Arms exports from Bulgaria amount to over 2 billion and 167 million euros per year, according to the latest reported and analyzed data from 2023.
Against the backdrop of this surge in revenues from the production of military equipment in the wake of the war with Ukraine, one of our state-owned factories in the industry is barely making ends meet and has not been able to pay its workers' salaries for the third month in a row - the military repair "Terem- Khan Krum Targovishte". The employees are protesting.
140 people are on the verge of survival, and the delay in their already low salaries has been repeated for years. What is wrong with this factory? Marin Nikolov is looking for the answer.
„This factory "It won't be. This way, the way things are loading, things will end. We only received salaries for December. We don't have any for January and February. And there won't be any. Right now they are saying the same thing as 4 months ago," commented Ivan Radev, an employee at "Terem-Khan Krum".
"There is no work, there are no contracts, there is no money. It doesn't depend on them. We finish what is asked of us. Nothing is visible from their work", he also points out.
For decades, one of the 5 factories of the state-owned "Terem-Khan Krum" in Targovishte has existed to repair tanks and armored vehicles for our army – mainly Soviet vehicles - T-72, MTELB, BMP-1.
Established during socialism and to this day, the plant is under the control of the Ministry of Defense and relies on the army as its main customer.
And that's exactly where the problem lies, says trade unionist Krasimir Stoichkov - chief engineer, and previously a designer at the plant.
“The army is now about 4-5 times smaller than it was back then, when funds were allocated for the army and for repair plants. The equipment is also, if it decreases 4-5 times, then by the most rough calculations - 5 times 5 - 25 times, the capabilities of the army have decreased, in terms of the number of people and equipment“, points out Krasimir Stoichkov from the Federation of Independent Trade Unions in Defense – „Bulgarian Army“.
The smaller army gives smaller orders and the money in the factory is not enough. Although in the years of our transition and the number of workers in Targovishte has decreased even more drastically - from 5600 to 140 people.
„Our factory is only reducing 40 times. The main part is at 1100-1200 leva - basic monthly salary. They are additionally charged there in class, years of service. With 1100-1200 leva a person lives hard. Young people can be counted on the fingers - let's not have it on one, but on both hands“, points out Krasimir Stoichkov.
The state orders to „Terem - Khan Krum this year there are no, and last year there were two - said the Minister of Defense Atanas Zapryanov in the parliament. They are for the repair of several T-72 tanks for the National Military University and the repair of a “Tatra“ truck. A delay in the implementation schedule has also led to a delay in the payment of the orders, the minister also said.
According to the workers, however, the money ordered could not cover the funds for salaries.
“They are not enough, because they cost about 900 thousand leva for the four machines“, says Krasimir Stoichkov.
In order to exist “Terem - Khan Krum“ must also seek orders from private companies. However, they do not bring in enough revenue, say the employees.
And they wonder why private companies can make a profit, but their plant - not. Why aren't the bills coming in?
In response, the Ministry of Defense refers us to Kalin Dimitrov - the head of “Terem Holding“ - the parent company of the factories. It has been lending to the troubled enterprise for years. And he announces that he has requested the resignation of the manager of “Khan Krum”.
“Why are you involving the Ministry of Defense in the whole story? I can't understand why accusations and demands are being made all the time to the Minister of Defense? In order to receive orders, we have to apply according to the general procedure, through a tender procedure. This is part of the processes that are about to be optimized. Let's see why we are not competitive and think about how to become competitive. I requested the director's resignation and he submitted it. The manager, Mr. Karaivanov, is leaving“, commented Kalin Dimitrov, executive director of "Terem Holding".
„Someone will be sought to solve the problems. There will be solutions as soon as possible“, he pointed out.
However, solutions to the salary problem in „Terem“-Targovishte have been sought not from now, not from yesterday, but for over 20 years. The former Minister of Defense and current lawyer Nikolay Svinarov remembers the time until the distant year 2003.
“There were protests and 25 years ago it was the same. People who have to work to get a salary, in fact their workload is not enough to pay even half of the workers. The easiest thing for the Minister of Defense to do to get rid of him was, we will increase your salaries by 10% and keep quiet for at least 2 years“, commented Nikolay Svinarov, Minister of Defense from 2001 to 2005.
“Of course, this does not solve any problem. Yes, and here we come to the fact that “Terem-Khan Krum“-Targovishte is indeed a commercial company. It must find the mechanism and, as management, make more efforts to ensure production for its workers“, he also pointed out.
We return to 2010 to see protests by workers here again for unpaid salaries of over 1 million and 800 thousand leva. Their remuneration was again at the minimum then.
“Whoever can live on these 240 leva, let them come here and prove themselves“, says Krasimira Dimitrova from “Personal Staff”.
