FLASH
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The Supreme State Audit Office's report for the period January–August 2025 highlights serious financial violations with negative effects on the state budget totaling 2.4 billion lek. According to the Supreme State Audit Office, 112 million lek constitute direct economic damage, while over 2.29 billion lek are related to ineffective management of public funds, for which 148 recommendations have been given...
The Supreme State Audit Office has revealed an alarming picture of financial violations in public administration, finding negative effects on the state budget totaling 2,404,623 thousand lek during the period January-August 2025. According to the official report, 148 recommendations were given to central and local institutions, where 112,257 thousand lek constitute direct economic damage, while 2,292,366 thousand lek are related to ineffective management of public funds.
The report shows that the economic damage was found to be 57% in the area of expenses and 43% in the area of income. In expenses, 90% of the damage comes from violations in procurement procedures and contract implementation, including liquidations for unfinished works, works outside technical specifications and failure to calculate the final design costs, with a value of 57,445 thousand lek. Meanwhile, in income, about 96% of the problem is related to customs activity, where the SAI evidences non-collection of duties, unfair exemptions from VAT, incorrect assessments of imports and incorrect treatment of customs violations.
The list of institutions with violations is long. In the field of income and expenditure, the SAI identifies serious problems at the National Agency for Protected Areas, the Administrations of Protected Areas in Tirana, Kukës, Berat and Vlorë, the municipalities of Elbasan, Fier, Fushë Arrëz, Has, Maliq, Saranda, Shkodër and Tropojë, as well as at the General Directorate of Customs Rinas. Violations have also been found at the Albanian Investment Corporation, the General Directorate of Public Property, the “Luigj Gurakuqi” University of Shkodër, the Ministry of Finance, the Distribution System Operator, the Tirana Circus, the National Center of Cinematography and the School of Magistrates.
According to the report, in the area of revenues alone, ineffective management has found 1,768,832 thousand lekë, or about 77% of the total, mainly in local government for uncollected taxes and fees, non-application of interest on arrears for the use of public property, and uncollected obligations from environmental violations and illegal activities. In expenditures, violations amount to 523,534 thousand lekë, where a large part is directly related to public procurement and budgetary discipline.
The KLSH report once again raises strong questions about internal financial control, the accountability of institutional leaders and the lack of punishment for repeated violations, while the damage to the budget continues to increase from year to year. /Pamphlet
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