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Corruption cases with social impact in the Western Balkans and Turkey

Earthquake reconstruction case: Suspected misuse of funds by municipal workers

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  • Albania

Earthquake reconstruction case: Suspected misuse of funds by municipal workers

Case Date(s)
09/2023
Case Updated
10/2024

Case Summary

Phase

1st instance procedure

Offence

  • Abuse of functions
  • Illicit enrichment

Sector

  • Construction

Institution

  • Municipality of Rrogozhinë

Involved people

Allegedly involved people Xhemile Uku  Head of the youth and sports office
Xhemile Uku 
Politically exposed
No
  • Abuse of functions
Allegedly involved people Mario Meka Former municipal employee Rrogozhinë
Mario Meka
Politically exposed
No
  • Abuse of functions
Allegedly involved people Besim Ballabani Former municipal employee Rrogozhinë
Besim Ballabani
Politically exposed
No
  • Abuse of functions
Allegedly involved people Elton Levonja Former municipal employee Rrogozhinë
Elton Levonja
Politically exposed
No
  • Abuse of functions
Allegedly involved people Edlira Ramaj  HR specialist, municipality of Rrogozhinë
Edlira Ramaj 
Politically exposed
No
  • Abuse of functions
Allegedly involved people Edison Memolla Former mayor of Rrogozhinë
Edison Memolla
Politically exposed
Yes

Five officials from the municipality of Rrogozhinë were arrested for allegedly misusing government intended for funds reconstruction efforts after a major earthquake.

Five officials from the municipality of Rrogozhinë were arrested for allegedly misusing government reconstruction funds. These include Besim Ballabani (municipal employee), Xhemile Uku (head of the youth and sports office), Edlira Ramaj (HR specialist), Mario Meka (former municipal employee) and Elton Levonja (former municipal employee). In addition, 78 other individuals who allegedly benefited from the fraudulent scheme are under investigation. The case is now being handled by the special anti-corruption prosecution (SPAK), which is also looking into the potential involvement of higher-level officials, including the mayor of Rrogozhinë, Edison Memolla. The mismanagement has eroded public trust in institutions responsible for disaster recovery, leading to widespread frustration and protests. Furthermore, the scandal has intensified public scepticism toward governmental oversight and accountability, making future aid distribution efforts more difficult. Additional investigative details from Ora News indicate that the corruption scheme not only misallocated funds but also involved coercion of local officials to sign off on fraudulent applications.

The suspects are accused of falsifying at least 78 cases of reconstruction fund applications, inflating claims and approving payments for buildings that either were not damaged or were not used as housing, such as livestock shelters. This resulted in an alleged loss of ALL353 million (around €3.5 million) to the state budget.

According to the Durrës prosecution office, the five officials have been accused of committing the criminal offences of abuse of office, falsification of documents, and fraud concerning reconstruction funds, leading to a loss of ALL353,471,090 to the state budget. The alleged fraudulent scheme was reportedly carried out within the municipality of Rrogozhinë, a town in central Albania. The case was initially investigated by the prosecution office of Durrës before being transferred to SPAK due to suspicions of high-level official involvement.

The accused allegedly sought to illegally enrich themselves and others by manipulating the reconstruction fund distribution process. Some citizens who genuinely needed assistance reported not receiving support while fraudulent claims were approved. The corruption is believed to have involved both municipal workers and external individuals who collaborated to falsify documentation. Investigators discovered that documents were allegedly altered to misrepresent damage levels, and some files allegedly falsely included livestock shelters and undamaged buildings as homes eligible for financial compensation. Complaints from affected residents prompted the initial inquiry, leading to a full-scale investigation. As a result, the five officials were arrested, with three in pretrial detention and two under lighter security measures due to special circumstances; 78 additional people are under investigation for allegedly collaborating in the fraudulent scheme.

The case highlights systemic corruption risks in post-disaster reconstruction funding. It underscores the importance of transparency and accountability in managing public funds, particularly those designated for disaster relief. Investigations are ongoing, and further legal actions are expected as SPAK completes its inquiry.

Further details

JURISDICTION/COURT

Prosecution office of Durrës, which initially investigated the case, and SPAK, which has now taken over due to the suspected involvement of senior officials.

LAWS (ALLEGEDLY) BREACHED

Criminal code – Article 143,

UNCOVERING METHOD

Denouncement by a citizen: https://www.youtube.com/watch?v=_o4rGPMoL5M

PROSECUTOR

Elvin Gokaj

SOCIAL HARM ON SDGs

16 Peace, justice and strong institutions

Beyond financial loss, the scandal has caused significant social harm. Vulnerable citizens, including families displaced by the 2019 earthquake, have been left without essential housing assistance, exacerbating homelessness and economic hardship. The mismanagement has eroded public trust in institutions responsible for disaster recovery, leading to widespread frustration and protests. Furthermore, the scandal has intensified public scepticism toward governmental oversight and accountability, making future aid distribution efforts more difficult. Additional investigative details indicate that the corruption scheme not only misallocated funds but also involved coercion of local officials to sign off on fraudulent applications.

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 <CASE UPDATED>. Nevertheless, Transparency International cannot accept responsibility for the consequences of its use for other purposes or in other contexts.

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