Former minister sued over cancelled rail deal with General Electric

TIRANA, May 17 – The Albanian Transport ministry has sued a former Socialist Party minister for abuse of power over a cancelled rail deal with U.S. giant General Electric which has cost the Albanian state a 12 million euro fine.
A ministry statement says Spartak Poci failed to get parliamentary approval for the 75 million euro (92 million USD) contract to rebuild a 38-kilometre (28-mile) stretch of rail from Durres to the capital, Tirana. The deal also included a new link between Tirana and its airport.
The governing Democrats cancelled the agreement soon after coming to power in 2005, saying the country couldn’t afford it. General Electric went to the International Court of Arbitration in Rome, and won 12 million euros ($14.8 million) in compensation.
Poci, a Socialist, faces a maximum 7-year sentence if found guilty. The lawsuit was announced Monday.
The ministry says the alleged offence by former Socialist Party minister Poci has cost the Albanian state 12 million euros, a bill which is increasing every day because of interest rates.
Poci’s failure to appear before the Arbitration court to make the necessary explanations influenced on the decision, said the ministry.
The Transport Ministry has called on the Prosecutor’ office to investigate into this crime which it says unfairly punishes the Albanians’ budget and damages the state’s economic interests.
“Mr’s Poci procedural announcement of December 3, 2003 requesting the immediate proceeding of part of the contract in violation of the legal framework in force in the Republic of Albania, respectively in the absence of consent (ratification) in parliament of the loan agreement, a component part of this agreement, served as proof in favour of General Electric Transportation System, Athena (Iliria Consortium) against the Albanian State in this trial,” said a statement by the ministry.