INTRODUCTION

 

 

Albania was one of the most isolated countries in the world and certainly within Europe during the communist period. It also remains the poorest country in Europe. The country opened up in 1990s and with substantial external assistance, a quick transformation into an open economic system took place. However, public institutions and oversight mechanisms could not keep pace. Civil society, including the private sector community and the press, were extremely underdeveloped and authority remained highly concentrated. Simultaneously, progress in putting in place institutional restrains in the political system and ensuring judicial independence has been moving ahead, but very gradually.

The geographical position, the level of the education, lack of employment and low economic development favored the illegal and criminal economic activities (clandestine traffic, marihuana cultivation, fuels' export during the period of Embargo versus Yugoslavia, etc.). Political clanning and the lack of respect for internal democracy were some of the main features that made possible the extension of corruption in the country. On the other hand the difference between state structures and political Parties power was completely wiped out, and favoritism, through using the power to ensure profits for the political class or group, representing the government, became dominating.

Another important factor, influencing on the actual size of corruption, in Albania, has been the political instability. This instability has brought about the variability in the public leading structures, thus paving the way to corruptive practices' penetration, being later infiltrated in every level of governmental pyramid.

The collapse of the pyramid schemes in 1997 - after they had enriched many high-level political figures - wiped out the life savings of the poorest Albanians, led to major disturbances and cemented the public distrust toward public institutions. A vicious cycle has emerged in which corruption acts as both a cause and a consequence of a chronically weak state and weak public institutions.

Coming out from a system where everything was state owned and everybody was working for the state, people in Albania were too slow in understanding clearly the concepts of conflict of interests.

Following the 1997 disturbances a newly elected government launched an anti-corruption initiative with donor support (World Bank - main donor).

 

 

Box 1.

Point of Discussion:

Implementation of many of these reforms has been driven by donors, partly because donors wanted to assure themselves that their assistance would be effectively utilized. However what should be discussed is the ownership of the reforms.

What happens if the reforms are mostly donor-driven and "commanded"?

How committed are the public officials/institutions in implementing measures in this case?

 

Surveys of public officials, enterprises, and households and a comprehensive government anti-corruption action program were developed and presented in a public workshop in mid-1998. The surveys were instrumental in raising the profile of corruption and shaping the terms of debate. Perhaps for the first time, the domestic media - which provided extensive coverage - turned to discussing institutionalized corruption rather than scandals involving individual public figures. As per this survey main points that came out were:

· In terms of Institutional Quality indicators, Albania is presently rating extremely low compared with the other countries in transition.

· In particular, in an international comparative perspective, Albania rates very low in terms of corruption indices, rule of law institutions, integration to the world economy, and productivity.

· Few international (investment) risk assessment agencies rate Albania at all. Those that rate the country assess the likelihood of foreign investors to lose their investment due to corrupt practices as extremely high.

· Tackling, rule of law and regulatory institutions, civil liberties, sound financial systems, and the professionalism of the public service are critical to address corruption.

Based on these results and also on the work of governmental anti-corruption group was designed a program to fight corruption. This government's program was broad and comprehensive, including more than 150 specific measures in the areas of economic policy, rule of law, public administration, procurement, audit, and public awareness.

Implementation of the program to date has been mixed at best, due to a several objective and subjective factors.

Firstly the political leadership itself was not free from the charges of corruption. Moreover, ownership of the program has diminished over time. The Prime Minister changed three times in a two-year period.

Also another problem has been the once it looked that there is real commitment from government side to implement the Anti-corruption matrix the Kosovo crisis started, and Albania was faced with a half a million refugees problem. This crises forced corruption to go out of Agenda of both government and donors.

After this crisis the flag to encourage and help Government in the implementation of the Anti-Corruption measures was taken by Friends of Albania.

After some several meetings about this issue and especially after the 22 July 1999 Friends of Albania International Conference in Brussels, it was concluded that Corruption along with Law and order problems remain crucial areas in need of solution. It was proposed than that the Anti-Corruption Action Plan (Matrix) should be revised.

As a result a revised Anti-Corruption Action Plan was prepared by the governmental group, updating the measures and implementation monitoring mechanisms. (The revised Anti- Corruption matrix attached)

 

CREATING A FAVORABLE INSTITUTIONAL AND LEGAL ENVIRONMENT FOR CURBING CORRUPTION

 

· Public Administration Reform

Background

On November 1999, a new law on the Status of Civil Service was approved. In addition, a number of regulations, guidelines and relevant procedures are designed and approved up to now, to make possible implementation of this law.

As the law defines, its scope covers the institutions of central and local public administration, including Parliamentary administration, the presidential administration, administration of the Council of Ministers, the ministries, independent central institutions, municipalities and regions. Also, a Department of Public Administration near to the Council of Ministers is established to develop, implement and oversee the implementation of the government's policies on the civil service and other personnel issues. But, the scope of work of this Department covers only the administration of the Council of Ministers and ministries, while the law covers the other independent central institutions and the local ones. The other institutions and the local government have to create their own department of personnel to manage their civil service in accordance with this law and other regulations.

As a part of reform, a new position is now functioning in Albanian ministries. It is the General Secretary, who is chosen/nominated as a technical expert, in order to provide the continuance of work in these institutions, when political persons (minister/deputy minister) have to leave. In addition, there are some efforts in preparing job description for each departments, sectors and employees only in central institutions.

The Civil Service Commission is defined by law as an independent institution charged with the supervisory responsibility over the management of the civil service at all institutions falling within the scope of this law. But, this Commission does not function since two of five members are not nominated yet.

As the law defines, the hiring in the civil service has to be carried out by means of open competition based on merits. DPA has to perform a long procedure for hiring a person at the central institutions. The personnel department has to do the same at the local level. But, there are many practical cases, when this procedure is not implemented and other factors have influenced the hiring process.

Despite the steps done, there are many critical issues regarding the public administration. A very harmful idea, that is widely extended, is that employment in public administration is considering by numerous people as temporary/ transitory employment, just to get some experience, in order to be able to work in the private sector. There is no any job performance evaluation system. A number of civil servants don't have any professional capacities and background for a given job. Training system hasn't give concrete results. There is no a training strategy and a special structure to coordinate this process. A number of civil servants can leave the job, even though they have profited training at the expense of state. The civil servant are frequently accused for lack of professionalism and accountability and unethical behavior in performing their job, getting bribes or using government property for private gains, etc. However, detection and punishment of corruption cases are very few. The spheres where corruption practices are pervasive include, public procurement, custom and tax offices, privatization process, etc.

 

Objectives

Restoring and building the trust to the central and local public institutions, both through correct implementation of the Law "On the Status of Civil Servant", and punishment of all civil servants accused/ found in corruption practices.

Actions

· Extension of the law on status of civil servant at local level and establishing and functioning of relevant structures, such as personnel department.

The status of civil servants set forth uniform regulations on conditions and procedures for entering the public service, career advancement, rights and duties of civil servants in order to create a professional stable and efficient civil service. According to its provisions, this law has to be implemented immediately at the local level, through finding right options, taking into consideration the principle of autonomy. This will bring the qualified and right people to local administrate, helping so in increasing public services quality.

· Functioning of Civil Service Commission

As a structure where civil servants can appeal for any unfair dismissal from public administration, it is very important the nomination of two other members of this Commission and its normal functioning. It also critical the monitoring of this commission in order to ensure transparency and efficiency in the nomination process of civil servants.

