The whole world has been shaken this week by the most massive leak in modern history, exposing the dark side of international finance: offshore transactions, tax heavens and politicians hiding murky deals and profitable shares. The Panama Papers is an impressive feat of investigative journalism: combining resources from reporters all over the world the leak has been transformed and will continue to take the shape of many different articles and news pieces that will shed light on corrupt affairs and will perhaps change the fate of several politicians.
Already the global public reaction has been fierce with some countries erupting in protests and others vouching for stricter transparency and accountability over this issue.
Albania has also been affected several times in the past by the appearance of the tax heavens often in the form of company registration addresses for entities applying for some very important tenders. In the failed tender for purchasing ARMO, the oil refinery of Albania, the applying entity shareholding company was registered in Singapore, although reports soon showed it trailed back to wealthy businessmen in Albania. The same country figures in the allegations of hiding money targeting a former Socialist MP exposed in 2013. With the Panama Papers exposure, another Albanian name has sprung up: the GFI company, the current winner company of a contested yet very profitable concession for the marking of gasoline. When the Albanian Competition authority tried to gather information for its own investigation on this concession it was faced with a staunch wall from the historical tax heaven of them all, Switzerland.
The GFI marking concession is an example par excellence of problematic deals between the public and private sector: it was granted just before power changed hands in the executive, it was not vested with the right mechanisms for accountability and it very soon showed its muscle in creating problems for all citizens when last year it blocked the gasoline trade and forced the government to consider its extra demands. The fact that its owners have operated in full Panama style: with offshore companies and offshore operations and changing the owners’ consortium soon after getting the contract with the government speaks in loud volume about the nature of the business and explains its damage to the public interest.
The attorney general’s office issued a statement early this week that investigations have begun and clarifications shall be sought from all involved individuals and entities who figure in the Panama Papers. This is a step in the right direction. The legitimacy that springs from a massive scale international investigation can serve as a shield towards the influence of domestic actors to hide themselves form this transparency effort. Some necessary trust might finally be revealed about shady tenders and concessions in this country. Moreover, for the majority coalition partner LSI who has launched a proposal to make concessions more transparent and more legitimate this might provide an assisting push in turning the proposal into a law. As the Competition Authority argues extra provisions are necessary to safeguard public interest especially in the case of ownership transfers, one of the most recurrent Panama style moves, in the case of important concessions.
The most important message that has made its way to Tirana just as it has done to any other capital where the rich and powerful take shelter is that: you can hide something from some people for some time, you can also hide something from all people for some time, but you cannot hide something from all the people all the time. Let’s hope that it will bring change.
