The mayors of Belitsa and Sungurlare, Radoslav Revanski and Dimitar Gavazov, will stay in custody, the Burgas Regional Court ruled. They are charged with criminal conspiracy and influence peddling.
Earlier today, Gavazov's supporters held a silent protest outside the Palace of Justice while the court decided whether he would stay in detention. Prosecutors had asked for both men to be held permanently.
Read more: Silent protest in Burgas backs detained Sungurlare mayor
Investigators are looking at Sungurlare council contracts worth about €7m. Supervising prosecutor Miroslav Iliev said they cover street building and repairs to public buildings. Contracts of Belitsa council are not part of the case.
Prosecutors say the accused divided up the roles. They say Hristo Shirokov, the regional leader of the DPS party, who is also charged, found the firms. Revanski helped arrange the funding, and Gavazov influenced the council committee that picks the contractor. Shirokov is under house arrest in another case.
Iliev said the winner of a contract had to pay between 25% and 35% of its value. A financial audit and expert reports will show how much money was actually paid and whether the budget lost out.
"Don't play with political peace! You are playing with fire!" Revanski said as he entered the courtroom.
Residents of Belitsa and Sungurlare gathered outside the court to back the mayors. Police stepped up their presence and put a cordon across the rear entrance, where the detainees were expected to be led out. After the ruling, people chanted "Mitko! Radi! Mitko! Radi!".
Revanski's supporters from Belitsa said members of their ethnic group would not vote in the coming presidential election. Gavazov's relatives reject the charges. His sister believes they were fabricated so that both mayors could be held.
The DPS will report the head of the Customs Agency, Nikolay Shushkov, to prosecutors. The party claims he pressed Revanski to join "Progressive Bulgaria" in return for political protection. It wants prosecutors to check whether this is linked to the arrest.
The chief expert for "Operational programmes and projects" at Sungurlare council says he was pressured as a witness. He denies there were any violations in the contracts.