· Increasing transparency in government operations

The fight against corruption requires measures to increase transparency of government operations. There are some elements that should be carried out rapidly such as:

· The implementation of freedom of information legislation that informs citizens of the procedures for the government services, curtailing attempts to subvert the system or to demand gratuities for information that legally should be public. There is a need for a public awareness campaign about this law as many (public and public administration employees) are not aware what this law is about.

· The drafting of the job description and job evaluation criteria for all the positions in the Ministries and central Institutions. The same thing should continue to be done for all the functions of all the Ministries.

· The improvement and oversight of citizens' participation process in the open budget process.

· The verifications of declarations of assets and incomes of public officials. There is a need for the improvement of the existing law because it has functioned as needed. Civil society should be part of the improvement of the law.

· Inclusion of civil society representatives in governmental decision making processes.

 

Box 3.

Actually there is a law about the declaration of the Public Officials' wealth but this law does not define or predict the verification of these declarations. It is a necessity to establish a formalized structure, which would implement the law and control the declarations.

 

 


There is a feeling that government allows civil society to participate only in selected processes and in others where it does not feel comfortable civil society is not allowed to participate. This fact it is observed even in cases when international organization are involved in helping government. These actors instead of being transparent justify themselves by saying that …the drafting of a certain law…is strictly governmental job.

· Encouraging competition in public service

Competition removes the monopoly power of government offices reducing corruption. It discourages extortion of clients because they can take their business to a competing office when confronted with irregular demands or services.

· Applying of Sanctions

Applying sanctions to corrupt acts is an important step toward establishing accountability. In Albania sanctions are centered in legislation and penal codes e.g. giving and taking bribe from the public official is sentenced with fine or up to 10 years. Persons who denounce corruption should be aware about the sanctions and should be encouraged receiving part of the fine. For smaller cases of corruption government should be encouraged to establish sanctions even outside the formal legal system. Authorities can fire public officials engaged in corruption.

o Drafting and approving Law for confiscation of wealth received by illegal sources.

This is a important step in impeding corruption in public admiistration.

· Institutional incentives to fight corruption

The public administration reform should include institutional incentives to promote ethical behavior in civil service and avoid corruption. These incentives can bolster morale, professionalism and productivity. Up to now it is not seen that these incentives are being applied in the Albanian reform of Public Administration.

Some of the incentives could be:

o Salary increase,
o Improvement of working conditions and
o Monetary and non-monetary awards such as public recognition and professional awards in order to attract and retain qualified personnel.

 

· Improving the functions and operations of controlling and monitoring institutions as well as looking for possibilities to establish new ones

 

Background

Albania has several institutions that supervise the state structures but these institutions need to improve their activity. Some of these institutions are:

· The High State Control for economic and financial control of state institutions and state juridical persons.

· The People's Advocate (Ombudsman) defends the rights, freedom and lawful interests of individuals from unlawful or improper actions or failures to act of the organs of public administration.

· The anti-corruption sector at the General Prosecutor's Office that exercises the criminal prosecution.

· Anti-Corruption Sector in the State Security Agency that develop strategies to fight corruption.

· Anti Corruption Monitoring Group established by Prime Minister decision

· Other governmental bodies and Agencies that address corruption issues.

o Objective

The fight against corruption should be focused in the improvement of institutions that are supposed to fight corruption and in the establishment of new institutions and offices with controlling and monitoring functions. Units should be established for internal monitoring of corruption in institutions and increase the cooperation between institutions in their fight against corruption.

 

o Actions

· Improving the role of people's advocate (Ombudsman) and including it in the governmental anti-corruption matrix.

The Albanian Ombudsman is based on the Albanian constitution, article 60 - 63 and the Law no. 8454, date 4.2.1999 "On People's Advocate". The People's Advocate defends the rights, freedom and lawful interests of individuals from unlawful or improper actions or failures to act of the organs of public administration. He has the right to make recommendations to the institution that has been accused and to propose measures when he observes violations of human rights and freedoms by the public administration.

The ombudsman has been operating since 7 months now. This institution is in the early stages of establishment and their progress is slower that it should be. However this institution has some success story to sell to the public it still remains in shadow and it is not in able to gain public trust, which is very needed in institutions like this. The role of Ombudsman should be improved through:

· Designing of a specific strategy within the office of ombudsman in fighting corruption as Ombudsman addresses many corruption cases in the relationships between citizens and public employees.

· Preparing and presenting understandable reports open to the public to show results of their work in order to increase the transparency.

· Improving relations between Ombudsman and other governmental institutions. According to the law Ombudsman has the right to ask explanations for cases that he administers to all the governmental institutions but in reality they are not predisposed to give the needed information. There is much to do in making aware not only the heads of the institution but also lower levels of administration were the cases are mostly blocked by the ignorance of the law or even by the unwillingness to cooperate.

· Relationship with the prosecutor's office, as Ombudsman has no right to present cases in the court. The fact that Ombudsman has no right to present cases in the court is viewed as a problem in Albania where there is a rich experience of non-implementation or bad implementation of laws. However this should be resolved once there are formalized relations between Prosecutor's office and Ombudsman and channels of information are established between these two institutions for the cases Ombudsman has under authority.

· Working on public image of the ombudsman. There is a lot to do creating a trusted public image of the Ombudsman. This institution is in the first stages of development and until it has some success stories to sell to the public it will remain in the shadow and will not gain public trust which is so needed in an institution like this.

· Including Ombudsman in the government matrix of Anti-Corruption. This fact can probably be explained with the fact that this is an independent institution on which government exercise no power. However the recommendation could be made for this Institution to increase their efforts in fight against corruption by starting a public awareness campaign or focused awareness campaign for certain institution about the rights and the duties of Ombudsman. There are also other problems to be raised for their voice raised in national scale (not isolated in Tirana only) etc.

 

 

Box 4.

Responsibilities of Albanian Ombudsman

The people's advocate start the investigation of the case when he observes or has the doubt that the human rights hasn't been respected, based on the complain or request of the interested people as well as on his own initiative for some cases made public, but still with the approval of the harmed person.

In administering the requests and complaints from the citizens he has the following duties (article 17-19):

a. To receive the case and decide on: whether he should pursue with it or not; give an answer to the person, explaining the rights and ways to protects his rights; or pass the case to the competent. For all of the above he should notify the interested person/group within 30 days after receiving the complain/request.

b. Once accepting the case he can either: starts his own investigation; or ask explanations from the public administration as well as the office of the prosecutor in the cases of arrests; or recommend the Supreme Audit Institution to exercise its competencies;

c. In case he decides to perform independent exercises, he has the right to: (1) investigate; (2) ask for explanations from the central and local government administration and receive all the documents and materials related to the case; (3) interrogate any person that he judges related to the case; and (4) perform or ask for the conduct of expertise.

d. After the investigations he should notify the petitioner on its results (article 21 of the law).

 

 

· Improving and strengthening the role of Supreme Audit Office (High State Control) to curb corruption.

Based on constitutional and legal provisions, the High State Control monitors, and identifies every phenomena, problem or activity that is against the legal laws and regulations about the state budget. It can denounce and condemn the activities that are against the law and it can recommend measure to improve the situation.

In the governmental Anti-Corruption matrix High State Control has several objectives like:

· Establishing efficient foreign auditing institutions.

· Improving the methodology on audit planning.

· Increasing the training capacity within SAI;

· Increase the cooperation between SAI and other governmental institutions.

· Increasing the transparency in the auditing procedures.

· Increasing the quality of auditing etc.

 

However it should be said that some issues of concern are:

· Independence of the Institution. High State Control does not have its independence in the Constitution and many people believe that this is an issue of concern. What should be done for the independence to be formalized and institutionalized?

