“I played the pyramid game.” Gjalllica postpones the deadline “ I played the pyramid game.” Gjalllica postpones the deadline Anxiety also at Gjalllica. Money is hoped for only on February 6. The announcement was made yesterday at midday in Vlora On page 9 Kopliku accuses: “Everything is the government’s fault. It is now too late to make proposals about them.” PD announces: “Stay away from the companies.” On page 9 12:00 a.m. Sudja is escorted by police to Police Station No. 2. A few moments earlier, her sister, brother-in-law and another female relative of Sudja had got into the police van waiting outside the entrance to her home. Photo: Plator Ilo

Armand Mero Five years ago, the phenomenon of pyramid schemes began in Albania. People rushed in; the state remained silent. Now, after months of agony[?], and money, Sudja has fallen. The state is silent again. Throughout all these months, pyramid schemes have been part of Albanians’ lives. There was no suspicion, no criticism, no investigation of the companies. People watched their money grow; others, lured in, tried their luck, and the number of others grew ever larger. The magic tap flowed without stopping, and the state had given it permission to do so. The firms and companies had obtained licenses for their activities, so the circulation of money appeared, at first glance and formally, to be in order. But when the pyramid-scheme system felt its first tremors, the state washed its hands of it: “They have absolutely nothing to do with me.” Does the state have obligations or not? The mission of the state or a government—in simplified terms—is essentially to serve its citizens, who have brought it to power and entrusted it with this role through their vote. At that point, it ended with a phrase warning of the dangers of pyramid schemes. Put briefly, and even leaving the impression that the statement had slipped out by mistake, this was the first and last government acknowledgment. The fear of that time was later dispelled by Berisha, who told representatives of the IMF that Albanians’ money was perfectly clean. Everything continued as usual, and the pyramid-scheme firms began offering super-interest rates, until Sudja made the first stop. Only then did Parliament remember to intervene. The Transparency Commission was announced; it took[?] weeks to select its members and get to work. After pyramid schemes had made Albanians dream for years, scrutiny of them began. It seemed the state had finally sought to act early to normalize the situation so people would not be left empty-handed. But disappointment came from the Bank. Swollen by the millions from the pyramid schemes, especially over the past year, it revealed that banks around the world always set limits on the sums that can be withdrawn. Until yesterday, it had not asked where this money came from. The astronomical sums[?] “have nothing to do with me at all.” the state, or of a government—in simplified terms—is fundamentally and entrusted it with this role through their vote. The moment the pyramid-scheme firms were licensed, the first state obligation arose. What system did they use? Where did this money come from? Where does it go? How does it circulate? For five years, no checks were carried out on the activities of these firms, unlike the daily inspections of other private companies, which duly submit their balance sheets every year. With her collapse, Sudja also made a frightening admission—or rather, confirmed what everyone suspected but had so far been denied: “I used a pyramid scheme.” In other words, an illegal activity carried out for several years in full view of the state. And the state remained silent. The IMF reminds the government about pyramid schemes It took the arrival of the International Monetary System for the Albanian state to remember that pyramid schemes are a dangerous activity. It was October when the Government decided to mention this name publicly. The person chosen was the Minister of Finance. His mission began with an attempt to normalize the situation of people already accustomed to being enticed by need[?]. But the major solution came from the Bank. Swollen with millions from pyramid schemes, especially over the past year, it discovered amounts where this money came from. The dizzying sums in circulation apparently suited it, and this made it “forget” the international banking practice that the origin of deposited money must be declared. It seems this practice matters to the bank only when it is a question of blocking. Pyramid schemes, consequences not only for individuals If the disappointment that Albanians are experiencing these days has so far been so great, and it is their fault for believing in the pyramid schemes, the Albanian economy will not escape the consequences either. Today people in front of Sudja were crying, screaming, and tearing their hair out; tomorrow the macroeconomy may be at risk of doing the same, and the Government may no longer be able to boast about Albanians investing and spending to improve their well-being. The collapse of the pyramid schemes, and perhaps the exposure of their pyramid structure, wipes out millions of dollars at a stroke, raising the specter of a drastic fall in living standards accompanied by rampant inflation.