“We are asked to work, we want money, but there is none. Here, we made 50 tanks here a month ago, I took 6 leva per tank, one pack of cigarettes per tank”, points out Dimo Dimov – worker.
According to the then director of the "Terem" holding; Stancho Petkov, his subordinate manager of "Khan Krum" refused to terminate a contract with an external security company and accumulated a debt of 140 thousand leva.
Then again, the enterprise accumulated mysterious electricity bills. In one month - 75 thousand leva, as according to documents, note - the plant did not work.
There have been suspicions of unjustified expenses in the "Terem" enterprises many times over the past 20 years.
Several of their bosses have become the subject of high-profile prosecutorial investigations and lawsuits. And an audit report to the Ministry of Defense on the management of "Terem Holding" in 2021 describes expenses made without proven necessity.
Among them is an order for the supply and installation of a video surveillance and control system in the Holding's building, in the presence of an existing one, the auditors write. In violation of the requirements, the order was divided into 4 contracts for 10,000 leva each to the same company. And it was paid before it was executed, without providing penalties for non-performance, the report says.
Doubts were expressed about unnecessary repairs with unjustified costs of tens of thousands of leva. And finally, "Terem Holding" reported an unrealistically high financial result for 2021, the auditors write.
According to the conclusion, one of the ways to do this is to increase the values of properties and assets that did not bring benefits. And the higher the financial results "Terem" produces, the higher the salaries of the directors there.
The aforementioned report concerns the management of Colonel from the reserve Krastyu Krastev, who was replaced in the management position at "Terem Holding" in 2023.
Following a parliamentary question, the then Minister of Defense Dimitar Stoyanov announced his annual salary for 2022 - 131,000 leva. We sought comment from the former director, Colonel Krastyu Krastev, who said he would call us after we contacted him, but a call and interview never followed.
The audit report on violations was submitted to the prosecutor's office after it was prepared, but they did not see any crimes and refused to investigate. Why, however, over the years, "Terem" has repeatedly been in the news for financial abuses? We ask the current director of the holding, Kalin Dimitrov.
„To be honest, when I took over this holding, I swore internally that I would not allow such doubts, corrupt practices, as long as I am the executive director, to arise," he pointed out.
Dimitrov deflects the answer to the question of what his salary is.
„We do not write our salaries. There is a law. I can tell you that there are EODs at the moment, state-owned, where the salaries are significantly higher than the salary of the executive director of "Terem Holding", he said.
Of all 5 "Terem" factories, only the one in Targovishte has problems, says Dimitrov. However, workers claim that there is a lack of far-sighted state policy. And they remember the last stable period with profits at "Khan Krum" -
„Back in time - 2018-2020, we had 18 machines for major repairs and then another 40 for modernization“, points out trade unionist Krasimir Stoichkov.
The former Minister of Defense at that time was Krasimir Karakachanov. Now he tells us that in addition to orders from the army, the state then arranged for the repair of 40 tanks to a private Israeli company before reselling them. Karakachanov also raises another question:
„Bulgaria gave about a hundred armored personnel carriers to Ukraine. There is a lot of talk that several dozen T-72 tanks were given to Ukraine. All of this, before going to Ukraine, could have been repaired in Bulgaria. And with the money that was allocated from the funds for Ukraine. That is, to go fit to Ukraine, and not to be repaired in Poland, Romania or somewhere else. That is, we give a piece of equipment, someone else collects some money - they earn from the repair and renewal of this equipment“, commented the former Minister of Defense.
And the answer of the then acting Minister Todor Tagarev:
„We discussed it, it was about 118 armored vehicles - they were unused for 30 years, they were provided as aid to Ukraine. It's just that the deadlines in which “Terem“ is working, the requirements for these machines did not satisfy the Ukrainian side in all likelihood, and it preferred to receive them in the form in which they are and modernize them on the spot according to what they learned during the fighting, such as requirements for much greater speed and at a lower price“, he commented.
Tagarev is more skeptical about the capabilities of “Terem Khan Krum“.
However, to repair products other than old Soviet equipment, you need qualifications, a direct and strong management hand of a director who is not a political appointee – former ministers Svinarov, Karakachanov and Tagarev are unanimous.
And the workers at “Terem Khan Krum“ believe in their ability to keep up with the new needs of the market.
When asked if they receive assurance from anywhere that there is a long-term solution?
Trade unionist Krasimir Stoichkov answers “This is the big problem. I don't know how we will solve it. And let me say it again - every problem has a solution, it depends on the will.
The Ministry of Defense promised to announce specific recovery actions soon.
“We have the leverage to set tasks for the plant and pay for these tasks“, commented Gen. Atanas Zapryanov, Minister of Defense.
While waiting for their salaries, 140 workers are still hoping for a future.