Shocking Revelations: Albanian Central Bank Accused of Secretly Printing Money
Albanian Central Bank- A draft audit obtained by BIRN has unveiled severe allegations against the Bank of Albania. The audit accuses it of secretly printing money to finance the purchase of Tirana’s iconic Hotel Dajti and cover other questionable expenses.
Controversial Hotel Purchase: Opposition Outcry and Costly Renovations
In 2010, Albania’s then-prime minister, Sali Berisha, raised eyebrows by announcing the sale of the long-closed Hotel Dajti, a historic building from the 1940s. What shocked many was the buyer: Albania’s central bank, which paid 30 million euros for the property to use as office space. This sparked outrage from the opposition Socialist Party, which argued that the central bank’s involvement violated laws prohibiting it from funding government expenditures. Despite the backlash, then-governor Ardian Fullani proceeded with costly renovations totalling 18 million euros.
Fast forward to May 2023, when the renovated building was unveiled, and the Socialists, now in power, praised the restoration. However, a less favourable account emerged from a 2017 confidential draft report by Albania’s Supreme State Audit, recently obtained by BIRN. The report, though never officially released, alleges that the central bank printed money to fund both the hotel purchase and its renovation—a move that risks driving inflation and ultimately burdening consumers with higher prices.
Unanswered Questions: Allegations of Financial Mismanagement and Lack of Transparency
The draft audit also flagged additional irregularities, such as the Albanian Central Bank’s excessive spending beyond its income, a suspicious office rental agreement, and concerns over procurement practices, including purchasing luxury vehicles. Although the Albanian Central Bank has denied these accusations, calling the findings preliminary and subject to revision, questions linger about its financial practices under former governor Fullani and his successor, Gent Sejko.
The report also raises doubts about the Albanian Central Bank’s financial stability, particularly in light of Albania’s troubled history with economic mismanagement. Critics argue that the Albanian Central Bank prioritises government needs over the broader national economy, eroding its credibility.
“Adding to the controversy”, the audit discovered that the Albanian Central Bank continued to pay office rentals to a personal account rather than a company account, raising concerns of favouritism and improper conduct. Meanwhile, despite calls for transparency and accountability, the final audit report remains classified, fueling suspicions of a cover-up.
In a country still scarred by past financial crises, these revelations have sparked renewed debate about the integrity of the Albanian Central Bank and its commitment to serving the public interest.
