17/01/1997
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Gazeta Shqiptare

17 January 1997

Vlorë, several hours of clashes between clients of “Gjalliça” and the police. Fear and patrols in Tirana too

The carcass of the pyramid schemes: Are politicians rushing to collect the interest?

ANDREA STEFANI While the bankruptcies of “pyramid-scheme” businesses are laying waste to thousands of impoverished families, it is devastating that this calamity, historically and with perfect cynicism, is also crushing people with exceptional power. After having let life pass them by, they plunged blindly into the whirlpool of the “pyramid schemes,” shamelessly associating themselves with politics. The “State” is trying once again to do the same thing now that the catastrophe is reaching enormous proportions. And when we say “the State,” we have in mind all its dimensions; first and foremost, the two main blocs: the executive power. The question is whether these two blocs are pursuing, in response to the disgrace of the pyramid schemes, the same confusing strategy of benefiting at the expense of the “people,” who apparently in Albania—more than anywhere else—remain merely a concept and not a reality with which one must properly reckon. And perhaps both sides know that they are not addressing a “people,” but a crowd. Only this can explain the “helpless” position of the authorities and the hypocritical posture of the opposition’s “culprits.” Faced with financial ruin, thousands of people are reaching out toward an economy already devastated, sinking ever further into circumstances they cannot cope with. “Toward the government,” “toward the government.” But suddenly someone says it, and when TV viewers get the message, the question is: who among the various sectors or personalities is responsible? “Self-defense of the pyramid schemes”—now, even the crowd…? “Such systems, apparently…” The word is out in the square and the govern… What can be done? While the “pyramid-scheme” businesses are destroying thousands of families, the government’s statements about what may come offer no answer. Some of the responsibility appears to have been shared in the “swamp” of the pyramid schemes, all along. But now it reappears on screen with another “excuse.” “We did not license them to operate pyramid schemes.” That is more or less what Bode said. Perhaps the minister thinks it is acceptable that… to have allowed for years the illegal operation of a super-business which, after swallowing millions, brings the state to its knees and threatens stability and the macroeconomic indicators achieved through sacrifice. With considerable indulgence, such an under…taking could simply be classified as foolishness. As a branch of government, perhaps TVSH was also the heavy artillery of the “pyramid schemes,” firing explosive pyramid-shaped bombardments through advertising and lavish openings: it was precisely the screen of the birds that made the “interest” rates of the parasitic “pyramid” enterprises seem tangible and made it safer for people to queue at their counters. And what has the opposition done in the meantime? Perhaps everything, but neither of the opposition’s two main pillars has done anything on this front. It is a fact that the enormous interest rates offered by the “pyramid schemes” had a colossal impact on the increase in young people’s incomes. The government’s “gifts” from the pyramid schemes meant that the opposition did not dare attack them. Indeed, in this case, its own power could find plenty of articles about the same easy money from the pyramid schemes. Judging the attempts to make a major political gain from them all the more harshly, the opposition, on the eve of and during the two election campaigns held last year, calculated its moves and opened the way to the pyramid schemes in its bid to take power. Therefore, now it would be morally irresponsible for society to see an opposition “calculation” to put itself at the forefront of popular anger, now that the collapse of the financial pyramids has finally awakened the truth… In fact, society and those in power have “enjoyed” them in every possible way. It is immoral to exploit the facts to stir up popular anger over this… and to do the same through our actions, our inaction, or even our silence. It is simply a condemnation. The issue is to make an effort to minimize the mass tragedy, not to use it to get into the vicious circle of further deterioration… The government and opposition turned a blind eye to the “pyramid schemes.” Now they have another chance to regain the credit they lost with the people, now that the pyramid schemes have collapsed. Now they have the entire electorate, regardless of political color. They must understand this… as people in the street, not as party sympathizers, but simply as the “great losers” of their hopes. That is why they must help collectively. Politicians, keep your hands off the… pyramid schemes!

The pyramid-scheme uprising

The foundations’ funds frozen The Municipality of Vlorë yesterday, after being damaged by demonstrators (Photo: P. Ilo)

Bottles, stones and slogans against the Municipality and the authorities. Nearly ten thousand angry demonstrators On page 3

Yesterday, the police kept watch at the entrances and main squares of the Capital. Police officers and onlookers wait at Sudja On page 5

In Vlorë, the police guard the offices of “Gjalliça.” Gërxhalliut’s family members are cordoned off by security forces On page 3

