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5D case: Senior public officials accused of embezzling public contract funds

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  • Albania

5D case: Senior public officials accused of embezzling public contract funds

Case Date(s)
04/2023
Case Updated
03/2025

Case Summary

Phase

1st instance procedure

Offence

  • Bribery of public officials
  • Illicit enrichment
  • Laundering of proceeds of crime

Sector

  • Water supply; sewerage, waste management and remediation activities

Institution

  • Municipality of Tirana

Involved people

Allegedly involved people Redi Molla Former administrator of the Tirana Water Supply public company
Redi Molla
Politically exposed
Yes
  • Bribery of public officials
  • Illicit enrichment
  • Laundering of proceeds of crime
Allegedly involved people Mariglen Qato Former administrator of the Tirana DC public company Former head of territorial protection inspectorate
Mariglen Qato
Politically exposed
Yes
  • Bribery of public officials
  • Illicit enrichment
  • Laundering of proceeds of crime
Allegedly involved people Taulant Tusha Former head of public works department in Tirana municipality
Taulant Tusha
Politically exposed
Yes
  • Breach of equality of participants in public procurements
Allegedly involved people Enton Punavija Former head of road transport department
Enton Punavija
Politically exposed
No
  • Breach of equality of participants in public procurements
Allegedly involved people Julian Zanaj Official in Tirana municipality
Julian Zanaj
Politically exposed
No
  • Breach of equality of participants in public procurements
Allegedly involved people Albano Janku Official in Tirana municipality
Albano Janku
Politically exposed
No
  • Breach of equality of participants in public procurements
Allegedly involved people Eglantina Zere Former administrator of the Tirana Parking public company
Eglantina Zere
Politically exposed
Yes
  • Breach of equality of participants in public procurements
Allegedly involved people Debroah Keçi Former head of Sports Club Tirana
Debroah Keçi
Politically exposed
Yes
  • Breach of equality of participants in public procurements
Allegedly involved people Nestor Muhametllari Former administrator of private company 5D Construction; De jure owner of 5D Construction
Nestor Muhametllari
Politically exposed
No
  • Bribery of public officials
  • Laundering of proceeds of crime

Senior officials of the Tirana municipality owned a company registered under the names of other individuals and awarded contracts to themselves in procurement procedures where they announced the call, evaluated the offers and signed the contracts. The 5D Construction affair is regarded as one of the most sophisticated abusive schemes, which spread and operated for years within a large network of this municipality and uncovered by the special prosecution office.

In March 2024, the special prosecution office issued three arrest warrants for senior officials of the municipality of Tirana, Redi Molla, Mariglen Qato and Taulant Tusha (already in prison for the incinerator case), and requested the appearance to the judicial police of five other municipal officials and the administrator of a private company.

Most of the investigations into this case are closed and, in December 2024, the special prosecution office sent for trial on charges of corruption, money laundering and false declarations the former director of the public company Tirana Water Supply, Redi Molla, and the former head of territorial protection inspectorate, Mariglen Qato. Taulant Tusha, former director of public works department in Tirana municipality, is accused of breaching the equality of participants in public procurements, along with other officials Enton Punavija, Julian Zanaj, Albano Janku, Eglantina Zere and Debroah Keçi. Nestor Muhametllari, owner de jure and former administrator of the company‘5D Konstruksion, is accused of active corruption of public officials and money laundering. 5D Construction’s assets has been frozen and the entity is accused of active corruption and money laundering.

The scheme called 5D by its whistleblower Belind Këlliçi, a former candidate of the opposition DP party for mayor of Tirana in the 2023 local elections, relates to the alleged establishment of a private company by directors of the municipality who had placed other persons as owners on paper to avoid the law on conflict of interest. The company is alleged to have won dozens of public contracts in institutions run by its directors, initially under the name Igor Elektrik, then V.A.S. Konstruksion and finally 5D, which according to whistleblower Këlliçi, was linked to the implication that it was owned five directors of the Tirana municipality. The prosecution’s investigations found that there were in fact two directors of municipality that had ownership of 5D Construction, Redi Molla and Mariglen Qato, and they were allegedly helped by their colleagues to obtain the contracts.

According to the financial analysis of the prosecution's office, 5D Construction generated revenues worth €20 million from 2016 until 2022. Most of this came from public contracts related to institutions headed by Molla and Qato. As the institution’s heads, they allegedly issued orders to appoint the members of the procurement unit to evaluate the offers and signed the contract themselves.

The money obtained from public contracts was allegedly used to extort money from the company through fictitious invoices and to go as cash into the pockets of the real owners. Another part of the money obtained from public contracts was allegedly used in building residences in the capital, where the procedure of issuing the buildings permit’s was suggested by the court to be seen as a conflict of interest. In another episode, former directors of the municipality of Tirana allegedly became partners in a hotel business in the coastal city of Durrës, an investment that worth €15 million. They are also accused of taking the ‘special’ status from the Ministry of Tourism, which excludes the investors from most of local taxes and the profit tax.

Other suspected members of the scheme are accused of collaborating and favouring the 5D company in public bids. According to documents seized by the special prosecution office, it appears that in various institutions, the evaluation of offers was not done by officials but by 5D Construction’s employees and in many cases they allegedly communicated with its employees to find legal arguments on how to exclude other operators who had given the better offers from the competition.

Further details

JURISDICTION/COURT

Special court against crime and corruption

LAWS (ALLEGEDLY) BREACHED

Criminal code, Article 260 (Passive corruption of high state officials or local elected officials); Article 25 (In cooperation).

Criminal code, Article 244 (Active corruption of public officials).

Criminal code, Article 287 second paragraph (Cleaning of the criminal offence or criminal activity products).

Criminal code, Article 257/a second paragraph (Refusal to declare, non-declaration, concealment, or false declaration of assets, private interests of elected officials and public employees, or any other person with a legal obligation to declare).

Criminal code, Article 258 (Breach of equality of participants in public procurements), Article 25 (In cooperation).

Law of Public Procurement, Article 2 and Article 3.

UNCOVERING METHOD

Public denunciation by the opposition

Investigative journalism

PROSECUTOR

Klodjan Braho

JUDGE

Judge of the first instance special court against corruption and organised crime_ Rudina Palloi

Judge of the second instance special court against corruption and organised crime_ Florjan Kalaja

DEFENCE COUNSEL

Ermir Beta

Ardian Visha

Ermal Yzeiraj

SOCIAL HARM ON SDGs

3 Good health and well-being

8 Decent work and economic growth

10 Reduced Inequality

The '5D Construction' case alleges a violation of the principle of equality in public procurement. The accusations state that the company has unfairly benefited from public contracts, harming competitors and undermining efforts to reduce inequality. The laws, if breached, have potentially also affected the ability of other firms in the market to operate effectively, hindering economic growth and development in a competitive environment based on meritocracy. At the same time, public welfare has allegedly been harmed, as the money earned through contracts with the municipality of Tirana has not been used to assist citizens but has instead allegedly been illegally profited from by the municipality’s directors.

According to the investigation, the company 5D Construction that was de facto owned by high officials of Tirana municipality received contracts to the value of €20 million (ALL2 billion) and has made a net profit of €2 million (ALL200 million).

Disclaimer

Every effort has been made to verify the accuracy of the information contained in this database. All information is believed to be correct as of 03/2025. Nevertheless, Transparency International cannot accept responsibility for the consequences of its use for other purposes or in other contexts.

Additional Material

The opposition Democratic Party (DP) has organised protests in front of Tirana municipality demanding accountability and investigations at all levels. Until now, 44 protests have been held.

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