· The role of the High State Control in Legislation improvement. When a new draft law/regulation is prepared the normal procedure is that this draft law/regulation is sent for comments to line ministries and after these comments are received it goes to the Juridical Office of the Prime Minister and than it is passed by Council of Minister. The fact is that none of these draft laws or regulations (of whatever nature) have been sent to the High State Control for any comments or suggestions while this is the Institution that is supposed to control their implementation.

· What happens with the recommendation of the High State Control. In fact nobody knows what happens with the cases that they send to Prosecutor office or for the measures they propose for the cases when they found that the law has been broken. There is evidence that many of them are not taken into consideration from the respective institutions. This is a point of a future research consideration.

· Supporting and encouraging the work of the governmental Anti-Corruption Monitoring Group

Prime Minister has ordered the creation of the Anti-Corruption Monitoring Group, which will be comprised by:

- Board
- Anti-Corruption Unit.

This measure has been advised by the Council of Europe and the technical assistance is coming from this donor. What should be emphasized here is the fact the employees of the Anti-Corruption Unit are under the Civil Service Law. The role of this struture is still to be seen.

· Improving the Public Procurement system

Background

Procurement is one of the areas mostly affected by corruption. The National Public Procurement Agency is the central body that coordinates and improves the public procurement system. The National Public Procurement Agency is included in the government Anti-Corruption matrix but still there are a lot of problems to be solved in the future in order to have a competitive procurement system that limits the authority of government officials and affect in curbing corruption.

Objectives

Improvement of the law on Public Procurement in order to bring it in the same lines with the Procurement laws of Western Countries. Strengthening the institutional capacities of Public Procurement Agency, training of its employees, as well as establishment of an adequate information system for the tender's notices and winning announcements.

Actions

· Improvement of legal framework regarding Public Procurement

· Establishing a reward system in order to motivate employees to work more effectively in the fight against corruption.

· Organizing of training programs and seminars in cooperation with international donors (World Bank and UNDP).

· Improving the work of Advisory intergovernmental group.Much can be discussed about the efficiency of this structure

· Avoiding of cases with the employees who after have been trained leave their place of work.

 

 

Box 5.

Prime Minister nominates an advisory intergovernmental group consisted of representatives of main central and local procurement entities. This group gives advises and opinions with regard to the functioning of public procurement system as well as the proposals that the Agency will present at the Council of Ministers.

 

There are different ways to address this issue:

One is the employment contract should address this issue by stating a minimum period staying in the position and also every training should be followed by a minimum period staying in the position after the training.

Second would be improvement of their status. This agency is one the most important in the fight against corruption where the image should be very positive. Ethics is another important issue for the Agency.

· Developing of Cross-Institutional training program where views of the National Agency should be faced with the views of procurement officials in different level of government in order to have a common understanding of the Law and procedures.

 

Reform of the political party sphere

Corruption in the political party sphere is not mentioned in Albania when the main attention is focused in the corruption of public administration sphere. However, there are rumors about the fact that financial sources of parties as well as their expenses are not made public. Increasing the transparency in this direction is a step toward curbing corruption. There is a need to emphasize this fact with new general election approaching in July of this year and political parties campaign in the horizon.

- Economic Activity of Political Parties?

REFORMING THE JUDICIAL SYSTEM

 

Corruption is a serious problem in the judiciary (as well as in the rest of the public administration), notwithstanding that both the giving and receiving of bribes are crimes under Albania's Criminal Code.

When the issue of corruption is mentioned in Albanian all the people think about the courts. Courts are places when various conflicts are solved so the reforming of the judicial system should be a priority.

Combating corruption in the judiciary will require addressing a series of issues. These include reform of legal education, upgrading the professionalism and quality of judges, improving the physical infrastructure of the courts, and the publication and dissemination of legal information, including judicial decisions, as well as working intensively and extensively with the internal code of ethics of the judges themselves.

 

Legislative reform in judiciary

Background

Since its transition, which began early this decade, Albania has made remarkable progress in passing legislation anticipated to have significant future relevance to public and private sector activities. Rather than too little legislation, however, a significant problem now is "legislative overload" (i.e. too many new laws enacted too quickly for the public and private sectors to absorb properly) and weak implementation and enforcement of laws. In the mean time aside of this "overload" the inconsistency of the legislation add to the problems and overall confusion of the system. The weaknesses in the judiciary lead to corruption and are due to:

  • Political influences in judicial appointments and dismissals;
  • Poor legal education, including judicial education;
  • Low salaries;
  • Poor court and case management procedures and techniques;
  • Lack of trained court personnel;
  • Vastly inadequate physical infrastructure;
  • And lack of access to up-to-date legal information.

The judiciary administration should improve these issues in order to curb corruption.

Objectives

Quality and consistency of Albania's new legislative framework needs to be reviewed and gaps, internal inconsistencies and other inadequacies addressed, not as a one-time exercise, but through a permanent domestic institutional structure. An institutionalized effort should be taken to come up with the identification of the inconsistencies and conflicts within the legal framework.

Actions

  • Publication and dissemination of legal information, including judicial decisions in order to increase the transparency in fight against corruption.
  • Strengthening judicial independence involves revising procedures for appointing, assigning, remunerating, and removing judges and prosecutors to insulate them from political influence

Designing code of ethics for the judges and working intensively and extensively with judicial administration in order to implement it.

Enforcement of judicial decisions through strong mechanisms. In Albania, where the rule of law is not yet firmly established and judicial decisions are often ignored, formal and fair enforcement mechanisms which work are badly needed. The recent approval of the Law on Judicial Police opens premises to improve the situation in this direction.

  • Increasing the uniformity of legal draftings. This should be done through a permanent law commission that will play an important role in addressing the problems of substance or content, shortcomings, terminology, translation etc.

 

Recruitment and professional training

Background

Improving the level of basic legal education is imperative. It is also an urgent need to secure that judges have the requisite specific judicial knowledge and qualifications. With the opening of the Magistrates school in 1997, the government undertook an important step in this regard. Although much remain to be done to upgrade its faculty and curriculum, this school already functions as the sole institutions in charge of educating new judges.

The main problems are related with the weaknesses of the level of legal education and the lack of trainings. The organ that has the duty to train the judges is the Magistrate School.

Objectives

The main objective is to improve the legal education through improvement of school education and development of trainings as well as the improvement of standards of requirement of judges and prosecutors.

Actions

  • Improving the level of basic legal and further on education for magistrates. Albanian has a poor legal education. The strengthening of the legal education should be done through a fair selection of students based on skills in order to prevent corruptive practices in their selection. Another point is the further on education of judges and prosecutors through trainings because of frequent changes of legislation.
  • Magistrate School. This school has focused its limited resources mainly in the preparation of the new judges while it has come the time for this school to think for the training of existing judges as well.

Training of the pedagogical staff of the Law Faculty

  • Improving the institutional capacity and curricula of the Law faculty

Designing trainings about the cases of corruption

 

o Court administration

Background

The court trials are involved in the small rooms without sufficient chairs to sit on and sometimes the people are not allowed to participate in court trials that are open for the public. Among most important problems is the delay of court trials without any legal causes and unethical conduct of judges.

Objectives

Open and transparent court trials, improved infrastructure of the courts and improvement management of the courts.

Actions

  • Eliminating the intentional delays of court proceedings and developing a fast and professional court system in order to prevent corruption. Nowadays, the delays of the court trial are a great problem that leads to corruption. The parts are often tired from the long court trials and after they lose the faith in the judicial system are more predisposed to give bribes. Making court trials proceed faster can be done in several ways. Some of them are:

· Protecting the witnesses through the designing and implementing of a law that defends them from the accused.

