Balkan Farmers Struggle to Access Tens of Millions of Euros in EU Funds

In a response to BIRN questions concerning this story, the EU’s Office in Albania said that corruption in the country remains “widespread in many areas of public and business life” and that preventive measures “continue to have limited impact”.

In July 2023, when the bloc suspended funds for Albania under IPARD II, its executive arm, the European Commission, published a report stating that IPARD irregularities reported in Albania accounted for 33 million euros out of a total of 39 million euros reported lost by six participating states and which the commission considered the states financially responsible for.

“This was mainly due to four irregularities accounting together for about 31 million euros,” the Commission said. “Other irregularities involved much lower amounts, mostly below 100,000 euros, in some cases below 10,000 euros.”

Afrim Krasniqi, Director of the Institute of Political Studies in Tirana, said that all international donors expect some “loss of money” during a donation period, due to corruption, unaccounted HR expenses, political developments, etc.

“When this limit [of expected losses] is exceeded, i.e. the red line is crossed, the EU becomes concerned and intervenes at other levels of investigation,” he said. The IPARD II funds for Albania are a good example of the EU intervening when funds are misused, he said.

Corruption still a serious concern in Albania

Among the hundreds of beneficiaries of IPARD in Albania are a number known to have political and criminal connections.

They include Elvis Roshi, a former politician whose mandate as mayor of Kavaja was terminated after his criminal record was exposed, including a conviction for rape in Italy. In 2018, Roshi was sentenced to seven months and 15 days in prison for hiding his criminal record on his declaration form for public office, though he eventually avoided any jail time.

Having led Kavaja between 2011 and 2016, Roshi founded the agritourism company Kavaljon and, despite having limited experience in farming, twice secured IPARD grants.

According to official data from Albania’s Agency for Agriculture and Rural Development, AZHBR, Kavaljon won a contract in 2021 worth 8.5 million lek, or some 83,300 euros, for a citrus and sage plantation. But the company had to return an initial tranche of 41,676 euros due breach of contract.

The same year, in a second application under the name Bujtine Reconstruction, Roshi received an IPARD II grant of 21.8 million Albanian lek, or 214,000 euros.

Roshi was not the only beneficiary required to eventually return the funds. According to AZHBR data, 73 grantees have been asked to return the money they received. Legal proceedings were launched against 12 under IPARD II.