“The Albanian government will pay this private company Euro 4.5 million a year for still unclear services,” says opposition Democratic Party leader Lulzim Basha who has described the contract with Crown Agents as abusive and unacceptable
TIRANA, Nov. 4 – The Albanian government will pay UK-based Crown Agents Euro 8.5 million during the first two years of its operations in Albania where it will assist the country’s customs administration improve its performance by fighting corruption. The contract has sparked heated debate with the opposition Democratic Party which describes the deal as abusive and unnecessary.
The contract with Crown Agents foresees the UK-based company will 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 contract also foresees Crown can lose 25 percent of the amount if it is not successful in increasing customs revenue. The company will be 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.
The international consultancy firm will assist the customs administration in analyzing information, investigation, inspection and verification. The company will also report to the Finance Ministry on every case of abuse, corruption including those involving customs staff.
“This deal, which will be proposed to Parliament for approval, regulates legal and civil relations with Crown Agents Limited company which will provide assistance service on the improvement of performance, increase of revenues and reduction of corruption in the customs administration,” says the draft law approved by government.
Since the Socialists took over last September, the customs administration has unveiled several tax evasion schemes involving fuel and steel, imposing huge fines on the involved companies.
The decision to hire Crown Agents, an international development company that partners with governments by providing consultancy, comes after the Albanian government recently hired accountancy giant Deloitte to audit unpaid bills and arrears the central government owes to the business community.
Speaking this week in a meeting with the Socialist Party MPs, Prime Minister Edi Rama said he was convinced the performance of the customs administration would significantly improve under Crown Agents assistance.
“I am very hopeful the inclusion of Crown Agents in the supervision of customs points and the increase of human capital in the customs system and the new entries from a competition for 150 tax inspectors will bring a considerable increase in the quality of service either in customs or state administration,” said Rama.
The British embassy in Albania also described accusations against Crown Agents as fake and unfounded, saying that the company is highly respected in the UK.
Opposition
Opposition Democratic Party leader Lulzim Basha has described the contract with Crown Agents as abusive and unacceptable.
“The Albanian government will pay this private company Euro 4.5 million a year for still unclear services. The state budget will be stripped of Euro 400,000 only to buy luxury cars for the agency in case,” said Basha.
Describing the contract with Crown Agent as state capture par excellence, Basha denounced government decision to strip the company of every tax during its operations in Albania and the accelerated passage procedures it has launched on the deal.
Former deputy Finance Minister Alfred Rushaj said the exclusion of Crow Agents from al taxes was unprecedented and put Albania in a difficult position with other foreign companies which have invested billions of dollars. Rushaj said the European Union had told government officials the contract was expensive and that the company does not have the necessary experience in customs and tax administration. “The World Bank has banned this company for six months because of abusive practices in World Bank projects,” said Rushaj.
