Business Corruption

According to the US Department of State 2010, companies in Albania continue to experience issues with transparency in competing for public tenders. This occurs despite the transparency provisions of the public procurement law and the introduction of e-procurement. According to the report, the legislation's application is hampered by a number of problems, including corruption in drafting tender documents. 

The US Department of State 2008 cites a case of corruption in the procurement process for the reconstruction of the building of the Ministry of Labour. Two high-ranking officials of this Ministry were sentenced to prison together with the owner of a construction company for corruption in the tender process and for forcing the other competitors to withdraw their bids. In order to mitigate the corruption risks associated with public procurement in Albania, investors are advised to exert caution when bidding on public tenders, and are therefore recommended to use a specialised public procurement due diligence tool.

Read more on public procurement under 'Public Anti-Corruption Initiatives' in the Initiatives section.

Political Corruption

Global Integrity 2008 cites the Minister of Public Health acknowledging that procurement within the health sector is riddled with corruption.

According to the US Department of State 2008, the deputy minister of public works, several private companies and other high-ranking public officials were involved in a scheme for fixing construction procurement bids. The involved persons were found guilty in May 2008 and sentenced to prison or fined.

In a Ministry of Defence procurement fraud case in 2009, three out of four defendants were convicted, including the resource management director Shkelzen Madani. The latter was convicted of passive corruption and falsification of documents, sentenced to two-and-a-half years in prison, given a USD 18,000 fine, and prohibited from holding public office for one year. The convicted officials received an estimated USD 2,800 in bribes for each ammunition import and export licence that the Ministry of Defence issued to civilian entities. Two other defendants were convicted and sentenced to less than two years' imprisonment, according to the US Department of State 2009.

Frequency

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the diversion of public funds to companies, individuals, or groups due to corruption a score of 3.6 on a 7-point scale (1 'very common' and 7 'never occurs').

- Business executives give the favouritism of government officials when deciding upon policies and contracts a score of 3.1 on a 7-point scale (1 'always show favouritism' and 7 'never show favouritism').

The World Bank & IFC: Enterprise Surveys 2009:
- 53.8% of companies expect to give gifts in order to secure a government contract. The figure is the second highest in the Eastern Europe & Central Asia region.

- The average value of a gift expected to secure a government contract is 4.4% of the value of the contract. The figure is the third highest in the Eastern Europe & Central Asia region.