It’s astonishing how journalists write about something that they don’t check thoroughly. A couple of days ago an article appeared in one of the major news websites for Bulgarian news in English language. The news is totally misinterpreted. They speak about promulgated new ordinance (regulation) which changes the transport company license regime, so that re-licensing is needed by the end of the year. The same news also appeared in Bulgarian and is distributed by a Bulgarian news agency.
This brings unnecessary fears to all owners of transportation companies. I have posted about the future amendments of the said regulation. The truth is that the amendments are not yet adopted by the Ministry of Transportation. A draft has been published on the Executive Agency “Automobile Administration”. The agency now has put this to discussion among the industry members. Few has already objected some of the amendments such as The Bulgarian Association of Freight Carriers. Their main concern is the new requirement for proving financial stability i.e. presenting company annual accounts, signed by certified financial auditor. The signature of certified auditor is not required pursuant the current regulations. The association thinks that this is contradicting with the Accounting Act which stipulates which companies are obliged to present annual accounts, singed by certified financial auditor.
The Association’s fears are ungrounded. The truth is that most of the transportation companies don’t meet the financial stability requirements and this new amendment will reveal this. No certified auditor will sign accounts that are not correct. But that’s not really a problem and I don’t understand why the association is making a problem out of it. If a transportation company doesn’t possess enough capital to meet the financial stability requirements, they just can sign an insurance policy that will cover the rest of the assets that the company is short of. In that sense the new amend mends are quite favourable, we just need to wait and see how much the insurance policy will cost.