· Improving the system of subpoenaing witnesses.

  • Establishing and implementing of sanctions for those lawyers that intentionally delay the court trial without any legal reason.
  • Improving the physical infrastructure of the courts through investments from the state budget in order to improve the environment when are developed court trials.
  • CURBING CORRUPTION IN ECONOMY

     

    PRIVATIZATION

    Background

    Albania made a very rapid early progress in private sector share of GDP to over 50% by the end of 1994 and more than 75%-80% [1] last year. During 1999-2000 serious steps were made towards strategic industries privatization. Albanian Mobile Communication Company (one of the most successful state owned enterprises) was sold and its now being operated by private hands. Major industries like Cement and other Industries were also privatized. National Commercial Bank was also privatized and has already started its operation under private management.

    Under consideration for near future privatization is Albtelecom. The Consultants' Group is working and has just presented the first report.

    The experience of Albania and other transition countries shows that during the privatization process are almost unavoidable cases of intentional or unintentional law violation. This possibility becomes bigger when "experiments" are being made and the impact of the politics in the economy development becomes greater.

    Objectives

    Create premises to have a transparent and efficient privatization process. Monitor the process and suggest improvements both in the legal framework as in the implementation mechanisms.

    Actions

  • Suggesting improvements in the procedures for objects' evaluation (objects to be privatized) and the dispositions that deal with this problem

 

There have been many discussions about the evaluation of state objects to be privatized when in many cases have been observed that the value decided for privatization has been lower than the real value (This compared even with similar other objects). In this regard especially for important objects it may be worth having an international auditing of the evaluation process. (Please refer to the box.)

  • Evaluation of tender and auction effectiveness in Albanian privatization.
    This evaluation in a form of study would help to understand some of the difficulties and problems with this ways of privatization in Albania
  • Monitoring of Post- privatization activity.
    This is an issue that rises after some facts of privatized objects only to be closed or their collapse and bankruptcy. Probably this issue should be addressed in the initial documents of privatizing certain object.
  • Resolve the problem of Privatization Bonds in Albania.
    Privatization bonds process has been a total failure in Albania. However the issue remains unresolved although the privatization of small and medium enterprises is considered almost finished and strategic sectors privatization is moving fast also.

    The over-passing of their time limit obliged the government to delay the limit in 5 other years (until 31 December 2004), but should be mentioned that up to now no measure has be taken to create the confidence that once these bond will be used in the privatization process. Also the Privatization strategy (1997) with the additional strategic sector privatization strategy creates the impression that only small part of the PB and from specific groups will be used in the future privatization process. (Employees of the enterprises that will be privatized)

This is issue should be clarified as soon as possible as it may be a "sleeping bomb" for Albanian Society.

 

 

Box 6.

Due to the High State Control the decisions Nr 405 and 407 dated 31.08.1999 of the Council of Minister and their implementation for the selling of Joint Stock companies through auction without initial prices, were a big mistake, which did cost the state budget a lot of money. Following is table where it is shown that many companies were sold for minimal prices.

Table (Companies privatized without initial auction price)

Company

% privatized

Nominal value

Winning Offer

% on Nominal value

Arteeksportimport Tirane

51

48297000

40200000

83.2%

Frigoriferi Durres

51

117006750

200000

0.2%

Prodhime material ndertimi Elbasan

51

82620000

11111111

13.4%

Dinamo Tirane

51

84183660

39000000

46.3%

Perpunim pesticide Durres

51

38624850

3800000

9.8%

Prodhim mobilje Durres

51

28857840

15500000

53.7%

Furn. Ndert Nr.1 Durres

51

22057500

10300000

46.7%

Industrialimpeks Tirane

51

21930000

7000000

31.9%

Furn. Ndert Nr.2 Durres

51

22924500

5000000

21.8%

Kaldaja Durres

51

35575000

10300000

29.0%

Uzina Mek pjese nderimi Durres

51

40494000

2050000

5.1%

Tekstili Berat

51

588995000

20200000

3.4%

Frigoriferi Dvoran Korce

51

14446680

710000

4.9%

 

 

 

 

IMPROVE CONDITIONS FOR ESTABLISHING AND CONDUCTING BUSINESS IN ALBANIA

Background

Businesses are the supply side of the corruption coin. In this regard businesses are being aware that corruption is a challenge that they must face and that they, private sector have a role to play in eliminating this disease. However the picture is very complex and requires complex measures too.

Objective

Create a level playing field for establishing and conducting fair business in Albania.

Actions

Reduce the possibilities for Informal economy activities

Informal sector (gray sector) remains one of the main sources of corruption in the country. This sector is not comprised only by the enterprises that operate completely illegal but even by legal enterprises that declare less profit or do not declare their workers. Radical changes of Albanian's economy after the downfall of the communist regime have induced not only the change of goods' production structure, but also the structure of producers and prices of such goods. The estimation is that this sector gives more than 50% of the real GDP in Albania. One of the main negative impacts of this sector is that it creates an unfair competition with the regular sector.

For this reason in cooperation with state structures and business association it should be designed a focused strategy which would consist of:

  • Further Liberalization of licensing procedures
  • Reduce bureaucracy in establishing a business
  • Simplify customs and tax procedures
  • Review the social insurance procedures and tariffs
  • Raise the public awareness about the informal sector

 

  • Establishing modern corporate governance standards

These standards would help to reduce the supply side of corruption. By these standards are meant the practices that companies use to run their board of directors, set polices for behavior throughout the company, develop business strategies, and generally steer the corporation. Concepts that contribute to effective corporate governance include

  • Instituting independent audit
  • Defining the concept of "conflict of interests" and how it affects members of the boards of directors and senior management
  • Strong independent boards of directors, with a strong audit committee and internal audit functions;
  • Laws and regulations guaranteeing shareholder rights, especially the rights of minority shareholders
  • Established and accepted standards of financial accountability and transparency within firms
  • Commitment to honest and fair dealings with all elements of the community (employees, suppliers, customers, neighbors etc)

 

  • Strengthen business associations in Albania

 

Business associations in Albania are not in the needed level of development to be real representatives of business interests. The mentality of Albanian businessman has not yet reached the level of understanding that associations may accomplish a lot in improvement business environment in Albania and also counteract corruption. Business association in the fight against corruption can:

  • Demand the government to sign and enforce different anti-corruption conventions and subsequent legislation
  • Inform the policy makers about discrepancies in the application of anticorruption measures and help legislators define more effective laws.
  • Play the role of "watchdog", to make sure that the government is living up to its promises of reform. In this type of program and also in legislative alert type programs the business association reports back to their membership on the activities of government and whether or not policy makers are addressing the needs of businesses
  • Advocate for increased open-market reforms.
  • Restore the sense of ethics and ethical behavior as a norm in business operations
  • Increase the communication and information channels between Business community Governmental institutions that deal with them (Tax Departments, Customs, Social Insurance Offices etc.)

 

 

 

Box 7.

Consulting Council for Business development problems

With the Prime Minister decision Nr. 55 dt. 17.2 2000 it is established the Consulting Council for Business Development Problems. This Council operates near the Ministry of Economic Cooperation and Trade and it is headed by the Minister. It is comprised by the heads of important governmental structures that deal with corruption and representatives of business associations. However the representation of businesses in the Council should be reevaluated, as the ratio between governmental officials and business representatives is far big in advantage of the Governmental officials (15-4).

The aim of this structure is to ensure continuous dialog of government with business community for the design and implementation of laws and regulations that affect business activity.

