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Aktualitet2023-08-17 09:19:11

A businessman with his hands in his pockets, who earns 700 thousand euros a year

Shkruar nga Klodian Tomorri

A businessman with his hands in his pockets, who earns 700 thousand euros a year

Currently, sterilization costs Albanians 13.5 million euros per year, 50 percent more than the established value. And from this money disbursed by the budget, Mr. Rrapaj earns 700 thousand euros net after taxes, every year. With hands in pockets.   

In June 2015, the Albanian government granted the third concession in the health sector. This was the concession of sterilization of equipment that public hospitals use in surgical interventions.

The contract was won by a merger of 4 companies. They were Investital with 40 percent, Servizi Italia with 30 percent, Tencosanimed with 15 percent and U.JET with 15 percent. The last three companies are Italian, while the first one, which has the majority of shares, is owned by an Albanian immigrant named Ilir Rrapaj.

Having emigrated to Perugia, Italy, Mr. Rrapaj had no experience in the field of health. He had set up a small company there since the 2000s, which was active in the field of construction. But immediately after the victory of the Socialist Party in the 2013 elections, the businessman from Rexhepaj in Vlora returned to his homeland and his fate would change.

The largest shareholder without any financing

Known as a friend of the then former Minister of Health Ilir Beqja, Mr. Rrapaj managed to win the contract worth 140 million euros together with the other three companies. In order to realize the big contract, the four partners founded the company Saniservice in Albania. And the work started immediately.

To finance the activity in its first year, the company used a loan of 877 million lek (8.4 million euros at the current exchange rate), obtained from its owners. But the funding came only from the 3 Italian partners. Mr. Rrapaj's company, Investital LLC, which held the majority of the shares, did not disburse a cent.

Of course, lending by owners is a legal and recognized practice in financing the activity of a business. The loans that are taken are repaid from the income that the company generates through its activity. But in a venture with 4 shareholders, the one who does not finance has zero risk and just waits for the company to share the profits.

In this case, the profits were certain and the risk almost zero, since the concession was guaranteed by the state budget. In short, with his hands in his pockets, Mr. Rrapaj was just waiting for his turn to receive the profits from the company.

The big question is how a company, which does not contribute with financing and has no experience, manages to become the largest shareholder of a large concession?  

There are such cases in the world, when entrepreneurs started billion-dollar businesses from nothing. Google and Facebook are two classic cases. But those who built these companies are geniuses, who had ideas that revolutionized the world. Mr. Rrapaj's only asset was his acquaintance Ilir Beqjan and a photo with the Prime Minister of Albania.

When the tender was announced in 2015, its limit fund was set at 9.65 billion lek (92 million euros) for the entire life of the concession. In short, 965 million ALL per year for the 10 years of the contract.

But the limit value was broken in the first years because the contract had no upper ceiling. Within three years, the budget funding for the sterilization concessionaire reached 1.7 billion ALL per year or almost twice the limit fund.

Për të përmbajtur çmendurinë që po masakronte buxhetin e Fondit Kombëtar të Sigurimeve Shëndetësore, spitalet publike filluan të ndërprisnin operacionet duke i lënë pacientët në listë pritje. E megjithatë, sterilizimi nuk ngopej.

Në vitin 2020, pasi financat e shtetit u hodhën në tokë nga pandemia, ministrja e financave Anila Denaj kërkoi rinegocimin e koncesionit për t’i vendosur tavan shpenzimeve, që kishin dalë jashtë çdo kontrolli. Zonja Denaj, më parë kishte mbajtur postin e drejtoreshës së Fondit të Sigurimeve dhe ishte një nga njerëzit që e dinte më mirë se çfarë po ndodhte me kontratën.

The concession was renegotiated with a ceiling, certainly much higher than the limit fund determined when the contract was awarded. Currently, sterilization costs Albanians 13.5 million euros per year, 50 percent more than the established value. And from this money disbursed by the budget, Mr. Rrapaj earns 700 thousand euros net after taxes, every year. With hands in pockets.   

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