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Unpaid bills to Albpetrol, KESH worth Euro 83 mln

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Bujar Leskaj, the head of the High State Audit, expressed his concern over the implementation of disciplinary and administrative measures by local and central government institutions, especially over dismissals

TIRANA, March 20 – Unpaid bills to state-owned Albpetrol oil company and KESH power utility accounted for the overwhelming majority of 86 percent, (around Euro 83 million) of the Euro 97 million, damage uncovered by the High State Audit in 2012. An annual report by the High State Audit shows damage caused to Albpetrol from unpaid bills by contractors in 2012 was at 9.1 billion lek, accounting for 69 percent of the total damage. The Albanian government has invalidated a record staggering bid worth Euro 850 million on the privatization of Albpetrol oil firm after the winning bidder, Albanian-led Vetro Energy consortium, failed to pay the financial guarantee leading to the finalization of the contract
Unpaid bills to state-owned power corporation KESH totaled 2.4 billion lek, or 18 percent of the total. Failure by CEZ Shperndarje, to pay off power bills to KESH accounted for 2.4 billion lek. The distribution system operator is currently under state management after the Albanian government revoked the licence of CEZ claiming contract violations.
The High State Audit filed lawsuits against 12 Albpetrol employees.
Introducing the report at the parliamentary economy and finance committee this week, Bujar Leskaj, the head of the High State Audit, expressed his concern over the implementation of disciplinary and administrative measures by local and central government institutions.
“While the level of the implementation of our recommendations on legal improvement, organizational, disciplinary and administrative measures is quite good, measures on dismissing employees who committed violations are quite low. We have proposed 120 dismissals but only 53 were carried out. The low rate is a result of lack of seriousness of the audited units in punishing the violators within their staffs especially for high ranking officials, unveiling the culture of impunity,” said Leskaj.
Abuses in the financial discipline during 2012 were worth 1.8 billion lek.
Most damage was identified in the sale and rent of state-owned assets, worth 674 million lek. The Ministry of Economy, Trade and Energy is reported to have caused a damage of 607 million lek in violations to concession contracts because of failing to collect concession fees. Procurements rank second with a total damage of 444 million lek of which 225 million lek only by the Interior Ministry.
Several municipalities such as that of Saranda, Pogradec, Peshkopi, Berat etc have also caused the state budget 125 million lek in urban planning because of not paying the infrastructure tax which stands at 1 percent of the investment value.
Operating expenditure rank third with damage estimated at 104 million lek followed by violations in the salary system with 72 million lek. The customs system has also caused the state budget 62 million lek in damage while the tax administration has abused 38 million lek
The High State Audit says it filed 40 lawsuits for officials involved in abuse of office mostly in local agencies for the legalization and urbanization of informal zones, as well as municipalities and communes. The Audit also gave 1,221 disciplinary measures against abusive officials.

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