In 2018, former minister of agriculture, forestry and rural development, Nenad Rikalo, was charged alongside seven other ministry officials with abuse of office related to the alleged misuse of government funds intended for agricultural projects. Rikalo was accused of creating a special programme that illegally awarded grants, outside standard procedures, to certain private companies, specifically for rural development projects in North Mitrovica. Initially convicted by a first-instance court in 2023, Rikalo was acquitted in 2024.

In 2018, the Kosovo Ministry of Agriculture, Forestry and Rural Development, under the then-minister Nenad Rikalo – a member of Srpska Lista, the main Kosovo Serb party – launched a €2 million grant programme aimed at boosting agricultural development in North Mitrovica, a predominantly Serb municipality. The programme soon came under public and media scrutiny due to alleged inconsistencies with standard policy practices.

Media reports (see here and here) noted that the grant programme violated Kosovo’s national plan for agriculture and rural development, which prohibits agricultural funding programmes from favouring specific regions or municipalities at the expense of others. The ministry’s call for applications, titled Special Program for Investments in Rural Infrastructure and Raising Competitiveness in the Agriculture and Forestry Sector Through Community Involvement in Rural Development in the North Mitrovica Region, raised concerns by targeting North Mitrovica exclusively. Allegations of additional irregularities in the programme led the special prosecution of Kosovo to open an investigation into potential abuse of public office and unlawful distribution of state funds.

In February 2019, in the wake of the unfolding scandal, Rikalo was dismissed from his role as Kosovo’s minister of agriculture. Only weeks later, he was appointed as state secretary of Serbia’s Ministry of Agriculture, Forestry and Water Management.

On 26 December 2019, Kosovo’s special prosecutor’s office filed an indictment with the special department of the basic court in Pristina. The prosecution charged former minister Nenad Rikalo and seven other ministry officials with abuse of official position and authority. The indictment claimed that, through their actions, the defendants damaged Kosovo’s state budget by an estimated €4 million. According to the indictment, in 2018, Rikalo, along with three other defendants, intentionally enabled certain companies to unlawfully access grants through a special programme, in violation of Kosovo’s Law on Agriculture and Rural Development along with other regulations.

The indictment alleged that Nenad Rikalo, in his capacity as minister of agriculture, forestry and rural development, exceeded his authority by unilaterally creating a special programme for rural development. Despite lacking a dedicated budget for the programme, Rikalo determined the grant criteria, the regions eligible for funding and the amount of the grant.

Specifically, on 26 March 2018, Rikalo issued a decision to devise a programme aimed at developing rural infrastructure and boosting competitiveness in North Mitrovica, funded through a €2 million public call for applications. Rikalo personally finalised and submitted the programme, while a working group commission was established for merely formal reasons.

The indictment further argued that another defendant, Kapllan Halimi, in his capacity as secretary general of the ministry, exceeded his authority by unlawfully issuing a decision that allowed several companies to access the grants in question. He also established the working group commission to oversee the rural development investment, despite being aware that this group was not qualified to draft the programme. Allegedly, he also knew the group was purely a formality as the draft had already been prepared by Minister Rikalo.

Overall, these actions allowed multiple companies to receive lucrative contracts allegedly without meeting legal requirements, causing a financial loss estimated at around €4 million to the Kosovo budget.

On 12 March 2020, a preliminary hearing was held at the basic court in Pristina, during which the accused pleaded not guilty. On 21 October 2020, the basic court of Pristina confirmed the indictment, despite requests from the defendants to dismiss it. In January 2021, the court of appeal upheld the indictment against Rikalo and the other accused.

The main trial eventually began in April 2021. Two years later, on 01 June 2023, the basic court in Pristina sentenced Nenad Rikalo to three years in prison and Kapllan Halimi to two years and six months. Additionally, both men were barred from holding public office for three years following the completion of their sentences. Conversely, the remaining six defendants in the case – Shefki Zeqiri, Ekrem Gjoka, Shkelzen Morina, Leon Thaçi, Lindar Krasniqi and Albana Zeqiri – were acquitted. The court determined that the evidence presented was insufficient to prove their involvement in the criminal offences outlined in the indictment.

In response to the verdict, the dissatisfied parties appealed to the court of appeal. On 23 June 2024, the court of appeal acquitted Nenad Rikalo and Kapllan Halimi of corruption charges, ruling that their actions did not meet the criminal intent required for ‘abuse of official position’. The court found no evidence linking the defendants directly or indirectly to the companies involved or to any intent to enable illicit gains. The ruling also upheld the acquittal of the other officials implicated in the case.

This case raises concerns about transparency, integrity and accountability within public institutions, especially in the management of state funds allocated to development programmes. The final acquittal of the defendants also underscores the challenges faced in countering corruption within Kosovo's public sector and prosecuting high-ranking officials. Stronger oversight mechanisms and greater public and media scrutiny can promote the equitable allocation of state funds. This would help ensure that public resources benefit the entire country rather than a specific group or region.