Administrative court risks Albania’s future in Millennium Challenge

TIRANA, May 6 – Failure to establish the Administrative Court risks depriving Albania from befitting funds from the Millennium Challenge Corporation (MCC). The warning was given by USAID Mission Director Joseph Williams during a meeting with the members of the American Chamber of Commerce.
USAID director said that delays in approving the law on the establishment of the Administrative Court would put to risk the fulfilment of goals under the current agreement and negatively influence on Albania’s opportunities to receive further financial assistance.
Albania’s business community has long supported the creation of administrative courts, which they see as a means to protect the rights and legal interests of all citizens, but the initiative has been blocked because of the ongoing political crisis. The court’s establishment would require a qualified majority of 84 votes, and needs the votes of the opposition Socialist Party.
Williams said USAID saw the establishment of the administrative court as a step toward the reduction of disagreements between government and business. He warned that Albania would have to show its performance in establishing necessary structures and its ability to qualify for the next program in order to benefit additional funds from the American government.
The second stage of the MCC Albania Threshold Program (MCCA2), begun in January 2009, is a two-year, $15.7 million agreement between Albania and the United States, funded by the Millennium Challenge Corporation (MCC), and administered by USAID, which aims to strengthen the rule of law, reduce corruption and increase public oversight, thereby improving the business environment in Albania through IT solutions and technical assistance.
The MCC Albania Threshold Program II builds upon the successes achieved during stage I of the MCC Albania Threshold Program, which included the establishment of the National Registration Center and the Procurement Advocate office, the enactment of the new tax procedure law, as well as the introduction of three major e-government services: e-registration, e-procurement, and e-filing.
MCCA2’s first year of implementation has seen remarkable progress in several areas including the establishment of the new National Licensing Center less than five months after program’s inception, the Millennium Challenge Corporation said on its website.
MCCA2 interventions in support of tax reform in Albania have led to the introduction of a national risk-based audit system that removes tax inspectors’ ability to improperly target businesses for audit, the creation of an Investigation Directorate (which pursues criminal tax-related cases) and an Internal Investigation Directorate (which focuses on internal corruption), and the automation of the remaining regional tax administration offices.
The Millennium Challenge Corporation aims at helping developing countries, based on the principle that aid is most effective when it reinforces good governance, economic freedom and investments in people, thus bringing about the reduction of poverty through economic growth.