Money in the super-pyramid schemes: over 250 million dollars

THE BANKS FREEZE THEM TIRANA — The government has finally decided to intervene in the pyramid-scheme funds. At an extraordinary meeting, the Council of Ministers took severe measures against the foundations. Under a firm order, all deposits belonging to the borrowing companies are frozen until the nature of their activities is clarified. They amount to 25.5 billion lekë, representing the Albanian pyramid-scheme funds accumulated in banks, which can no longer be moved. Although delayed, the government’s decision is a final attempt to prevent the problem from growing further to a scale that could overwhelm the enormous number of clients. The apparent reason for this decision was Sudja’s declaration that it had operated according to a pyramid scheme. At least, that is also quoted in the statement by the government spokesperson. “In order to avert the consequences, bearing in mind the pyramid nature of the Sudja company, as well as the preliminary information from the Transparency Commission concerning the other foundations, the Council of Ministers decided that a total of 25.5 billion lekë deposited by the foundations in state banks be frozen in favor of the Albanian government,” the government spokesperson for Albanian Broadcasting declared. “A definitive determination of whether or not they are pyramid schemes will be made later,” the government statement says verbatim. The complete blocking of every opportunity for the foundations to distribute [unclear] raises questions. The government will allow them? Is it…? How can hypothetical transactions be prevented by companies that have carried out ten… of their… Those affected by the decision are “Populli” and “Xhaferri,” or perhaps some other foundation that may have been set up in other cities. This means that tomorrow no client will receive any money from the counters of these two pyramid-scheme “giants.” “Vefa,” “Kamberi,” or other companies that, in addition to commercial activity, also engage in borrowing, have been spared. The fate of “Sudja” remains uncertain. Is there any money left in its bank deposits or not? And if so, how will it be distributed? Will the clients be able to collect it? This is an open question for the other foundations too, if they are to be unblocked and allowed to operate using a pyramid scheme. The Prime Minister’s Office

USA: “The government is also to blame for the pyramid schemes”

WIRTH’S STATEMENT On page 3

“We have not licensed any of the foundations”

BODE On page 5

Car bomb targeting the Serbian rector

KOSOVO Prishtinë Car bomb targeting the Serbian rector On page 2

The stadium in search of electricity

FOOTBALL On page 6

Opposition: “Let’s go to the square on Sunday”

The Interior Ministry was notified yesterday TIRANA — The opposition is calling for Skënderbej Square to defend the people’s money. Faced with crowds shaken by the pyramid-scheme crisis, Albanian opposition figures have decided to take a leading role. In response to the great anger of people who have lost their money in one of the borrowing companies, the opposition’s top leaders have decided that this weekend, on Sunday at 11:00, they will hold a large protest rally in Skënderbej Square. The opposition has declared that it is determined to take to the square even if the Interior Ministry authorities do not grant permission. Speaking to Gazeta, PSD leader Gjingjushi said that “protest is a legitimate right, so we will go to the square.” After a marathon meeting lasting several hours, the PS leadership decided to issue a call to… …other initiatives of the opposition bloc. “Let us protest against the violation of citizens’ economic rights,” PSD leader Dajani called yesterday, while [they] immediately responded positively to organizing a major opposition rally. According to PS spokesperson Kastriot Islami, PPD, PUK and the Association of Former Political Prisoners are also expected to take part in Sunday’s rally. Yesterday evening, the parties’ rally—PS, PSD/PD—was notified to the Interior Ministry, with a request that the security forces take “the appropriate measures in accordance with the constitutional law on human rights and freedoms.” Meanwhile, in a statement to the press yesterday, the PS said it was ready to be “at the forefront of the interests of the Albanian people,” through democratic action. Elio Bllini

Cashier detained; family: “She didn’t steal a single lek”

Today the court will decide her further fate TIRANA — “Diana Dedndreja, cashier at ‘Xhaferri,’ did not steal a single lek. The money seized from her belonged to the company and was what she had collected that day.” That is the cashier’s uncle speaking; she was placed under arrest yesterday. The police took her into custody at midnight on the 13th, and yesterday she was transferred to the cells of Prison 313 in Tirana. According to police sources, she was detained because she was “accused of theft.” But now her family members are explaining how she ended up in this situation. Her uncle, Fran Dedndreja, says she had worked the afternoon shift on 13 January at a branch of “Xhaferri” and had collected around 3 million lekë. Since the bank does not operate in the afternoon, she took the money collected with her to her home, accompanied by the foundation’s guard. According to him, this was the foundation’s work procedure, because at the end of the working day the money was collected at the branch and then taken to the bank. In fact, these details are documented and can be verified from the police seizure record. The record lists, one by one, all the collection receipts that attest to the cashier’s work for “Xhaferri” and the sums of money involved. “As for this money, even the police found the receipts with it, yet it is claimed that she stole it.” According to her family, no complaint of theft was filed against her by the owner of the money, the “Xhaferri” foundation. In any case, today cashier Dedndreja will appear before the judges, who will decide her further fate. Mentor Kikia