Government Changes Initial Draft Law on Corporation of Investments

Government Changes Initial Draft Law on Corporation of Investments

TIRANA, 11 September

After the issues raised by the International Monetary Fund (IMF) and the European Commission, the government has changed the draft law on the state corporation of investments withdrawing the initial draft law. The new draft, which was formulated in collaboration between the Parliamentary Commission of Economy and the Ministry of Finance and Economy, increased the financial discipline of the corporation and lowers the risks for the state’s finances. 

The most important change in this draft law is the procurement article. In the initial draft law was predicted that the corporation, even though a public company, could procure investments without obeying the rules of procuration. But in the new draft law, the article is changed completely clarifying that for the projects with international partners will be implemented their rules of procuration, whereas for those with inner funding will be implemented the Albanian law. 

The procurations were one of the most criticized points from the IMF in the initial draft law, but not the only one. Another issue was the integration of the corporation and risks that this institution could have for the state’s finances. But sources from the Ministry of Finances and Economy, say that in the reviewed draft law these issues are addressed completely. According to them, in the new draft law is defined that the corporation of investments will be an audited subject from the State Supreme Audit, like any other institution. 

At the same time with the new draft law was reviewed the clarity regarding the funding of Corporation, and its division of obligations from the state budget, according to the practices that the other countries apply for the same institutions. The initial draft law for the corporation of investments was sent to the parliamentary commissions for voting in July 2019. But the government withdraw the draft law from voting in the last minutes for review. On the new draft law are made 12 changes, which aim to lower the risks of the corporation and to strengthen its financial discipline.  


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