Albania’s corruption probe tests Rama’s rule and EU accession hopes

By Edward McAllister and Fatos Bytyci

TIRANA, Feb 19 (Reuters) - As protesters hurled petrol bombs at Albania's government building in central Tirana last week, and police responded with tear gas and water cannon, one chant rang out: "Rama go home! This corrupt government should resign!" 

Tensions had grown since the special prosecution office, known as SPAK, indicted Prime Minister Edi Rama's deputy, Belinda Balluku, in December on suspicion of interfering in the awarding of two construction contracts in 2021 worth more than 200 million euros.

Balluku, a rising star whom Rama appears to see as a potential successor, denies wrongdoing, and he has backed her throughout.

CORRUPTION CHARGES THREATEN ALBANIA'S EU DRIVE

But the fallout, compounded by a string of corruption scandals over the past year, has spiralled.

The persistent protests and the fact that the crisis involves one of his closest allies present a sizeable challenge for Rama, who has ruled the Balkan country since 2013, easily won re-election last year for the fourth time, and gets on well with leaders from Brussels to Washington.

It may also complicate his plan to join the EU by 2030.

"Albania has to understand that to become an EU member, respecting the rule of law is a prerequisite," said Andi Hoxhaj, a Balkan expert at King's College London. "That has to hit home, or it will not look good with the EU."

In response to questions from Reuters, Rama's spokesperson defended his record.

"Albania deserves to join (the EU) for many reasons and fighting corruption with no second thoughts is one of them," Manjola Hasa said.

Albania was locked away from the world for nearly 50 years under a communist regime that fell in the early 1990s. As in many parts of eastern Europe, the end of communism precipitated a period of rampant corruption.

However, judicial reforms in 2016, the formation of SPAK in 2019, and solid economic growth bolstered its case for EU membership.

Talks with the EU began in 2022 and on November 17 last year Albania opened the final round of topics for discussion as one of the frontrunners in the EU's project to expand into the Balkans.

Three days later, a SPAK press release announced Balluku's indictment. 

THE TUNNEL AND THE RING ROAD 

The allegations focus on two tenders in 2021 - one for the construction of a highway tunnel and another for part of a ring road around Tirana. Balluku, as infrastructure minister, is accused of steering the tenders to favour specific companies. 

The indictment, seen by Reuters, includes excerpts of text messages between Balluku and colleagues including the director of the Albanian Road Authority, who has also been indicted.

In one message on September 10, 2021, she appears to ask the director to meet with an official at NOVA Construction 2012.

Four days after the meeting, NOVA entered into a contract with two other companies to form a consortium, which then won the ring road contract.

SPAK said Balluku had "predetermined the winner" and "created unfair advantages and privileges".

Reuters was unable to determine whether the director met NOVA. The company did not respond to a request for comment, and neither did Balluku's lawyer.

Balluku, who was suspended by an anti-corruption court in November, said around that time that she would not comment on the case or on any "half-truths and lies".

RAMA ACCUSES ALBANIAN PROSECUTORS OF OVERREACH 

Meanwhile, SPAK's relations with Rama have sometimes been strained.

SPAK has asked for Balluku's immunity from pre-trial detention to be lifted, but Rama opposes this and accuses SPAK of overreach. On Monday he told lawmakers he had three times refused Balluku's offers to resign. 

"There is no such thing as a resignation under pressure from a power that has stepped outside its territory," he said as Balluku looked on. 

The same day, Rama announced that he planned to change the law to protect ministers from suspension while they are under criminal investigation, a move the opposition said was meant to protect him and his allies. 

The EU is watching.

"Rhetoric that sows public mistrust in the judiciary and in the independence, impartiality and integrity of the judicial and prosecutorial systems is counterproductive," the EU's office in Tirana said in a statement to Reuters. 

"Fighting corruption effectively is of paramount importance for Albania’s progress towards EU membership."

(Reporting by Edward McAllister in Athens and Fatos Bytyci in Tirana; Editing by Kevin Liffey)