Reuters report on the anticorruption draftlaw debacle

Bulgarian parliament rejects plan to set up anti-corruption unit

* Bulgaria, Romania kept outside EU's Schengen travel zone* Graft-fighting plan designed to emulate Romania
* Corruption has deterred investment in Balkans


SOFIA, Sept 3 (Reuters) - A Bulgarian government plan to form a special unit to investigate high-level corruption failed to win parliamentary approval on Thursday, increasing concern about the country's professed commitment to fighting the scourge.
The European Commission, the EU's executive, has repeatedly criticised Bulgaria for failing to prosecute and sentence corrupt officials and for poor progress in overhauling its inefficient judiciary since joining the bloc in 2007.
Graft has deterred foreign investment since communism collapsed in Bulgaria in 1989, and the EU has kept Sofia as well as neighbouring Romania outside its Schengen zone of passport-free travel.
The government's bill was approved by 101 lawmakers from the ruling centre-right GERB party and the Reformist Bloc, its closest ally, but 38 MPs voted against and 72 abstained citing a lack of clarity in the draft.
"Bulgaria has a very bad reputation and everybody expects some real actions," Daniel Smilov, a political analyst at the Centre for Liberal Strategies, told Reuters.
"This (parliamentary vote) is a very negative signal, indicating the lack of political will to tackle corruption."
Judicial reform was promised by Prime Minister Boiko Borisov when he returned to power after a snap election in October. But two of his allies - the nationalist Patriotic Front and centre-left ABV party, abstained from Thursday's parliamentary vote.
The anti-graft bill, which was rejected at first reading, can again be presented in three months' time at the earliest.
"Corruption is a very serious problem in Bulgaria and surgery is needed to deal with it," said Deputy Prime Minister Meglena Kuneva, the initiator of the special agency plan. "But obviously, some lawmakers were afraid of adoption."
The anti-graft bureau was due to become operational by the start of 2016, and top posts, including the president, prime minister and lawmakers could be targets of investigation. Municipal councillors, directors of hospitals, and border customs bosses could also fall under the unit's radar.
Kuneva has said Bulgaria wants to emulate the anti-graft crackdown of Romania, where senior politicians including ex-premier Adrian Nastase have been jailed. (Reporting by Angel Krasimirov; Writing by Radu Marinas; Editing by Mark Heinrich)