a system where loyal companies would receive public contracts and later donate back to the party and administration.

Additional investigative reporting revealed that some of the companies named in the recording had already been awarded contracts in the districts of Lyulin and Mladost. The mayors of these two largest districts in the capital resigned in unison on Monday and left the PP party, citing pressure related to public procurement procedures. Barbutov reportedly discussed deploying expert teams to tailor procurement documentation, allowing friendly companies to win bids. He explained how tenders could be designed to favor specific firms – either through lowest-price criteria or technical specifications, depending on the contracting authority’s preferences.

Fallout and implications for Bulgaria’s reform agenda

In Parliament, PP is in coalition with another pro-European formation – Democratic Bulgaria (PP-DB), whose leaders are calling for a thorough investigation into the corruption allegations involving their coalition partner.

The scandal has dealt a serious blow to the credibility of Bulgaria’s reformist opposition at a time when the country is under increasing scrutiny from EU institutions over rule-of-law concerns. It also underscores the uneven enforcement of anti-corruption efforts in the country, with opposition figures facing intense investigation while those linked to the ruling establishment and sanctioned oligarchs remain largely untouched.

Petkov’s resignation is seen as a rare instance of political accountability in Bulgaria, where leaders embroiled in far more serious scandals have often weathered public outcry without consequence. Yet the episode may have long-term implications for the unity and moral authority of the pro-European opposition.

Caption: Kiril Petkov pictured during a campaign event of the PP-DB coalition in October 2024. EPA/VASSIL DONEV