Linking ownership of shell companies to fugitives, SPAK seizes Tirana’s waste incinerator, setting stage for more corruption charges
Story Highlights
- The corruption case involving these incinerator contracts has put several high-profile figures under scrutiny, including former Minister of Environment Lefter Koka and former Deputy Prime Minister Arben Ahmetaj, who is currently an international fugitive.
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TIRANA, Aug. 8, 2023 - Special Prosecution Office Against Organized Crime and Corruption (SPAK) has ordered the seizure of the company operating the Tirana waste incinerator, following similar earlier action in Elbasan and Fier.
The move marks a significant development in one of Albania's largest corruption cases ever and could set the stage for more corruption charges to be levied against public officials suspected of being involved in the affair. The case has already resulted in the arrests of a former minister and a former MP, and it has a former deputy prime minister on the run.
SPAK prosecutors say they believe that Klodian Zoto and Mirel Mërtiri are the "de facto" owners of all the companies involved with the Tirana incinerators. The two men are wanted on several charges, accused of issuing millions of euros in forged invoices paid for by taxpayer funds.
In a press release, SPAK said a preliminary investigation has unearthed compelling evidence against Zoto and Mërtiri, implicating them as the hidden owners of the concession company, Integrated Energy B.V. SPV sh.p.k, which controls the Tirana incinerator.
Additionally, SPAK believes they are also the true owners of the parent company, originally registered in the Netherlands as "Integrated Energy B.V," later renamed "Geogenix B.V."
The two business owners stand accused of using various individuals and entities to conceal their ownership of the concession companies. The forged invoices amounted to nearly 4 million euros, a sum believed to have been fraudulently obtained by Zoto and Mërtiri through their involvement in two other waste treatment plants in Elbasan and Fier.
The SPAK has secured the court's approval for the seizure of both the concession company in Tirana and Zoto's company, Integrated Technology Services, which was previously subjected to seizure measures for the Fier case.
-Latest move in a long-running process-
The SPAK also placed a 611 square meter property, worth 1 million euros and registered under the company F.M.O., under preventive seizure, suspecting that Zoto and Mërtiri indirectly own this company. The acquisition of assets for F.M.O. sh.p.k was allegedly funded through ill-gotten gains.
These investigations come six years after the contract for the Tirana waste treatment plant was signed with the Albanian government, yet only the landfill is operational, while construction on the incinerator has not even begun.
The corruption case involving these incinerator contracts has put several high-profile figures under scrutiny, including former Minister of Environment Lefter Koka and former Deputy Prime Minister Arben Ahmetaj, who is currently an international fugitive. Other notable figures from central and local institutions have also been listed as defendants, and the investigation is expected to expand further.
-Opposition accuses of PM and Tirana mayor of involvement-
The news of the seizure has been welcomed by the opposition, which has long been at odds with Prime Minister Edi Rama's government over the incinerator projects. Despite the ongoing investigations and legal challenges, Rama has publicly defended the incinerator initiatives.
The opposition has also accused Tirana Mayor Erion Veliaj of being involved in the affair by greenlighting the construction of the Tirana incinerator through what the opposition says were improper procedures.
"The truth about the incinerator affair will be revealed in its entirety, and above all, the real owners of the Tirana incinerator will be exposed, whom everyone now knows to be Erion Veliaj and Edi Rama,” said Belind Kellici, the defeated opposition candidate for mayor of Tirana. “Veliaj indeed seized the mandate for a third term as Mayor of Tirana through corruption money, but the traces he left cannot be erased by time or his pressure on justice."
Veliaj took to Twitter to dismiss the allegations as baseless.
"The hysteria from the mudslinging portals only shows that the mud-slingers … haven't realized yet that we are in a different era," he wrote.
Veliaj added that he sees SPAK’s seizure of Tirana's incinerator and the removal of the private operator from the waste management facility as a much-welcomed step towards exposing any unlawful activities that may have harmed public interest.
With the SPAK's investigation still ongoing, this latest move signifies a significant step towards bringing transparency and accountability to the waste management projects in Tirana and other cities. The authorities are determined to shed light on any illegal practices that have compromised public interests.
The situation remains fluid, and more updates are expected as the prosecution proceeds with its inquiries. The future of these incinerator projects hangs in the balance as the legal battle continues.
