VZCZCXRO4385
PP RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHTI #0104/01 0481451
ZNR UUUUU ZZH
P 171451Z FEB 09
FM AMEMBASSY TIRANA
TO RUEHC/SECSTATE WASHDC PRIORITY 7877
RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY

UNCLAS SECTION 01 OF 02 TIRANA 000104 
 
SIPDIS 
 
STATE FOR EUR/SCE 
 
E.O. 12958: N/A 
TAGS: PGOV ENRG EFIN PREL PHUM KCRM KCOR AL
SUBJECT: Embassy Tirana Weekly Report 
 
It's Not What You Know. . . 
--------------------------- 
 
¶1.  The Financial Crimes Task Force of the Tirana Prosecutor's 
Office has concluded the investigation of a major property related 
fraud case that involved the illicit transfer of land titles to a 
major Albanian builder.  The list of those charged includes the Head 
of Property Restitution Commission, a number of district restitution 
commission employees, the construction businessman Alban Xhillari 
and his lawyer.  In addition to forged documentation, prosecutors 
say that they have also collected incriminating wiretaps that shed 
light into a major corruption scheme.  According to the Prosecutor's 
office,  Alban Xhillari orchestrated the restitution to an Albanian 
family of 135 acres of prime coastal land that it had never owned or 
made claim to.  The family reported Xhillari to prosecutors after 
discovering that Xhillari's representatives had illegally shifted 
the location of their land by several miles.  Xhillari has denied 
all charges and says that he was never involved in the deal. 
Several property restitution officials have been placed under house 
arrest and charged with fraud.  Attempts by the case prosecutor to 
put Mr. Xhillari under arrest were derailed by the Tirana District 
Prosecutor.  On February 12, 2008, the Tirana Court, set bail for 
Xhillari at 100 thousand USD, which he immediately agreed to pay. 
 
¶2.  This case marks the first major investigation into fraudulent 
practices in the property restitution process in Albania.  According 
to Albania law, former owners of property confiscated by the 
Communist government are entitled to full restitution of those 
properties when available, and compensation at market price for 
property that cannot be reclaimed.  The process, however, is marked 
by major hurdles and plagued by corruption and criminal 
interference.  Thousands of property claims remain outstanding and 
the restitution offices are poorly staffed and equipped,a 
niainthatthe authorities have a vested interest in the 
current state of the restitution process.  The case under 
investigation best illustrates a standard precedent in the 
restitution process, i.e. only toe with power or money can work 
th system and get their property back.  This case may also 
hopefully prove that justice - even for the well-connected - may be 
served. 
 
 
Spend, Spend, and Spend Some More. . . 
-------------------------------------- 
 
¶3.  On February 10, Minister of Finance Bode reacted to recent IMF 
concerns over the larger-than-expected negative impact of the global 
crisis on the Albanian economy in 2009.  Bode disagreed with the 
IMF's pessimistic forecast for 2009 and instead expressed his 
confidence that the domestic economy will avoid serious fallout from 
the global crisis and will continue to show a fairly decent growth 
rate.  Bode also disclosed the GOA's anti-crisis plan, which 
consists mainly of boosting public spending and launching of new 
public financed projects.  He said that the MOF will sign next week 
a $420 million commercial loan agreement with a foreign bank.  In 
addition to raising additional funding, the GOA decision aims to 
protect the domestic financial market, allowing domestic banks to 
maintain a good level of liquidity in order to finance private 
projects in Albania. 
 
¶4.  The GOA is also moving forward with privatization as a way to 
improve performance efficiency, attract foreign investors and 
collect cash for public spending.  For the first six months of 2009, 
it is planning to sell almost 240 million USD worth of state-owned 
assets.  The government just announced the sale of 12.6 percent of 
mobile operator AMC for USD 65 million, and is planning to sell its 
24 percent stake in the state landline company.  Two other major 
privatizations, the Insurance Company and the Electricity 
Distribution Operator are also nearly complete.  On top of that, 
another $150 million from the sale of ARMO should already be in the 
treasury.  Overall, the GOA is killing two birds with one stone, 
both mobilizing for the crisis but more importantly (from the 
government's view) building an election war chest. 
 
 
Made in Albania, Back to Albania 
-------------------------------- 
 
¶5.  Two of Albania's key national soccer team players, Lorik Cana 
(playing currently for France's Olympique de Marseille) and Igli 
Tare (playing currently for Italy's Lazio) paid an Italian collector 
20,000 Euros in order to bring back to Albania the bust of the Greek 
god of medicine Asclepius.  The head was stolen from the 
amphitheater of Butrint (in southern Albania) in April 1991.  Player 
Tare said he heard about the sale by Christie's of the bust and 
traced it to an Italian buyer. 
 
¶6.  Approximately 2600 years old, the bust belongs to the statue of 
Asclepius, carved in white marble with green veins, and part of the 
chapel of Butrint.  Known Italian archeologist Ugolini was the first 
 
TIRANA 00000104  002 OF 002 
 
 
to discover the bust, but the statue was never found.  Researchers 
are split over whether the bust belongs to Asclepius or to Zeus. 
Therefore, it is usually referred to as Asclepius/Zeus. 
 
¶7.  The players said they were happy to hear President Topi will 
receive the bust when they bring it to Tirana, a full 18 years after 
it first went missing. 
 
 
Quote of the Week 
----------------- 
 
¶8.  "When the prosecutor's office becomes an instrument of politics, 
this becomes not only shameful but dangerous as well."  Excerpts 
from a speech by former Minister of Defense Fatmir Mediu following 
his indictment in connection with the tragic Gerdec explosion.