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AmCham: Businesses facing extortion to provide contracts

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TIRANA, March 7 – The American Chamber of Commerce in Albania says it has identified cases of big businesses facing new forms of pressure such as extortion to provide service contracts in order not to have problems in the every-day running of their business.

The warning is given by Mark Crawford, the president of the American Chamber of Commerce in Albania representing hundreds of major foreign and local businesses operating in Albania.

“We still have some problems, sometimes they are specifically related to security issues, and there were cases in Fushe-Kruja and Korà§a. It’s not that every member has had problems, but there has been one or two members who had serious problems. That is an issue of concern also for new potential foreign investors,” Crawford has told a local TV.

Commenting on the method used to extort businesses, Crawford says “it’s private people who come and threaten companies, warning to block the way to the factory, threaten workers and create problems unless they get any contract.”

“That’s vandalism which means people who come and cut the company wires, block the way or threaten workers if they don’t provide contracts. We are discussing with the government, it’s not that the government is not aware of this,” he adds.

Extortion to provide contracts for the goods produced or services provided by major companies is a new form of threat businesses are facing.

Extortion racket has been the most common form that big businesses have faced from local gangs, some of whom arrested.

Companies also complain there is high level of corruption in dealing with the public administration and during tax inspections.

High taxes, unfair competition and government bureaucracy are the top three concerns facing businesses represented by the American Chamber of Commerce.

Reducing taxes, settling the long-standing property title issue, increasing transparency in public procurement, lifting reference prices in customs offices and the implementation of a judiciary reform are among the top issues facing businesses in Albania.

Albania is currently implementing a long-awaited justice reform, which has just started with the vetting of judges and prosecutors, in a bid to overhaul the highly perceived corrupt judiciary, a key barrier for Albania’s opening of accession negotiations with the European Union and current and potential new investors.

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Prof. Dr. Alaa Garad is President and Founding Partner of the Stirling Centre for Strategic Learning and Innovation, University of Stirling Innovation Park, Scotland. He is actively engaged in health tourism, higher education and organisational learning across the Western Balkans, including the Global Health Tourism Leadership Programme in Albania.

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