EU throws support behind administrative court system and business consultation, but with no end in sight to the opposition’s boycott of parliament, draft law remains frozen.
TIRANA, Nov. 23 – Getting administrative courts to start functioning is one of the most pressing issues for Albania’s business community. But the draft law that makes it possible has fallen victim to the current political impasse.
The EU gave its backing last week for moving things along, citing the administrative court system as one of the most important things that need happen to improve the business climate in the country, according to comments made by EU’s top official in Albania.
The administrative courts, which make it easier for companies to solve disputes with the government when it comes to taxes and other issues, were supposed to be approved through a law before the summer elections. But approval was delayed.
The new draft law is now ready to go, and the ruling parties say they’ll vote for it, but the opposition must vote on it too before it can pass.
And with Albania’s Socialist Party continuing to boycott the parliament, the draft law has become frozen, together with all other legislation that requires a certain number of votes to pass.
The passage of the bill would pave the way for the establishment of the administrative courts system, an institution which Albanian businesses have been demanding for six years.
The non existence of administrative courts leads to higher costs of doing business, Ambassador Helmuth Lohan, the head of the European Commission Delegation to Albania, said last week at a conference in Tirana.
“The government is ready to adopt the required legislation; however, this requires a qualified majority in Parliament – which can not be obtained as long as the elected Socialist Party members do not take up their seats in Parliament,” he added.
Another point of contention mentioned by Mr. Lohan at the Regional Conference on Business Environment Reform in South East Europe was the proper functioning of government consultations with business groups.
“The habit of consulting stakeholders during the preparation of draft legislation, or the lack of doing so” is an issue, he said. “When consulted, businesses will often make points that are in their own – sometimes narrow – interest. Consultations may therefore be cumbersome, but they do create understanding and trust, and more often than not they will help make better laws that can be implemented and enforced.”
As part of its efforts to consult with the government on administrative courts, Albania’s business community has intensified in the past few weeks its activities to achieve its goal of establishing administrative courts as soon as possible.
Businesses say they need a fair and impartial court where businesses can take their grievances. They also have the support of the representatives of civil society, the administration and ordinary individuals who see an opportunity in the law to seek their rights.
The idea is that creating a modern court system will enable the effective and fair treatment of disputes by specialized judges for issues between individuals or organizations and central and local public institutions. Administrative differences to be dealt with in the system would include taxation, business registration, licensing or procurement, and disputes related to employment, pensions and property registration.
The administrative court draft law includes a series of important reforms that will significantly improve and modernize the way administrative issues are handled by the Albanian system of justice, according to its supporters in the business community.
The draft law provides equal positions between the state and its citizens in disputes over administrative issues, ending the supremacy of public institutions in courts when it comes to administrative cases.
During the trial of a dispute between a public institution and an individual, the bill requires that the public institution must prove the legality of administrative acts that violated the individual’s rights. If a designated public institution does not support the facts required by the court, the administrative court imposes a fine against the head of the public institution in question. Such a move contributes to guaranteeing the rights of all citizens.
The draft law also revolutionizes procedures for adjudicating administrative matters and the implementation of court decisions. The bill shortens deadlines, simplifies and reduces the procedures for administrative adjudication of disputes through appropriate deadlines for filing the lawsuit at the administrative court. These deadlines also take into consideration the circumstances of the suit filer. For example, the deadline for filing in this court does not begin when the public institution has adopted the act that would be subject to trial, but only after the person concerned is notified under the rules for administrative action that violates his or her rights, as well as deadlines and procedures for appeal.
The bill sets a shorter deadline for adjudicating administrative matters. It provides that the administrative court of first instance shall take a final decision on most issues within 60 days, while the Administrative Court of Appeal will make its decision within 30 days. Currently, making a decision on these matters by a court of first instance requires an average of more than 130 days.
The bill also gives the administrative courts the power to set fines against the heads of those public institutions that are party to a dispute, which is a fine equal to 20 percent of minimum salary scale for each day of delay, if there is disagreement with the court decision.
