San Marino saga takes positive turn: judge dismantles ‘Parallel Plan,’ opposition demands inquiry

In a significant breakthrough for the ongoing Banca di San Marino (BSM) dispute, a Sammarinese judge has decisively rejected the “parallel plan” accusations against Bulgarian investor Starcom Holding AD and its associates, ordering releases and warrant cancellations.

Coupled with vocal opposition demands for a parliamentary inquiry, these developments – first reported by local media – offer a glimmer of hope for resolving the €15 million frozen funds saga that has strained San Marino’s EU association aspirations. EUalive.net, which broke the story in November 2025, examines how this could influence the micro-state’s path to closer EU ties amid lingering concerns over judicial transparency and rule of law.

The case, dubbed the “Bulgarian affair” in San Marino, centers on Starcom’s thwarted €36.7 million bid for 51% of BSM: €16.7 million for equity plus €20 million capital injection. Approved by BSM’s church-linked owner Ente Cassa di Faetano (ECF) in May 2025, the deal collapsed in October when the Central Bank rejected it, citing AML concerns. Funds deposited via San Marino Group S.p.A. (SMG) remain seized, sparking criminal probes into “private corruption” and “breach of trust.” Starcom, Bulgaria’s largest publicly listed holding with €1.5 billion in assets and operations in 11 countries, has decried the freeze as “unprecedented,” accusing AIF Director (and MONEYVAL Chair) Nicola Muccioli of ethical breaches in a 7 November report filled with “unsubstantiated” claims.

Tensions escalated post a 4 February Brussels conference where Bulgarian MEPs warned of repercussions for San Marino’s EU bid. In response, the tribunal issued arrest warrants against Starcom’s Assen Christov and others, alleging a “parallel plan” to subvert institutions.

But on 27 February, Appellate Judge David Brunelli issued a bombshell order, annulling arrests and ordering the immediate release of suspects Andrea Del Vecchio and Marina Manduchi, while cancelling all arrest warrants.

Brunelli’s reasoning dismantles the prosecution’s hypothesis. Analyzing intercepts and evidence, he found the alleged plan – aimed at archiving proceedings, returning the €15 million, and reopening the BSM acquisition – lacked “grave indicial gravity” required for coercive measures. “The acts or hypothesized actions… showed only deplorable and reckless intentions, with emphatic tones, exaggerations, and boasts,” the judge ruled, noting no concrete implementation. Threats to investigators’ safety remained unacted upon. The plan purportedly involved media campaigns against EU association (evoking “black list” fears), lawsuits against ECF councilors, involvement of anti-Bulgarian figures, Masonic ties, and contacts with Bulgarian services or NATO exponents to intimidate judiciary and regulators. Yet, Brunelli concluded, realized actions like media efforts “do not constitute a crime,” while others stayed at the intention stage.

This ruling, published by San Marino RTV on Tuesday, vindicates Starcom’s claims of overreach. In a 6 March open letter to GiornaleSM Christov called the “parallel plan” a “construction elaborated by a group of individuals” opposing EU ties to preserve “practices incompatible with European standards.” He linked it to fascist-era penal code provisions, unreformed since Mussolini, aimed at curbing free speech. “In consolidated EU legal systems, a decision of this type would normally have been followed by institutional accountability,” Christov wrote, urging publication of judicial decisions on a public website to counter imposed secrecy.

Adding momentum, San Marino’s opposition parties held a press conference on Tuesday, pushing for urgent approval of a Project of Law (PdL) establishing an inquiry commission into the “papocchio bulgaro” (Bulgarian mess). Emanuele Santi of RETE emphasized the “non-deferrable need” for political clarity, separate from judicial proceedings, announcing a request to add the PdL to the 11 March council agenda via urgency procedure. A public event in Domagnano on 16 March aims to address citizen questions.

Nicola Renzi of RF criticized the government’s “discomposed reaction” and lack of transparency, questioning unchecked entry of controversial figures and procedural adherence in the BSM sale. Gaetano Troina of DML decried “foggy management” and secret meetings by the ruling coalition, accusing a deliberate veil over the affair. Alessandro Rossi of DEMOS labeled it a “papocchio,” slamming an unexplained amendment removing the 51% foundation ownership cap and linking it to past scandals like DES and pedophile cases.

These moves signal internal pressure for accountability, potentially easing the path to resolving Starcom’s claims. Yet, the saga’s EU implications loom large. San Marino’s 2024 association agreement (COM(2024)189) promises market access but demands alignment with EU values like rule of law (TEU Article 2). Bulgarian diplomats, per EUalive.net’s 5 February coverage, warn of delays in ratification, with Sofia potentially vetoing amid the investor dispute.

Starcom’s 25 November letter highlighted Muccioli’s dual role as a conflict, while Varengold Bank’s clarification rejected AIF smears. CoE’s Bodini dismissed intervention, but Starcom’s Bulgarian lawsuit against Muccioli persists. Opposition’s inquiry push could expose mishandlings, aiding EU scrutiny – MONEYVAL’s evaluations note San Marino’s AML progress but vulnerabilities.

As of today, these developments offer Starcom vindication, but full resolution hinges on fund release and transparency.

Caption: The flags of the EU and San Marino [Europe by Satellite]