12:00 a.m. Sudja is escorted by police to Police Station No. 2. A few moments earlier, her sister, brother-in-law and another female relative of Sudja had got into the police van waiting outside the entrance to her home. Photo: Plator Ilo

TIRANA - “Limiting cash payments is a normal rule that has been in place for a long time and is also applied by other banks around the world” — Kristaq Luniku, Governor of the Bank of Albania, defended yesterday in an interview with BBC radio the position taken in recent days by the important financial institution he heads. Luniku said that the rule limiting payments becomes necessary at a time when companies’ demand for banknotes has increased significantly. The issue of licensing private banks in Albania has not been overlooked either. Luniku clarified that this is a matter for the supervisory council of the Bank of Albania and is not solely within the governor’s competence. In any case, he made it clear that there will be no compromises with one or two companies over the granting of a license. On page 9

Tirana, the anti-fraud commission uncovers the scheme TIRANA—“A pyramid scheme has been identified at Sudja.” Confirmation came yesterday from the anti-fraud commission. Bardhyl Pelingu says that “she herself has admitted this fact, but elements of the pyramid scheme also emerged during our work.” Meanwhile, he prefers not to say whether the “Populli” foundation was built on a pyramid-scheme basis or not. Ready to talk, Pelingu prefers instead to emphasize the direct information: top-secret information and the firms’ balance sheets, accounts, and inflows and outflows of money. The anti-fraud official confirms only that “so far there is no question of money laundering or other forms of commingling.” Asked when the investigation into the fraud schemes will end, Pelingu gives no specific time frame. “Deadlines cannot be set, since we are dealing with many other firms in different categories.” But it seems that the system of reporting to the public takes place after each firm is inspected at the offices of the Economy Commission. “We cannot assume that we will finish everything by the end of January,” says Pelingu, pushing back[?] the deadlines for completing the work of the commission he heads. Keeping his information guarded and avoiding details, Pelingu believes that his commission’s transparency will be presented in all its particulars before the Albanian Parliament when “everything in the world of fraud schemes has come to an end.”

SPORTS GAZETTE On pages 5–8

FROM THE WORLD On page 2

Only yesterday did the television station remember what was happening The storm of Albanian pyramid schemes TVSH breaks its silence TIRANA—Sudja, of course, had to come after the news about Palestine. TVSH apparently decided to do global politics; otherwise, there is no way to explain why the “frenzy of pyramid schemes,” which has left half of Albania frozen in its tracks, ended with an announcement at the end of the 4:00 p.m. news bulletin! And with no footage. Yesterday—and apparently not only here—we all rushed breathlessly to the small screen. We had just been informed that TVSH had intervened to broadcast the terror of the desperate people who were vainly seeking their money. It took us more than 20 minutes finally to hear the word Sudë. Before that name, we had heard names such as Hebron, Palestine, and others just as “close” as these. During the remaining ten minutes, the newsreader’s face did not so much as twitch: “There were crowds of people at Sudja today, who were demanding their money and chanting slogans against the Government,” was more or less what we heard. Months in which TVSH has broadcast nothing about the pyramid-scheme firms but advertisements and opening ceremonies. The most important development in the country. And only in the 8 p.m. news bulletin did TVSH finally show an image of the pyramid-scheme tragedy, announcing the death of “Sudja.” TVSH has been silent for a long time, quite comfortably. Knowing the many difficulties, we would have liked at least to find one reason for this absurd lack of information, at a time when half of Albania is seething over the money lost[?] in the “storm” known as pyramid schemes. But many months have passed, preventing us from forming such a view. firms but advertisements and opening ceremonies. Fatos Baxhaku

Clashes with the police during the protests (Photo: P. Ilo)

Two clashes between customers and police. Sitting down in the road, they blocked the ring road for long stretches of time. Police cordon On page 3