Embassy Tirana Weekly Report

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SIPDIS

STATE FOR EUR/SCE

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SUBJECT: Embassy Tirana Weekly Report

It's Not What You Know. . .
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1. The Financial Crimes Task Force of the Tirana Prosecutor's
Office has concluded the investigation of a major property related
fraud case that involved the illicit transfer of land titles to a
major Albanian builder. The list of those charged includes the Head
of Property Restitution Commission, a number of district restitution
commission employees, the construction businessman Alban Xhillari
and his lawyer. In addition to forged documentation, prosecutors
say that they have also collected incriminating wiretaps that shed
light into a major corruption scheme. According to the Prosecutor's
office, Alban Xhillari orchestrated the restitution to an Albanian
family of 135 acres of prime coastal land that it had never owned or
made claim to. The family reported Xhillari to prosecutors after
discovering that Xhillari's representatives had illegally shifted
the location of their land by several miles. Xhillari has denied
all charges and says that he was never involved in the deal.
Several property restitution officials have been placed under house
arrest and charged with fraud. Attempts by the case prosecutor to
put Mr. Xhillari under arrest were derailed by the Tirana District
Prosecutor. On February 12, 2008, the Tirana Court, set bail for
Xhillari at 100 thousand USD, which he immediately agreed to pay.


2. This case marks the first major investigation into fraudulent
practices in the property restitution process in Albania. According
to Albania law, former owners of property confiscated by the
Communist government are entitled to full restitution of those
properties when available, and compensation at market price for
property that cannot be reclaimed. The process, however, is marked
by major hurdles and plagued by corruption and criminal
interference. Thousands of property claims remain outstanding and
the restitution offices are poorly staffed and equipped,a
niainthatthe authorities have a vested interest in the
current state of the restitution process. The case under
investigation best illustrates a standard precedent in the
restitution process, i.e. only toe with power or money can work
th system and get their property back. This case may also
hopefully prove that justice - even for the well-connected - may be
served.


Spend, Spend, and Spend Some More. . .
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3. On February 10, Minister of Finance Bode reacted to recent IMF
concerns over the larger-than-expected negative impact of the global
crisis on the Albanian economy in 2009. Bode disagreed with the
IMF's pessimistic forecast for 2009 and instead expressed his
confidence that the domestic economy will avoid serious fallout from
the global crisis and will continue to show a fairly decent growth
rate. Bode also disclosed the GOA's anti-crisis plan, which
consists mainly of boosting public spending and launching of new
public financed projects. He said that the MOF will sign next week
a $420 million commercial loan agreement with a foreign bank. In
addition to raising additional funding, the GOA decision aims to
protect the domestic financial market, allowing domestic banks to
maintain a good level of liquidity in order to finance private
projects in Albania.


4. The GOA is also moving forward with privatization as a way to
improve performance efficiency, attract foreign investors and
collect cash for public spending. For the first six months of 2009,
it is planning to sell almost 240 million USD worth of state-owned
assets. The government just announced the sale of 12.6 percent of
mobile operator AMC for USD 65 million, and is planning to sell its
24 percent stake in the state landline company. Two other major
privatizations, the Insurance Company and the Electricity
Distribution Operator are also nearly complete. On top of that,
another $150 million from the sale of ARMO should already be in the
treasury. Overall, the GOA is killing two birds with one stone,
both mobilizing for the crisis but more importantly (from the
government's view) building an election war chest.


Made in Albania, Back to Albania
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5. Two of Albania's key national soccer team players, Lorik Cana
(playing currently for France's Olympique de Marseille) and Igli
Tare (playing currently for Italy's Lazio) paid an Italian collector
20,000 Euros in order to bring back to Albania the bust of the Greek
god of medicine Asclepius. The head was stolen from the
amphitheater of Butrint (in southern Albania) in April 1991. Player
Tare said he heard about the sale by Christie's of the bust and
traced it to an Italian buyer.


6. Approximately 2600 years old, the bust belongs to the statue of
Asclepius, carved in white marble with green veins, and part of the
chapel of Butrint. Known Italian archeologist Ugolini was the first

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to discover the bust, but the statue was never found. Researchers
are split over whether the bust belongs to Asclepius or to Zeus.
Therefore, it is usually referred to as Asclepius/Zeus.


7. The players said they were happy to hear President Topi will
receive the bust when they bring it to Tirana, a full 18 years after
it first went missing.


Quote of the Week
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8. "When the prosecutor's office becomes an instrument of politics,
this becomes not only shameful but dangerous as well." Excerpts
from a speech by former Minister of Defense Fatmir Mediu following
his indictment in connection with the tragic Gerdec explosion.