Bulgaria's Health Minister Bozhidar Nanev resigned on Tuesday after prosecutors charged him with graft in connection to drug contracts.

"The charges against me are absolutely groundless," the minister said in a statement.

Prosecutors said Nanev caused 2.45 million levs ($1.67 million) of damage by signing two contracts last December with Swiss drugmaker Roche Holding AG for the delivery of the influenza drug Tamiflu. They initially talked about vaccines and drugs but later said the deals concerned only Tamiflu.

Nanev was the first minister to be formally accused of corruption in the Balkan country since communism collapsed 20 years ago. He faces up to 10 years in jail if found guilty.