The main areas this Council deals with are :

· Business development programs and strategies

· Fiscal and Customs Policies · Public Procurement policies

· Policies of encouraging investments

· Trade development policies

It is necessary in this framework that the Council addresses Corruption as one of the main areas of its activity in order to make the fight against corruption more focused!

 

 

IMPROVE THE WORK OF GOVERNMENTAL STRUCTURES THAT DEAL WITH BUSINESS ACTIVITY

Customs

Customs is one of the institutions most cited for corruption in Albania. Since the Albanian Government started the Anti-Corruption Plan in 1998 Customs were at the center of the efforts for reducing corruption. Since that time some results are achieved as following:

  1. In cooperation with Custom Assistance Mission, the Custom Department is reviewing the organization and structure of the existing units of internal control. Job description for inspectors of control in the center and regional units has been designed and also the annual auditing plan has been completed.
  2. Final guidelines for the organization of the control service after the custom clearance were prepared in cooperation with CAM.
  3. The organizational structure of the internal control has been completed with all the needed personnel and training programs have been organized for all the inspectors of the Control Departments as well as regional departments
  4. It has been drafted the monthly and annual program for each custom unit and their implementation is followed on daily basis; as a result of this work the incomes for the first 9 months of this year were 6.5 billion leks more than the period of a year ago.
  5. It has been organized a special training in regard with the control of value application and work has started to draft a comprehensive training program.
  6. The Draft-Code of Custom Ethics has been prepared in cooperation with Euro-Customs. This draft-code includes the training module for the ethics, which is expected to be soon approved.
  7. In achieving the objective to increase the custom officials motivation: the reward system based on the fines and sanctions has continue to apply. The custom officials have received the reward according to the guidelines for special achievements; the new system of annual reward of custom officials has been already approved and will be applied for the end of 2000.

However there are still gaps to improve the work of customs.

Actions

  • Strengthening the cooperation between Customs and Tax Offices regarding the information in goods entering and leaving Albania.

There is a need to find a way to compare the customs data with the tax data. There are cases when imported furniture is declared in the customs with the value of 200 USD and it is sold with the value of 2000-3000USD. Probably a pilot crosscheck data project may start and based on these procedures may be than shaped in order to have a system that matches data.

  • Computerization of customs and their linkage with border countries customs. Cross border corruption is an Issue that should be more emphasized nowadays when the environment in the region is for a regional integration in European Structures. A practical thing to do in this regard is to start matching the statistics of the customs by country and find the "wholes" in order to point the direction, which should be improved in these institutions.

 

  • Apply the Code of Ethics for Customs

    o TAX DEPARTMENTS

Actions

  • Strengthening the implementation of tax collection procedures, through reorganizing of tax police based in a new law.
  • Improving procedures for registration, collecting and paying of taxes
  • Improving control on the tax declaration procedures
  • Strengthening the professionalism and effectiveness of the tax administrators, through strict hiring procedures, based on specific criteria; continuous training programs and regular testing of administrators.
  • Increasing transparency of tax administrate' s procedures, through

    o Preparing and publishing the guides based on the tax law,
    o Realizing public awareness campaign to make more clear the rights and obligations of taxpayers;
    o Unification of the punishment system in the case of non-paying taxes; and
    o Making the appealing procedures simpler.

 

  • Strengthening strict procedures regarding tax control and their administration.
  • Definition of penal and administrative responsibility of tax employees
  • Improvement of information exchange
  • Qualification of tax inspectors

 

BOX 8.

Issues dealing with corruption coming out from the Prosecutor's Office Processed by IDRA Specialists

· · · There is no audit until today for the production of fiscal stamps, their selling and administration, while there are many cases where false fiscal stamps are caught, even it has been found out where they are produced (Macedonia). There is a need for urgent measures for a complete and analytical auditing of fiscal stamps.

· · · For more than 23 ships there are indications that they do illegal contraband and there is no evidence: who has privatized them, who is their actual owner, who has resold them and had bought them, who are their captains and their crew, what are their entrances and exits in Albanian territorial waters. There are evidences when some of these ships have changed their names to hide their crime evidence. There is a need probably for a specific law which would require the evidence for all the owners of Albanian ships, change of ownership, exact registration at the port capitenery, their licenses for sailing, their crew etc.

· · · There are cases when high state officials use their authority given by their positions to favor certain individuals or juridical persons (avoid their duty fees, win tenders etc). In the Penal Codes of Western countries there is a penal disposition that generally is called "traffic of influence". There is a need to include this disposition in Albanian Penal Code, which lacks it.

· · · Probably there is a need to design a law for the confiscation of the wealth acquired from illegal sources and once it is approved regulations should follow to make effective the implementation.

· · · Majority of the balance reports presented today in the tax offices are with false contents (this is exactly how it is stated in the internal report), so the Ministry of Finance should undertake measures to verify these reports and send to the prosecutor office cases when they find fraud.

· · · There is a need for strict control for the Auditing of " Biggest 200" (200 biggest companies evaluated by tax offices), some of which almost pay nothing (taxes and other duties) to the state.

· · · There is a need for a careful and extensive auditing of all the aids that enter in Albania, which as known are exempted from VAT and customs duties. However there is evidence that considerable part of them enters in the market or are re-exported in other border states.

ACTIVE ROLE OF CIVIL SOCIETY IN THE FIGHT AGAINST CORRUPTION

 

· Mobilizing the Civil Society in the fight against Corruption

Background

The role of NGO's in the fight against corruption is very important in a democratic society. It should be said though that in Albania this role is still very weak. The strategy of fighting corruption up to now in Albania has been top-down i.e. starting from the governmental initiative. Also in this period in Albania NGO's lost a lot of time to find their place and position. That's why their role in the direction of the political, social and economic emancipation of the country is still low. However now Albanian NGOS has reached a certain level of development and with some channeling efforts may be ready to start a collective action against the epidemics of corruption in the Country.

Objective

Create a Coalition of Civil Society representatives, which would:

· Raise the public awareness for the costs and causes of corruption in Albanian society

· Support the reforms for the reduction of corruption in all state institutions

· Serve as a watchdog over governmental initiatives in the field of Anti-Corruption

· Foster the principles of integrity, transparency and accountability in governance and society.

· Encourage the civic society participation in the decision making process.

· Increase the cooperation among interesting groups in the efforts against corruption including governmental structures, regional and international initiatives etc.

Actions

· Improvement of Legal framework under which the NGOs operate in Albania
Although during these years the third sector has made development progress it should be said that Albania still lacks modern legislative rules for the formal status of NGO's as interlocutors and actors of the public participation in the process of policy making. Albania does not have a specific Law on Non profit organizations. Although the work has started since two years it is still in a drafting process. The drafts presented so far have been widely refused by the NGO community in Albania. In order to have a modern and accepted NGOI Law there is a need that the participation in the process of this draft law be a collective and institutionalized participation and not a random and rare one.

· Improving the Implementation of the Freedom of Information Law

· Create mechanisms of cooperation between state institutions and civil society in the fight against corruption.

· Extension of cooperation among NGOs
Promote joint actions and projects of NGOs.

· Strengthening of cooperation among NGOs in the region for the purpose of fighting corruption in regional level.
Corruption is not an isolated phenomenon within the borders of a country. In contrary it is a phenomenon that easily passes through borders. In this regard it is crucial the cooperation among NGOs in the region so they can exchange information, experiences, aware governmental structures etc. to reduce the corruption in their countries.

