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Balliu denounces favoritism and security risks, Nufi defends the model of cooperation with the private sector
Democratic MP Klevis Balliu raised accusations against Defense Minister Ermal Nufi over the way the state-owned arms production company, KAYO, is operating.
During the parliamentary session where the interpellation with the Minister of Defense regarding the KAYO company was also held, Balliu stated that this structure is being used to favor people connected to Prime Minister Edi Rama and that the situation negatively affects national security.
Balliu said that KAYO is collaborating with low-capital companies, questioning their seriousness in the military industry. According to him, these partnerships are related to projects aimed at modernizing the army.
He brought as an example the company TIMAK Defence, created by KAYO and Timak, and stated: "49% of this company is sold to a person Jon Jefet, a friend of Edi Rama, a man who collaborates with top-level Russian businessmen, a man who is under investigation for corruption. This man buys 49% of this company for only 450 euros. After 4 months he received 10.5 million euros from the Ministry of Defense."
According to the Democratic MP, KAYO is also connecting with companies that are banned or under investigation for corruption in some NATO countries.
However, Minister Nufi refuted these claims and stated that the company's activity aims to increase the country's defense capacities. He emphasized that cooperation with the private sector is not a new practice and is used by allied countries.
"This is not a model that is known in Albania, there is a kind of prejudice about the actions of society, it is an international model and the goal is to engage private and state capital for the protection of an industry. We are not talking about a simple business, it is among the most difficult because it maintains a very high level of control and carries increased legal guarantees as the production and sale of weapons is regulated in state-to-state relations," said Nufi.
He added that the partner companies are specialized in the production of ammunition and that the cooperation is expected to bring economic benefits and employment.
"Contrary to what the honorable deputy claims, which I consider hasty and not at all serious as long as we are talking about national security and production capacity in the Republic, it would be very fair if it were a different reality, today our neighbors have 5 billion euros per year in profit from the military industry in addition to the fact that the military forces have guaranteed reserves for national security. This is seen with some shadow that it works with private partners, it is definitely so because they invest with capital, so far the state budget for the company is 3 million euros, all other investments for the four companies created definitely come from private capital", said Nufi.
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