Government launches its attack: corrupt officials in the companies Thousands of Sude’s disappointed clients are on the verge of a hunger strike. They write to Ceka: “We’ll wait only 15 days” TIRANA—The Government is preparing the “Clean Hands” operation in the pyramid loan-sharking schemes. The sums received by politicians and senior officials at the rentier companies are to be uncovered. This is one of the main tasks of the Monitoring Group, a task approved by the Council of Ministers at yesterday’s meeting. In a lawsuit the Government will bring against the VEFA company before the Court of Cassation, its lawyers are expected to include the Minister of Justice himself, Thimio Kondi. The links between rentier companies and politicians have been one of the fiercest fronts in the political battle. The Government has decided to investigate the rentier firms and find out the sums that political parties received in the form of sponsorships. On page 3 Emergency at the Prime Minister’s Office. Thinjio Kondi, the boss’s lawyer against VEFA. The administrators take up their duties

TIRANA—The administrators must begin work at the companies by October. In Hong Kong, the top representatives of the IMF and the World Bank made it clear to Albania that there will be no assistance unless the loans taken out with money borrowed on a massive scale from the public are fully covered. Before the six-month emergency program is submitted for approval to the IMF Executive Board, the administrators must have been placed at the companies. The Government must sign the emergency program, which a joint team has imposed with several conditions, before the Donors’ Conference in Brussels on October 22. The program signed by the Albanian side is expected to go to the IMF Executive Board for approval during October. The Government’s goodwill in meeting the IMF’s conditions is not enough. It must also overcome the difficulties created by factors that the Prime Minister himself has not hesitated to call corrupt. The Court of Appeal’s decision to suspend VEFA’s operations will also increase the number of unemployed people and poor families receiving assistance. The Prime Minister and the Minister of Finance have insisted that the planned loan of 20 million dollars be increased. The World Bank Executive Board will approve this loan within the first 15 days of October. Changing the Bank of Albania law is also difficult at this time. The legal amendments concerning the Bank of Albania set out important measures that must be taken before October 22. The law’s passage by Parliament in August was received very coldly by the IMF. They insist that it be improved, since the current law undermines the Bank’s independence. The budget deficit figure approved by Parliament is also expected to change. For ’97, the Ministry of Finance had drafted a proposal forecasting a deficit of 53 billion lekë. By projecting an artificial increase in revenue, Parliament set the deficit at 44.5 billion lekë. Changes to the fiscal package, spending cuts and making customs offices efficient mean that the deficit, projected at 55 billion lekë for this year, will fall to 49 billion lekë. All these concrete measures are intended to help the Government meet the objectives set by the IMF: creating a stable macroeconomic environment. Foreign donors demand these guarantees; the Albanian economy needs them in order to recover. If the measures that will lead to a reduction in the budget deficit, lower inflation and increased revenue are implemented, an agreement with the IMF will be reached. This agreement is the guarantee that Albania will no longer draw more from the pyramid schemes and an economy kept afloat by illegal sources, but will accept the rules of the market economy. We need growth; legal avenues do not leave 5 percent out, but nor do they let you grow from zero fivefold in five years. ... ...The Government’s goodwill in meeting the conditions set by the IMF is not enough. It must also overcome the energy difficulties caused by the measures the Government itself put in place. These difficulties are compounded by corruption. The Court of Appeal’s decision to exclude VEFA from administrative control complicates matters. The Government will appeal the case against VEFA to the Court of Cassation, and it is hoped that the ruling will send administrators to VEFA, while Alimucaj refuses to accept them. In this way, it may seek revenue for Albanians and Albania, who, after withdrawing their money from the company, will lose even more in the future. If fiscal and banking reform are conditions, closing the companies is a prerequisite for aid. One of the main conditions is the necessary adjustment. The amendment to the fiscal package, which also includes an increase in VAT, was very well received by participants at the World Bank and IMF annual conference in Hong Kong. The solution to the social problems that the VAT increase will cause was also highly commended. The Bank’s request for adjustment ...

