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In Albania, the European Union Delegation informed Voice of America that the European Commission has put on hold the start of the implementation of the IPARD III Program to support Albanian agriculture. This decision follows the suspension of reimbursements in July under the IPARD II program, after investigations into corruption allegations related to its implementation. The report prepared by the European Anti-Fraud Office (OLAF) has been submitted to the Albanian authorities, from whom the Commission expects a serious approach to this matter.
When the European Commission temporarily announced in July of this year the suspension of reimbursements to the Albanian government for project finances in agriculture under the IPARD II Program, the Ministry of Agriculture treated the case as an administrative matter.
Although Brussels made it clear that the measure was taken after an investigation into corruption allegations related to the program's implementation, the authorities presented everything as "the European Union's normal procedure when there is a need to verify expenses suspected of activities not conforming to defined rules."
This approach was maintained in parliament, and the Minister of Agriculture at that time, Frida Krifca, the former director of the Agency for Agricultural and Rural Development (AZHBR), which administers the funds of the European program, treated the case as an administrative matter. Less than two months later, Ms. Krifca left the government cabinet.
The OLAF investigation has concluded, and the European Commission has presented it to the Albanian authorities, who have the right to reject it and provide justification or offer counterarguments. "Once the Commission receives a response from the authorities, we will assess the need for any further action. Since we are dealing with EU taxpayers' money, we expect the Albanian authorities to take this matter very seriously," the response from the European Delegation in Tirana to Voice of America states.
The situation does not seem as straightforward as the Albanian authorities have tried to present it. In addition to the suspension of IPARD II funds, the start of the implementation of the next phase, IPARD III, with a value of over 140 million euros, has been suspended.
"Since July 2023, the European Commission has suspended the reimbursement of IPARD expenses for Albania. Currently, the suspension is related to expenses incurred during the first and second quarters of 2023. At the same time, the European Commission has put on hold the approval for all IPARD III measures. These are temporary preventive measures to protect the financial interests of the European Union," explains the response from the EU Delegation in Tirana.
Voice of America contacted the Ministry of Agriculture for information on the position of the Albanian side regarding the IPARD III Program but received a vague response without any explanation, as if everything were following a normal course.
In fact, the Albanian authorities had anticipated that IPARD III would start in January, but they have not yet been entrusted with the duties of implementation or reaccreditation. Brussels' stance is clear: "The European Union is ready to continue supporting Albanian farmers, the agri-food sector, and rural areas in the future, provided that the financial interests of the European Union are adequately protected."
In the progress report for Albania this year, when it comes to "Protecting the financial interests of the EU," it is highlighted that the country has made little progress in this area and "needs to improve cooperation with the European Commission for investigations."
In 2022, 71 cases of suspected irregularities and fraud were reported in the IPA and IPARD programs. According to the document, "Albania must increase its efforts to establish a sustainable track record in cooperation with investigations, offering effective operational assistance to OLAF investigators, among other things."