Albania Funds Suspended. Freezes €112 Million in Albanian Agriculture Funds After Misuse Scandal.
TIRANA, July 21, 2024 – In a significant setback for Albanian farmers, the European Union has suspended €112 million in agriculture funds to prepare Albania for EU membership. The suspension follows revelations of widespread misuse of previous funds by Albanian government agencies, a scandal that has shaken confidence in the country’s ability to manage EU resources. The decision was communicated to the Albanian parliament this week, leaving the future of the IPARD III program shrouded in uncertainty and concern.
Albanian Agriculture Minister Faces Parliament Amidst Growing Scrutiny
Agriculture Minister Anila Denaj was called to explain the situation during a tense parliamentary session. Opposition MP Agron Shehaj led the charge, demanding answers on the delays in releasing the funds. Minister Denaj informed the parliament that the Albanian government has submitted an action plan to the EU, which is currently under review. This plan was a response to a report from the European Anti-Fraud Office (OLAF) that had uncovered significant irregularities in the previous IPARD II program, potentially leading to Albania being required to repay €33 million.
Minister Denaj attempted to downplay the severity of OLAF’s findings, claiming that the actual irregularities were much more minor. She also announced that she would hire an external auditor to ensure an independent review of the situation. Still, she warned that definitive figures would only be available once the audit was completed.
Politically Connected Entities Accused of Benefiting from Misused Funds
The scandal has drawn sharp criticism, notably after media reports revealed that many of the funds in question had been funnelled to entities with political connections to the ruling Socialist Party rather than to genuine farmers. These revelations were part of what prompted OLAF’s investigation. The misuse included inflated contracts, manipulated tenders, and demands for kickbacks from grant recipients. The previous agriculture minister lost their job in the fallout.
In response, Minister Denaj assured parliament that corrective actions have been taken, including the recovery of misused funds and restructuring of the responsible agency. However, the details of these interventions remain vague. The case has now been handed over to the Special Prosecution Office, which has launched its investigation into the scandal.
As Albanian authorities scramble to restore trust, the future of EU agriculture funding remains in jeopardy, casting doubt on Albania’s path toward EU integration.
