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Corruption cases with social impact in the Western Balkans and Turkey

SASPAC case: Former health minister investigated for procurement irregularities

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  • Albania

SASPAC case: Former health minister investigated for procurement irregularities

Case Date(s)
07/2024
Case Updated
12/2024

Case Summary

Phase

Investigation

Offence

  • Bribery of public officials
  • Concealment

Sector

  • Administrative and support service activities

Involved people

Allegedly involved people Ilir Beqaj Director of State Agency for Strategic Programming and Aid Coordination (SASPAC)
Ilir Beqaj
Politically exposed
No
  • Concealment
Allegedly involved people Ermal Kurtulaj Coordinator for EUSAIR facility point
Ermal Kurtulaj
Politically exposed
No
Allegedly involved people Gazmend Haxhia Owner of Landways International company
Gazmend Haxhia
Politically exposed
No
  • Bribery of public officials
Allegedly involved people Alfred Nikolla Executive director Landways International
Alfred Nikolla
Politically exposed
No
  • Bribery of public officials
Allegedly involved people Elton Marini Nine Services Int.
Elton Marini
Politically exposed
No
  • Bribery of public officials
Allegedly involved people Bledar Leka
Bledar Leka
Politically exposed
No
  • Bribery of public officials
Allegedly involved people Bjona Ziaj Financial consultant
Bjona Ziaj
Politically exposed
No

As the head of the State Agency for Strategic Programming and Aid Coordination (SASPAC), the former minister of health, Ilir Beqaj is accused of misusing EU funds by orchestrating fictitious procurement procedures. These funds were allegedly funnelled to his own private business, Gzona Restaurant, via fictitious invoices from the companies that were contracted for the services.

On 4 July 2024, the Special Prosecution against Corruption (SPAK) arrested Ilir Beqaj, a former minister of health and head of the State Agency for Strategic Programming and Aid Coordination (SASPAC). Beqaj is accused of orchestrating fictitious procurement procedures between 2022 and 2023 in collaboration with Ermal Kurtulaj, Albania's coordinator for the EUSAIR programme. Beqaj had previously served as a member of parliament for the ruling Socialist Party and as minister of health from 2013 to 2017. From 2021 to 2023 he led SASPAC, the agency responsible for overseeing the EU funds allocated to Albania.

According to SPAK, at least eight services were procured during the Future of Sustainable Environmental Tourism in Albania (FESTA) conference and the 2023 energy conference. These services were allegedly not subjected to regular procurement processes; instead, it is suspected that the winner was pre-determined well before the formal procurement was conducted. Consequently, the procurement procedures were allegedly later carried out for documentation and payment purposes.

For instance, the procured service for the organisation of the conference on 3 to 4 April 2023 for the Future of Sustainable Environmental Tourism in Albania FESTA Technical Assistance IPA CBC, Adrion Project, with a value of €125,000 was the same as the one service procured by the Ministry of Tourism and Environment (with a contract value of ALL38,509,550 or €390,536) for the same event, called Festa. In both cases, it was contracted to the same company, Landways International, owned by Gazmend Haxhia.

The funds obtained through these procedures were allegedly funnelled to his own private business, Gzona Restaurant via fake invoices from other private companies. These companies, owned by Gazmend Haxhia, Alfred Nikolla, Elton Marini and Bledar Leka (natural person) were contracted for event organisation by SASPAC. Afterwards, they were alleged to have provided an irregular benefit in the form of purchasing services from Gzona. Although Beqaj’s wife was listed as a 15% shareholder in the restaurant until 2020 – when she transferred her shares to another partner – it is alleged that Beqaj remained the actual partner and continued to control the business while leading SASPAC.

Ilir Beqaj is suspected of having invested at least €21,411 in 2019 in this company, in the form of equipment (assets) purchases and €34,783 in expenses, such as rent and others, without declaring them as loans to the company. His financial interests in this restaurant were exercised through Ermal Kurtulaj, who managed them, having been employed at the restaurant since its establishment, but allegedly without being declared as an employee to the tax authorities. In addition, Beqaj is suspected to have concealed a movable asset, a vehicle purchased on 6 September 2019, in the name of a person under investigation, Ermal Kurtulaj.

On 30 December 2024, the special court against corruption and organized crime extended the detention period for three-months in relation to the security measure “arrest in prison” for Ilir Beqaj and Ermal Kurtulaj, approving thus the request of SPAK to extend the investigation period.

In addition to the investigation for the misuse of SASPAC funds, Beqaj faces charges of abuse of office related to a concession contract for surgical instruments. In 2021, despite ongoing investigations into his involvement in healthcare concession contracts, Beqaj was appointed head of SASPAC by prime minister Edi Rama.

Further details

JURISDICTION/COURT

Special court against corruption and organized crime

LAWS (ALLEGEDLY) BREACHED

Passive corruption of high-ranking state officials, committed in cooperation, as provided by Article 260 and 25 of the penal code

Passive corruption of individuals who hold public office, Article 259

Active corruption of high-ranking public officials, as provided by Article 245 of the penal code

Refusal to declare, failure to declare, concealment or false declaration of assets, private interests of elected persons and public officials or any other person who has a legal obligation to declare, as provided by Article 257/a/2 of the penal code

Fraud committed in cooperation, with serious consequences, as provided by Articles 143/2/3 of the penal code

Violation of the equality of participants in tenders or public auctions

UNCOVERING METHOD

Special Prosecution against Corruption and Organized Crime (SPAK)

DEFENCE COUNSEL

Ermal Yzeiraj

SOCIAL HARM ON SDGs

1 No Poverty

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