TIRANA, Jan. 27 – The Albanian government has made it clear will not renew its contract with UK-based Crown Agents consultant whose performance in Albania has been criticized because of failing to increase customs income but the company is expected to continue its Albania operations even this year.
Finance Minister Shkelqim Cani indicated the company will continue its assistance to Albanian customs administration even this year after its initial 2-year contract expires next February and will leave Albania next year.
“Crown Agents role has been helpful and we appreciate it, but it is no secret the cooperation will no longer continue next year,” Cani told Ora News TV in an interview.
Under a deal signed in late 2013, the Albanian government agreed to pay UK-based Crown Agents Euro 8.5 million during the first two years of its operation in Albania to assist the country’s customs administration improve its performance by fighting corruption.
The contract with Crown Agents which entered into force in February 2014 envisaged the UK-based company would be paid Euro 4.25 million per year, a total of Euro 8.5 million in the first two years, with an option of renewal for a third year.
The company was stripped of all taxes during its operation in Albania, including profit tax, personal income tax for its experts, VAT, and social security and health insurance, which sparked fierce reaction by the opposition.
Finance minister Cani said smuggling and tax evasion remains a problem in the customs administration, especially with the drastic cut in cigarette imports.
In an annual conference this week, the customs administration blamed its poor performance on the sharp cut in international oil prices affecting oil production and exports, a decline in imported electricity because of the favorable situation in the domestic hydro-dependent power generation and a drop in imported agriculture products due to increased domestic production.
