Albanian legal experts have contradicted the stance of Prime Minister Edi Rama who argued the state must continue paying the companies involved in the controversial incinerator scandal, despite the fact, its owners are wanted for corruption.
During his last address to the nation in 2021, Rama said the government would continue to implement the legal contract, regardless of the fact the beneficiaries are under investigation for active corruption and money laundering.
Rama told BIRN, “they are contractual relations imposed by law to continue until there are final decisions by the courts. These are contractual relations that must be implemented until justice speaks.”
On 14 December, ex-energy minister Lefter Koka was arrested by a special prosecution to detect high-level corruption, SPAK. At the same time, Stela Gugallja, owner of the company Albtek Energy, and Klodian Zoto, owner of ITS, were declared wanted.
They are the beneficiaries of concessions that were awarded without demand, need, or solicitation, and they and their companies have no experience in the sector of waste management or incineration. The contracts awarded are for incinerators in Tirana, Elbasan and Fier.
The contracts significantly favour the companies involved as they see the state paying millions for every day the incinerators are not built or do not burn waste. This has incentivised the companies to delay the construction of the sites for almost six years while they pocked millions in taxpayers funds.
Former state lawyer Ledina Mandia told BIRN that there are cases where it is correct, and legally sound to terminate a contract when it has been won and managed in a corrupt manner. Economics expert Zef Preci agreed, adding “an illegally won contract has no court in the world that protects it.”
Mandia said the situation is very serious because millions of euros of Albanian’s money are going into the pockets of unknown individuals. She suggested the government should consult with lawyers specialising in arbitration, to terminate the contract.
“The government, the day after the announcement by SPAK, should have set up a large working group to evaluate the documentation, contracts, and find opportunities to terminate contracts so that there are no financial consequences for the Republic of Albania,” he told she BIRN.
“The lack of reaction of state agencies should be seen as their lack of will to respect the law, minimally suspend further transactions and take control of these assets,” added Preçi.
The ruling Socialist Party has been against the inquiry into the deal since the start. Furthermore, the banks who hold accounts for the beneficiaries of the concessions have refused to hand over data to the parliamentary committee probing the affair.
Albanian Banks Refuse to Hand Over Data in Incinerator Corruption Probe
