PRESS RELEASE
16 July 2024
THE ESTABLISHED INCOMPATIBILITY OF MR. GUROV IN HIS CAPACITY AS DEPUTY
GOVERNOR AND MEMBER OF THE GOVERNING COUNCIL OF THE BNB MUST GO THROUGH
THE LEGAL MECHANISMS FOR JUDICIAL CONTROL AND PARLIAMENTARY REVIEW
Today, 16 July 2024, the Governing Council of the Bulgarian National Bank (BNB) has made a decision regarding the legal consequences of the incompatibility established by the Anti-Corruption Commission of Andrey Gurov in his capacity as Deputy Governor, Head of the Issue Department and member of the Governing Council of the BNB.
In order to make its decision, the Governing Council of the BNB took note of:
- the legal framework regarding the procedure for early relief of a member of the Governing Council, with the exception of the Governor, which is in accordance with the requirements of directly applicable European law, also confirmed in the European Central Bank’s Convergence Report published in June this year;
- the rules of administrative law, according to which the BNB Governing Council does not assess in substance the act adopted by the Anti-Corruption Commission, whose competence is to establish incompatibility, but only considers this act in the context of the principles and rules of central banking;
- the legal uncertainty about the conditions of this precedent for the Bulgarian and European legal framework and practice, which creates risks for the central bank’s independence and reputation; and
- the possibility of politicizing this legal case in the complex political environment in the country.
As a result of the discussion, the Governing Council of the BNB issued its decision based on the relevant legal and factual grounds stated therein, but it also came to the conclusion that the various aspects and legal interpretations of the thus established incompatibility of Mr. Gurov must go through the legal mechanisms for judicial control and parliamentary review with a view to the final resolution of the case.
Judicial control is carried out in accordance with Art. 14, para. 2 of the Law on the BNB, which provides for a ruling by the Supreme Administrative Court in the event of an appeal against a decision of the BNB Governing Council regarding the establishment of grounds for early dismissal from office of a member of the BNB Governing Council.
Parliamentary review is carried out in accordance with Art. 14, para. 2 of the Law on the BNB in connection with Art. 12 of the Law on the BNB insofar as the National Assembly of the Republic of Bulgaria is the only competent body that can early relieve a member of the Governing Council of the BNB, taking into account the decision of the Governing Council of the BNB or, in cases where it is appealed, the decision of the court.
The judgment of the court and the Parliament is reached after an administrative act of the BNB Governing Council pursuant to Art. 14, para. 2 of the Law on the BNB to establish grounds for the early relief of Mr. Gurov, with the ruling that, by virtue of the law, he ceases to exercise his powers as Deputy Governor and member of the BNB Governing Council until the matter is finally resolved.
In the event that Mr. Gurov appeals today's decision of the BNB Governing Council, the Supreme Administrative Court should rule within two weeks. In the event of a court decision annulling the decision of the BNB Governing Council, Mr. Gurov will continue to fulfill his mandate at the BNB. In the event that the court confirms the act issued by the BNB Governing Council, it will be submitted to the National Assembly of the Republic of Bulgaria for a final decision.
The Law on the BNB provides for a short period for the court to issue a ruling in order to ensure the central bank’s integrity and independence and prevent a situation in which its governing body are functioning with an incomplete composition for a longer period of time. The Court may consider it necessary to refer to the Court of Justice of the European Union if it considers its interpretation of the case to be necessary.
The Bulgarian National Bank remains ready to take all subsequent actions in accordance with the decisions of the court and the Parliament.
When making the decision, the BNB Governing Council took into account the written opinion submitted by Mr. Gurov, as well as what he presented at his hearing.
Andrey Gurov did not participate in the voting. The decision was unanimously adopted by the remaining six members of the BNB Governing Council.