· Cooperation with International organization in the Anti-Corruption Efforts (Opening of a branch of Transparency International In Albania)
The role of international organizations is crucial as well. As previously mentioned in this material the Anti-Corruption Initiative was undertaken with the support of World Bank, Soros Foundation, USAID and EC. But the role of focused organizations as Transparency International, for example, is still missing. It is the time that Transparency International opens a national Branch in Albania.

 

STRENGTHENING THE ROLE OF MEDIA IN THE FIGHT AGAINST CORRUPTION

Background

Press and Media in general have had a development boom these years of transition in Albania. Many newspapers radio - broadcasting and TV stations have been established. Although the number of the media actors have increased dramatically this cannot be said for their quality. What can be seen in general for the moment in this field is:

  • Most of the actors are technically underdeveloped (this means the professionalism of journalists and the technology)
  • Dependence from certain business lobbies which finance them for their interests
  • It is subject of political instrumentalization (which brings the issue of credibility of media)

Their role in the fight against corruption has increased in the past two years.

Objective

A strong, credible and professional media is a serious threat to all corrupted persons and structures. The work in this direction should consist of improvement of the image of the media, the professionalism of journalism in order to have a transparent and efficient communication tool with the public.

Actions

· Professional Code of Ethics for Journalists

The ethics of the journalists is not in the needed level, and the corrupted people are exploiting this by encouraging distrust in media. Here we should mention the sentence of a famous Albanian journalist: "..in Albania exists a press of the revolver type…". So, sometimes without real facts this "revolver" hits, becoming in this manner a promoter of the tension in political life in Albania. Sometimes the "facts" are fabricated and the next day they are denied in a small corner of the newspaper. Foir this reason it should be cooperated with the associations of journalists and their trade unions in establishing professional ethical rules in their activity.

· Training of investigative journalism
It would be very helpful if these trainings were organized in regional basis so the investigative journalists create regional strata that may think of their own channels of information and ways of cooperation.

· Trainings with the basic economic concepts for the journalists that cover economy in media.

· Joint training modules on the freedom of Information Law of journalists and offices of Public Information in governmental organizations.

· Monitoring of media for the cases of corruption presented in them

INTERNATIONAL COOPERATION

 

Below follows an exhaustive inventory of International efforts to curb corruption in Albania

Support given by Friends of Albania members in the field of Anticorruption briefly:

 

  • European Commission:

Institutional reform:
· Public Administration
· Joint Action Plan fro Legal and Judicial Reform
(With CoE)
· Customs (CAM- Albania Mission)
· Police (support to WEU/MAPE)

 

  • World Bank

Institutional reform:
· Public Administration
· Judicial Reform
· Budget
· Public Procurement

 

 

  • Council of Europe

Promotion of guiding principles through European conventions Support for anti-corruption monitoring process

Institutional Reform:
· Joint Action Plan for Legal and Judicial Reform
· Support to Ombudsman (People's Advocate)

 

 

  • OSCE

Chairmanship of Friends of Albania (Anti-Corruption Group)
Institutional Reform:
· Support to General Prosecutor's office (expert in residence)
· Support for People's Advocate · Support to Ministry of Public Order (advisory)
· Support to Minister of State (advisory)
Media Reform

 

 

  • United States

Institutional Reform:
· Police Training
· Support to judicial system

 

  • Denmark (Danida)
    People's Advocate

· General Prosecutor's office
· Judicial Inspector's office
· Tirana Law Faculty
· Magistrate school
· Media reform

 

  • United Kingdom

Support for public administration reform

 

            INTERNATIONAL ORGANISATIONS

Implementing Agency

Council of Europe

Project

Criminal Law Convention on Corruption

Project duration

Passed on 27 January 1999 and on-going

Objectives/Actions Taken(s)

Several laws are being drafted by the Government, including a new State Police Law to restructure and professionalise the force. Albania signed the Council of Europe Criminal Law Convention on Corruption on 27/01/99 and as such is a member of the Council of Europe's Working Group on Corruption (GMC).

Implementing Agency Contact Information

Manuel Lezuerta
Head of Crime Problem Division, COE
Directorate of Legal Affairs, COE
Strasbourg , 67075 Cedex France Tel: (33) 88 41 21 25
Fax: (33) 88 41 27 94

Email: manuel.lezertua@daj.coe.fr

Implementing Agency

Council of Europe/ European Commission

Project

Octopus II

Project duration

June 1996 - 31 December 2000

Objectives/Actions Taken(s)

In June 1996 the Council of Europe and the European Commission (Phare Democracy Program) established a joint project on the fight against corruption and organized crime in Central and Eastern European countries (also known as the "Octopus project"). The project was set to run for 18 months.

The Council of Europe and the European Commission have decided to pursue their joint initiative with a second program, Octopus II, which will last two years (1999-2000). The program aims at strengthening legislation, the competence and co-ordination of law enforcement agencies, preventive measures, crime control policies as well as international co-operation.

The Octopus project is composed of four different stages:

Project I: an evaluation of the problem of corruption and organized crime in the 16 states involved in the project, as well as an assessment of the efficiency of counter-measures already taken by the governments of these countries.

Project II: recommendations and guidelines are formulated by five Council of Europe experts for each of the beneficiary states. Actions to promote co-operation at regional level are proposed.

Project III: follow-up of the implementation of the recommendations and guidelines proposed by the experts.

Project IV: evaluation of the impact of the project and further proposals.

Implementing Agency Contact Information

Ludovic Aigrot, Programme Officer,
Crime problems Division, COE
Directorate of Legal Affairs
Strasbourg , Cedex 67075 France ,Tel: (33) 388 41 23 54
Fax: (33) 388 41 27 37 / 45,Email: ludovic.aigrot@aj.coe.fr

Implementing Agency

European Bank for Reconstruction and Development (EBRD) - Albania

Objectives/Actions Taken(s)

Promotion of the integrity in the investment environment, which includes the development of laws and institutions, which enhance transparency and accountability. Particular emphasis is put on bankruptcy, corporate governance and regulation of capital markets.

Implementing Agency Contact Information

Giulio Moreno
Head of Office
EBRD Resident Office
Rruga Deshmoret e4
Shkurtit No. 26
Tirana, Albania Tel: (355) 42 32 898 / 35 204
Fax: (355) 42 30 58

Implementing Agency

European Commission

Project

Institution Building and Strengthening -PHARE Program

Project duration 

Objectives/Actions Taken(s)

Continuous

To help tackle corruption in public administration and the judiciary the EU is:

·         Helping Albania develop a modern judiciary compatible with EU standards. It has supported the Council of Europe in the organisation of the judicial system. Legal and regulatory frameworks have been put in place, assistance has been provided to the Ministry of Justice and other judiciary institutions and training programmes have been organised in the School of Magistrates.

·         Improving court facilities, and providing support for the rehabilitation of the prison system, in order to improve its quality and standards of incarceration.

·         Providing training and equipment, including vehicles and uniforms, to the Albanian police. An effective Albanian police force has an essential role to play in establishing the rule of law and providing internal security. Such support is closely co-ordinated with the Western European Union’s MAPE project (Multinational Advisory Police Element).

·         Assisting the Albanian authorities in the preparation of a strategy for medium-term development of the Albanian police.

·         Enhancing the professionalism of the civil service with the aim of establishing an efficient self-sustaining public administrations compatible with those in the EU.

·         Working with the Albanian Customs service to restore control of revenue collection following civil unrest in 1997. A Customs Assistance Mission in Albania (CAM-A) was deployed and has achieved valuable results in terms of revenue collection, prevention of smuggling and corruption and reinforcement of the service.

