Two lawsuits were filed Tuesday against Hristo Lachev, the executive director of the Bulgarian cigarette maker Bulgartabac, reports Bulgarian news agency Novinite.

Roman Vasilev, a deputy prosecutor, told Bulgarian radio that the suits were for income misrepresentation, and for misappropriation. The suits are brought against the office of the executive director, but the prosecutor explained that if Lachev is personally charged, the prosecution might demand his dismissal from the management of the state-owned cigarette company.
Lachev said in an interview that he was not worried about the inspections of his activity initiated by the prosecution. He commented on the allegations that Bulgartabac funds had been drained through signing contracts with five "fly-by-night" companies, and that the cigarette holding had made advertising contracts in countries to which it does not export its products such as Italy.
"None of the firms with which I have signed contracts is a 'fly-by-night' firm because Bulgartabac's procedure is complex enough to prevent such deals. We do export cigarettes to Italy, and our advertising budget is well balanced", Lachev stated.
He also said the tobacco holding was in a bad situation with regard to its upcoming privatisation and restructuring, and that the current inspection by the prosecution infringed on the image of the company both at home and abroad. (pi)