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“Transparency should be discussed in the chamber” TIRANA - The allies of the PD decide to leave him alone outside Parliament, for VEFA’s sake. Five MPs from the four parties in the “Right of the Centre” parliamentary group—the Christian Democrats, the Legalists, the Social Democratic Union and the Democratic Union—have decided to return to Parliament without the PD. According to ATSH, they have requested an interpellation under an expedited procedure with Minister Malaj, concerning Nano’s statements about closing VEFA. They are even asking for Alimucaj, together with his advisers and other company presidents, to be in the parliamentary galleries. For everyone who is not a “pyramid-scheme boss”—MPs or journalists—the session will be broadcast in full on television. The Right of the Centre grouping reacted very strongly to Nano’s statement from Hong Kong that VEFA would be the first to close. They have decided to meet with the president of VEFA and the presidents of other companies at risk of closure, to find a way to avert the danger threatening them. Alimucaj had often complained that Parliament had never discussed how they could be helped. MPs Bushati, Ngjela, Durolelat, Laco and Ndreu will give him that opportunity. They met with the president of VEFA: “Nano is wrong to want to close the biggest company in the country,” they told Alimucaj. In the following days, the Right of the Centre group submitted its request for an interpellation to the Presidium of Parliament. This time, Gjingji will chair the “televised debate.” Alimucaj will not be able to speak directly with Malaj, but at least he will hear him “live.” To help the companies that took in Albanians’ savings, the Right of the Centre has even withdrawn from the joint statement it signed with the PD to boycott Parliament until the Presidium and Government resign. A few days ago, the Council of Europe, by means of a resolution, called on the opposition to return to Parliament. So far, the Council of Europe has persuaded 4 of the 5 parties that left Parliament. They have decided to continue their meetings with the presidents of other companies, including SILVA, and other companies that have borrowed money from the public. PDK, PLL, PBSD and PBD MPs: Malaj must answer for it The file is ready at the Ministry Vehbi Alimucaj

The file is ready at the Ministry TIRANA - The Ministry of the Interior is preparing a case file against the dismissed former general, Agim Shehu. “Not only his activities, but those of others in the working group are also being examined,” Deputy Interior Minister Sokol Bare told Gazeta yesterday. Ministry sources said yesterday that Shehu will face at least two charges: abuse of office and desertion.

DURRËS — On page 4 DURRËS Fight on the beach: two victims On page 4

SARANDË — On page 4 SARANDË TNT on ferry: panic among passengers On page 4

KORÇË — On page 2 KORÇË Clash with police: 6 injured On page 2

ASSISI - A powerful earthquake has shaken central Italy. Two successive tremors caused the collapse of churches, including one of the most famous medieval churches, that of Saint Francis. Meanwhile, extensive damage was also reported in many villages around the epicentre. The first victims of the collapse of the 13th-century church were two priests. As the hours passed, the death toll rose to eight. The magnificent church also contained rare frescoes by Giotto and Cimabue. For the moment, the actual damage to the precious frescoes is still unknown. They had withstood the passage of time, but could not withstand this sudden disaster. The earthquake, which struck at around 11 in the morning, is reported to have measured 5.6 on the Richter scale. Its epicentre was near Foligno, close to the regions of Umbria and Marche. As a result of the damage and the many roads leading to the devastated areas being cut off, workers are trying to open the first communication routes. Italian Prime Minister Romano Prodi is also expected to travel to the scene. What makes the situation more critical is that reports of the dead are continuing to come in. It is believed that as many as ten regions of Campania and Basilicata were completely destroyed. In many places, as has been discovered so far, Italy is a country that frequently suffers earthquakes. The earthquake of 23 November 1980 has not yet been forgotten; around 2,570 people lost their lives, and several areas of Campania and Basilicata were completely destroyed. The ruins after yesterday’s earthquake in Italy (Photo REUTERS)

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