Providing assistance to INSTAT the national statistical institution, to organise a population census in the year 2001. The last census organised in Albania dates back to 1989. There have been major changes since then and the government lacks a clear picture of the current geographical distribution of the population and its composition. These figures are essential to design policies and to achieve the adequate budget allocations to the local communities.

Implementing Agency Contact Information

Phare and Tacis Information Centre
Rue Montoyer 19 / Montoyerstraat 19
B- 1000 Bruxelles / Brussel

Tel: [32-2] 545.90.10

Fax: [32-2] 545.90.11

E-mail: phare-tacis@cec.eu.int

Implementing Agency

United Nations Interregional Crime and Justice Research Institute (UNICRI)

Objectives/Actions Taken(s)

In March 1999, UNICRI launched, in collaboration with CIPE, the 'Global Programme Against Corruption'.

Since 1998, UNICRI assists Albania in the Prevention of Crime and the Administration of Justice.

Implementing Agency Contact Information

Ugljesa Zvekic

Deputy Director

viale Maestri del Lavoro, 10

10127 Turin (ITALY)

 

Tel. (+39) 011.653.71.11

Fax (+39) 011.631.33.68

E-mail: unicri@unicri.it

Implementing Agency

World Bank

Project

Albanian Government Anti-Corruption Program

Project duration

1998-2000

Objectives/Actions Taken(s)

The Albanian Governmental anti-corruption program was launched in Tirana on June 30th 1998. Further co-operation with the Government and activities are planned. Other activities:

a) PREM/EDI Anticorruption Workshop, Chaired by Prime Minister and broad based participation from different branches of state, media, civil society in 1998.

b) Diagnostic surveys of public officials and enterprises in 1998.

c) Donor/Government Co-ordination Meetings (every three months) in 1999.

d.) Diagnostic surveys on health and education in 1999.

e) A Government anti-corruption program was launched in Tirana on June 30th 1998.

Further co-operation with the Government and activities are planned.

Implementing Agency Contact Information

Jolanda Trebicka

Deshmorete 1 Shkurtit Str nr.74
Tirana, Albania
 

Implementing Agency

World Bank

Project

Trade and Transport Facilitation in Southeast Europe Project (TTFSE)

Project duration

2000-2003

Project scope

Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia and Romania

Objectives/Actions Taken(s)

In cooperation with other partners, the World Bank has begun implementing this program to improve customs facilities and services in Southeast Europe. The program aims at:

·         Modernizing border crossings and upgrading customs services,

·         Reducing smuggling and corruption at border crossings,

·         Improve the climate for investment,

·         Reducing costs to trade and transport, and

·         Strengthening regional partnerships and expanding regional trade.

The program is based on four pillars of action, including (a) physical improvements to border crossings, (b) technical assistance to strengthen the customs administrations, (c) computerization of procedures at the border crossings and the electronic filing of customs declarations, and (d) improved exchange of information between the border control agencies and the business community.

The program is conceived as six near-simultaneous country operations to be implemented over three years, starting in mid-2000. The regional steering committee where each government will be represented by a high-level project coordinator will be responsible for coordination across countries.

Financing

The total cost of the Program is estimated at US$ 115 million equivalent. IBRD loans of US$ 38 million and IDA credits of US$ 30 million would finance about 60 percent of this total. The EU is providing grants of about US$ 20 million equivalent, while the US government has been asked to provide grants of about US$ 9million. The recipient governments will finance the remaining US$ 18 million, about 15 percent of the estimated cost.

Implementing Agency Contact Information

Graham Smith, ECSIN
TTSFE Team Leader
The World Bank
1818 H Street N.W.
Washington, CD 20433

Tel: (1 202) 473 2472
Fax: (1 202) 522 1165

            BILATERAL AID AGENCIES

Implementing Agency

Canadian International Development Agency (CIDA)

Project

Local Initiatives Programme (LIP)

Project Duration

January 2000-March 2001

Budget

$Ca 500,000

Objectives/Actions Taken(s)

The Central and Eastern Europe Branch focuses on supporting democratic development and economic liberalization in Central and Eastern Europe and the former Soviet Union, by building mutually beneficial partnerships. The Central and Eastern Europe Program aims to assist the transition to market-based economies and to encourage good governance, democracy and adherence to international norms.

The Local Initiative Program (LIP) for Albania supports proposals from non-governmental organizations (NGOs), institutions or individuals from the developing countries, recipient governments or recognized institutions (including academic and media) working locally in the humanitarian, social and democratic development sectors to develop a pluralistic society. Assistance ranges from small-scale reconstruction, community infrastructure, support to local NGOs and small community-based groups which promote for example, human and minority rights, strengthening of civil society, democracy and good governance.

Implementing Agency Contact Information

CANADIAN INTERNATIONAL DEVELOPMENT AGENCY

CENTRAL AND EASTERN EUROPE BRANCH

200 Promenade du Portage

Hull, Quebec, Canada, K1A 0G4

Tel. : (819) 994 5195, Fax : (819) 994 3669

Implementing Agency

Danish Ministry of Foreign Affairs, Department for Humanitarian Assistance and Assistance to the Balkans

Project(s):

Project 1: Support for the Establishment of the Albanian Ombudsman Office (Peoples Advocate)

Project 2: Support for the Albanian General Prosecutors Office

Project 3: Support for Judicial Inspectors Office

Project 4: Support for Pilot Project in Dibra County

Project(s) duration:

All projects run for a 3 year period, beginning in 2000

Objectives/Actions Taken(s)

Project 1: The purpose of this project is to help the establishment  of an Albanian Ombudsman Office and to assist the training of its staff in handling cases raised by the public. One of the main objective of the Office is to foster good governance and help reduce corruption among civil servants.

Project 2: This project aims at helping the General Prosecutors Office with training in combating organised crime and transnational crime, and at supporting the development of this Office. A number of workshops have been carried out and follow-up courses are planned for the rest of the period.

Project 3: This program helps fight corruption among judges by overseeing the functioning of the Judicial Inspectors Office.

Project 4: The aim of this program is to foster good governance and public participation by promoting a greater interaction between the local government of the Dibra County, the police, public prosecutors, courts, and the local civil society.

Partners:

Projects 1 and 3: The Organization for Security and Co-operation in Europe (OSCE), the World Bank.

Project 4: The United Nations Development Program (UNDP)

Implementing Agency Contact Information

Asiatisk Plads 2

1448 Copenhagen K

Tel: (45) 33 92 00 00

Fax: (45) 32 54 05 33

E-mail: um@um.dk or n6@um.dk

Implementing Agency

Die Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ)

Project

Technical Cooperation Program             

Objectives/Actions Taken(s)

GTZ Technical Cooperation program in Albania includes activities aimed to support and promote legal reform and the development of fair and transparent legal practices, especially in the field of commercial law.

Implementing Agency Contact Information

Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH
Dag-Hammarskjöld-Weg 1-5
65760 Eschborn

Tel: (49) 6196 79-0
Fax (49) 6196 79-1115

Implementing Agency

Die Deutsche Stiftung für internationale rechtliche Zusammenarbeit e. V. (German Foundation for International Legal Cooperation)

Project

Assistance in Legislative and Judicial Reform

Project duration

on-going

Budget

Euro 200,000

Implementing Agency Contact Information

MFA Berlin,

Deutsche Stiftung für internationale rechtliche Zusammenarbeit e.V.

