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Properties, report: Privatizations lag behind, damage also from "1 Euro" contracts that have not been respected

2025-07-04 08:47:00, Aktualitet CNA

Properties, report: Privatizations lag behind, damage also from "1

The management of state property continues to present various problems, resulting in economic damage to the budget.

A recent audit by the Supreme State Audit Office at the General Directorate of Public Property/Directorate of Privatization and Sales at the Ministry of Economy, Culture and Innovation finds that there are several aspects that need review.

Thus, according to the auditor, the directorates in question, during the period under analysis, have not drafted policies and action plans for the privatization of state-owned commercial companies, in the strategic and non-strategic sectors, as well as state assets.

It is also assessed that the state property monitoring structures during 2023 have not carried out an efficient process of monitoring lease contracts, with the aim of fulfilling their contractual obligations, including calculating and withholding penalties.

Another element is related to the balance sheets of public companies.

"Failure to timely approve financial indicators and financial statements of joint stock companies with 100% state capital under the administration of the ministry responsible for the economy, most of which result in losses, which deepen year after year. Lack of an analysis to highlight the factors that influence the deterioration of the financial situation of these companies with the aim of improving the situation," the audit states.

According to the report, there are at least 9 unmonitored companies declared in liquidation, which result in significant financial losses and difficulties, leaving them outside the attention of institutional decision-making, with consequences for the administration of the property they manage.

The auditors conclude that there are around 40 million euros in unpaid arrears of dividends which should be addressed to the Ministry of Infrastructure and Energy and the Municipality of Tirana.

Regarding privatizations, it is noted that there is a high number of objects for which, although years have passed since the initiation of the process (procedures that began in 2007), the privatization process has not been completed and has not resulted in the sale of the property.

The excessive length of the privatization process, coupled with the failure to publish properties in the privatization process for which approval has been obtained, risks maximizing their sale value and the timely and successful completion of the privatization process.

It seems that there were also problems with the "1 euro" contracts, which, despite not being respected, did not incur penalties.

"Negative effects from the failure to impose penalties on the implementation of "1Euro" lease contracts in the amount of 102,556 thousand lek. Missing income from the failure to collect rent obligations from tenant entities in the amount of 2,218 thousand lek. From the audit of the documentation for the administration and sale of the property, negative effects in the amount of 43,402 thousand lek have been caused to the state budget," the report states./ Monitor Magazine