Bulgarian Hospital Food Procurement Under Inquiry for Cartel Activity
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Sofia, Bulgaria – On January 4, 2026, teams from the Commission for the Protection of Competition (CPC) and the police conducted raids on the offices of companies supplying food to public hospitals in Sofia. The investigation centers on allegations of cartel activity and anti-competitive practices in public procurement processes [1].
Investigation Triggered by MP Report
the proceedings were initiated following a report submitted on october 2, 2025, by Vasil Pandov, a Member of parliament from the PP-DB coalition. Pandov’s report raised concerns about coordinated actions between three companies – “Master Pick,” “Balkan Meal,” and “Party Food” – during auctions for hospital food supply contracts. The report alleges that these companies collectively secured approximately BGN 9 million in contracts from state hospitals over the past year, with “Master-Pick” receiving BGN 5 million [1].
Allegations of Bid Rigging and Market Allocation
The CPC’s preliminary findings suggest evidence of tender manipulation and market allocation, a classic form of prohibited agreement. This involves pre-determining which company would win specific tenders, effectively eliminating fair competition.Investigators also uncovered indications of “cover tenders,” where companies formally participate in bids to create the illusion of competition without genuine intent to win. Winning bids were allegedly secured through direct negotiation and exclusive invitations sent to the three companies under investigation.
During the raids, CPC officers seized documents and digital data using forensic techniques to recover and analyze data. The collected evidence will be used to build a case and inform the CPC’s decision-making process.
Companies Under Scrutiny
All three companies have been long-term players in the public food supply sector. While publicly available records do not indicate direct ownership connections between them, scrutiny is focused on their bidding patterns and contract awards.
Master-Pick
Owned by Kolyo Kolev,Master-Pick holds a BGN 1.4 million contract with Pirogov Emergency Hospital. The company has also secured contracts for hospitals in Lovech, Montana, and Troyan.Notably, in 2022, Master-Pick won eight government contracts, valued at BGN 3,478,000 (excluding VAT), to supply food packages for Ukrainian refugees receiving temporary protection in Bulgaria.
Balkan Meal
Registered in Lakatnik and owned by Iliyan Mladenov, Balkan Meal has contracts with ISUL (Sofia Regional Health Inspectorate), Transport Hospital, the municipal Peta Gradska hospital, and previously with Sveta Anna hospital. The company has also supplied food for the rhythmic gymnastics federation and kindergartens in the municipality of Svoge.
Party Food
Owned by Veselin Cholakov and Nikolay Raichev, Party Food supplies four hospitals in sofia: Prof. Ivan Mitev (children’s hospital), Acad. Ivan Penchev (endocrinology), Alexandrovska Hospital, and the oncological hospital. Reports indicate a past connection between veselin Cholakov and Alexander manolev, a former Deputy Minister of Economics who has been sanctioned by the United States [1].
Hospital Food Quality and Costs
The price of a single meal in Bulgarian state hospitals ranges from BGN 5 to 11 (excluding VAT), encompassing breakfast, lunch, and dinner.Typical menu items include pastries, soups, stews, and basic staples. The investigation highlights concerns that anti-competitive practices may negatively impact food quality and patient rights.
Bulgaria’s Anti-Corruption Efforts
This investigation is part of a broader effort to combat corruption in Bulgaria, supported by increased cooperation with the European Union. Recent reforms, including amendments to the constitution in 2015 strengthening the Supreme Judicial Council and judicial inspectorate [2], aim to improve openness and accountability.The OECD is also actively involved in reforming Bulgaria’s anti-corruption authorities and asset forfeiture systems [3].
The outcome of this investigation is expected to shed light on the extent of cartel activity in the public procurement of hospital food and contribute to ongoing efforts to strengthen anti-corruption measures in Bulgaria.