Ubierstr.92, 53173 Bonn

Tel.: +49 228 95550

Fax: +49 228 9555100

Email: info@irz.de

Implementing Agency

Swiss Agency for Development and Cooperation (SDC)

Project

Balkan Enterprise Facility

Project duration

2000-2005

Project scope

Albania, Bosnia-Herzegovina, FYR Macedonia, Kosovo

Objectives/Actions Taken(s)

The project aims at facilitating the planning and preparation of business projects. The SDC allocates part of the budget dedicated to this program to ameliorate global business conditions, including the fight against fraud and corruption.

Partners

The International Finance Corporation (IFC), Budapest

Mr. Maxwell Aitken

Atrinova Building, Bajcsy Zsilinsky utca 42-46

Budapest V, 1054 Budapest, Hungary,Tel: (36) 1 374 9590

Fax: (36) 1 374 9597

E-mail: maitken@ifc.org

Implementing Agency Contact Information

Contact persons:

Paul Peter, Patrick Etienne and Gabriella Rozsnyai

 Swiss Agency for Development and Cooperation,

Effingerstrasse 77

3003 BERN

Tel: 41.31.322.44.05

Fax: 41.31.324.16.96

E-mail: patrick.etienne@deza.admin.ch

Implementing Agency

US Agency for International Development (USAID)

Project

Building Democracy

Project duration

on-going

Objectives/Actions Taken(s)

USAID Building Democracy program contributes to the fight against corruption by promoting the effectiveness, responsiveness and accountability of local governments, the strengthening of the rule of law, and the development of free media and civil society.

A major focus of USAID assistance efforts in 2000 will be to help the Albanian government to solidify the rule of law, including its fight against corruption and its need to reestablish control over its borders. Under the democracy goal, USAID will continue to support the development of democratic practices and institutions in Albania. Target beneficiaries include the Albanian Parliament, judiciary, and law enforcement bodies. The media, local government and the NGO sector will be highlighted in order to promote citizen awareness of and participation in the democratic process. In the fight against corruption, USAID will work with selected NGOs to help citizens realize they have a right to information on government operations, to mobilize public concern about corruption, and to press government to take corrective action. This civil society effort will complement activities in other areas to strengthen the rule of law, upgrade law enforcement bodies and regulate financial institutions.

Implementing Agency Contact Information

U.S. Agency for International Development
Ronald Reagan Building
Washington, D.C. 20523-0016

Tel: 202-712-4810
FAX: 202-216-3524
pinquiries@usaid.gov

Implementing Agency

US Agency for International Development (USAID)

Project

Civil Society Reduction of Corruption

Project duration

2000-2003

Objectives/Actions Taken(s)

A new 3-year project started on October 1, 2000 in Albania. The project is sponsored by USAID and implemented by Management Systems International (MSI) in cooperation with Albanian NGOs. The objectives of the project are to provide support to Albania civil society, its private sector and the government:

·         To increase the awareness of Albanian society regarding the causes and costs of corruption and to transform that awareness into advocacy for reforms

·         To engage civil society, business and government together in a non-adversarial partnership to take action to manage their common problem

·         To help civil society monitor the progress of these activities and reforms to fight and prevent corruption.

The project will support the formation of a coalition of civil society organizations (including business and the mass media) focused on the problem of corruption, the development of a civil society action plan, promotion of a public-private partnership to deal with the problem in a cooperative and non-confrontational way, and continuing assistance in the implementation of anti-corruption initiatives.

Implementing Agency Contact Information

Management Systems International
600 Water Street, S.W.
Washington, D.C. 20024
Tel: 202-484-7170
Fax: 202-488-0754

Sponsor Contact Information

U.S. Agency for International Development
Ronald Reagan Building
Washington, D.C. 20523-0016

Tel: (1 202) 712 4810 
FAX: (1 202) 216 3524
pinquiries@usaid.gov

Implementing Agency

US Agency for International Development (USAID)

Project

Privatisation and Banking Sector Reform

Project duration

2000

Objectives/Actions Taken(s)

USAID is working with the Ministry of Privatization to develop a closed-bid tendering system for the sale of four medium-sized public enterprises: a brewery, a pharmaceuticals company, a winery and a dairy processing plant. USAID's assistance aims at improving the transparency of the system.

As regards banking sector reform, USAID has an advisor in the Bank of Albania, who works closely with the Governor and his staff on supervision of the banking system, both off-site and on-site. This work is in direct support of the privatization of the banks. USAID, in partnership with other donors, also works to restore confidence in the banking system through providing assistance in the liquidation of financial institutions involved in failed pyramid schemes, which helped to politically destabilize the country in 1998.

Implementing Agency Contact Information

U.S. Agency for International Development
Ronald Reagan Building
Washington, D.C. 20523-0016

Tel: (1 202) 712 4810 
FAX: (1 202) 216 3524
pinquiries@usaid.gov

      

Implementing Agency

US Agency for International Development (USAID)

Project

Public Sector Transparency and Legitimacy

Objectives/Actions Taken(s)

USAID helps to strengthen governmental legitimacy by engaging sectors that have been completely excluded from decision-making and participation -- the citizenry. Reforms in this sector have attempted to bring in entire classes of people and interest groups to give them a powerful stake in ensuring that the transition will be successful.

The Democracy Network project ensured NGO involvement in the drafting of the democratic constitution adopted by referendum in late 1998. Through four NGO forums, numerous public hearings around the country and seven regional roundtables with the Parliamentary drafting commission, fully one-fourth of the provisions of the draft were improved.

Implementing Agency Contact Information

U.S. Agency for International Development
Ronald Reagan Building
Washington, D.C. 20523-0016

Tel: (1 202) 712 4810
FAX: (1 202) 216 3524
pinquiries@usaid.gov

 

             INTERNATIONAL NGOs

Implementing Agency

American Bar Association Central and Eastern European Law Initiative (ABA/CEELI)

Project

ABA/CEELI Legal Reform Program

Objectives/Actions Taken(s)

The goal of this program is to assist in strengthening the legal system, to develop local institutions that support judicial independence and to support the development of voluntary bar associations that work to improve the competence, ethics, and education of attorneys.
With USAID funding, ABA/CEELI has facilitated the creation of the GOA supported Magistrates School, which is intended to provide a pool of qualified candidates for appointments to the bench and procuracy. ABA/CEELI also helped develop and implement the first judicial competency testing in Albania. Future activities are likely to include the establishment of a self-disciplinary function by judges. The criminal law training of DOJ/OPDAT and ABA/CEELI, also funded by USAID, will soon have trained 250 prosecutors, judges and defense attorneys in criminal law and criminal procedures.

Implementing Agency Contact Information

ABA/CEELI
740 15th Street, NW
Washington, DC 20005-1022

Tel: (1 202) 662-1950
Fax:  (1 202) 662-1597
ceeli@abanet.org

 

 

 

 

Box 2.

FRIENDS OF ALBANIA GROUP

The Friends of Albania group was established in October 1998 under the joint chairmanship of the Presidency of the European Union and Organization fro Security and Cooperation in Europe. It brings together in an informal forum, bilateral donors, international organization that are active in providing Albania with financial support, technical assistance and other forms of aid, and other organizations that have an interest in International affairs. Friends of Albania meetings aim at better coordination between the international community and the Government of Albania.

Participants of Friends of Albania include:

Countries: Austria, Belgium, Bulgaria, Denmark, EU presidency, Finland, France, FYROM, Germany, Greece, Hungary, Ireland, Italy, Japan, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Russian Federation, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom; USA

Organizations: Council of Europe; Council of European Union - General Secretariat; European Bank for Reconstruction and Development (EBRD) European Commission; International Monetary Fund (IMF), NATO, OSCE, UNDP, Western European Union, World Bank.