One of the most problematic sectors in the area of economic damage reported by the High State Audit (SSA) over the years is that of the sale and lease of state property. Open Data Albania has conducted a research on the performance of this indicator in the years 2080-2012. It should be mentioned that this type of damage can be manifested in various forms, but mainly it comes as a result of the calculation or the wrong application of the tariffs of lease of the public property, the rent-free use of public facilities or delays in the payment of fees, wrong calculation of the sale price and the sale of facilities in violation of the legislation in force. The following chart provides an overview of the performance of this indicator for the period taken under consideration.

Source : Supreme State Audit
Processing and comments: ODA

The highest level of economic damage in the rental and sale of public property sector was recorded in 2009, with about 3.1 billion all or 43 % of the total economic damage of that year. Great part of it, about 2.6 billion or 83 % is caused by Albpetrol JSC. While 538 million were reported as caused by the Ministry of Environment, result of the non calculation and non consideration of the lease of 23.25 ha forest fund as an obligation to the state.

Interestingly, the years 2010 and 2011 show the presence of damage to the sector of national forest funds. Thus, in 2010 it was reported a economic damage of 127.346 million all or about 82 % of all economic damage to this sector, mainly due to the non-calculation and non-collection of revenues from the utilization of 99.4 hectares of forest fund (65.8 million), non-calculation and non-collection of fines associated with the damage caused to a 6312 m2 forest fund used to build commercial bars (45.9 million) and damage to public forest fund (1810 m2 worth 13 million.

In 2011, the damage reported in favour of the Directorate of Forests and Pastures in the Ministry of Environment went to 342 million or about 2.5 times higher than a year ago. In relation to the total budget of the Ministry of Environment in 2011, this damage would be about 20%, while in relation to the amount of funding for the program “Management of Forests”, the value would amount to 38.8 %. This situation report from SSA once again raises the alarm over the use, exploitation and protection of the national wealth of forests and pastures, which are threatened more and more.

The year 2012 recorded an increment of about 90 % of the damage in the rental and sale of public property, ranked so as the second most problematic sector in causing economic damage. Most of this damage belongs to the Ministry of Economy, Trade and Energy, amounting to about 606.9 million in concessionaires. Most of the damage, about 595 million or 98 %, was due to the non-appliance of penalties for violation of the terms of concessionaire contracts and due to the non appliance of the procedures for the collection of the damage. Meanwhile, as subjects with high economic damage were reported also the Municipality of Lac with a value of 28.1 million all and the Ministry of Transport and Public Affairs with 15.3 .

In these conditions, the high values reported over the years by SSA and their growing tendency give evidence of the public property being used for personal interests, from the local government, as well as from the central government. These high values give also evidence for a non effective administration of the public property.

The following chart gives the weight of this sector to the total damage reported over the years, and also in relation to the total expenditure of the State Budget for each year and GDP.

Source : Supreme State Audit
Processing and comments: ODA

  1. The data on the economic damage for the years 2008-2012 were obtained from the SSA Annual Report for each respective year.
  2. The data of total expenditure for the State Budget were obtained from the Fiscal Bulletin for last 4 months of each year.
  3. The GDP data refer to DCM. No.1, dated 23.01.2013 “On approval of the macroeconomic and fiscal framework for the period 2014-2016”