Military forces withdraw from guarding buildings TIRANA — The military forces that had been deployed around public and state buildings to assist the Ministry of the Interior, pursuant to a decision by Parliament the previous day, were no longer present on the morning of the previous day. Deputy Prime Minister and Foreign Minister Tritan Shehu called the continued presence of the army near these institutions unnecessary, since the situation now appeared completely calm. Although several right-wing political forces had called for a protest yesterday, this had no effect whatsoever on the withdrawal of the military contingent deployed around public buildings, ministries, banks, radio and television, and ATSH. Nevertheless, these forces remain on standby and may be used if necessary. The limited military units which, under Parliament’s decision, were to be used to guard state and public buildings constitute a withdrawal onto the national roads, [text unclear]; they are to remain temporarily only to keep all national roads open, [text unclear]. At a press conference, President Berisha assured everyone that “the period during which the military forces remain near these buildings will be short.”

Parliament passed the law on the return of the money The identification of the activities carried out by certain abusive lenders through charitable foundations, their “distribution” as necessary, and the delayed repayment of deposits to citizens defrauded by this illegal activity. To this end, a special draft law was drawn up for distributing the assets of foundations that conducted borrowing activities using fraudulent pyramid schemes. It provides for appropriate measures to ensure a fair distribution of lenders’ deposits and of the value of the foundation’s movable and immovable assets. The main problem, undoubtedly, is how the aforementioned assets will be distributed. As is known, these foundations began operating some time ago. This means that an individual may have deposited money when the foundation first began its activity and, if they continued without interruption, may have made further deposits later. The law provides for distribution to be based on deposits. It is understood that depositors who are not listed as creditors on the day the foundation was frozen and who have withdrawn their deposits are not covered by this law. To return the capital deposited by creditors listed on the day of the freeze, a coefficient will be used, calculated as the ratio of the total value of lenders’ deposits to the total value of the foundation’s assets, separately for movable assets and for immovable assets. With regard to the order in which deposits are distributed, in order to prevent abuses, it has been decided to respect the order in which they were actually made to the foundation, applying it chronologically through the savings books, from the date on which work resumes. All other technical issues, such as finding ways to reduce the outflow of lek from the banks, distributing the savings books, determining the distribution locations, identifying the entities that will make the payments, compiling creditor lists, preparing schedules on the basis of which the banks will pay out the money, etc., must be resolved through subordinate acts.

Yesterday at midday, the Council of Ministers met under the chairmanship of Mr Aleksandër Meksi and reviewed and approved the draft law submitted by the Special Government Commission on distributing the assets of foundations that conducted borrowing activities using pyramid schemes. The draft law protects the interests involved in distributing the frozen monetary assets of the foundations, including consideration of how their immovable properties will be sold, etc. Prime Minister Meksi said at the meeting: The Government reviewed the draft law submitted by the Special Government Commission concerning the distribution of funds and monetary assets frozen and deposited in the country’s banks, belonging to depositors in the foundations that have been dissolved. The draft law sets out the procedures, compliance with deadlines, and the commitments undertaken by the Government to carry out this process, which is certainly a delicate one, in the sense that everyone’s interests must be served fairly. The draft law also envisages how the monetary assets and the proceeds from the foundations’ properties and their founders’ assets will be seized, sold, and distributed. THE LAW ON THE DISTRIBUTION OF THE ASSETS OF FOUNDATIONS THAT CONDUCTED BORROWING ACTIVITIES USING FRAUDULENT PYRAMID SCHEMES Yesterday the People’s Assembly passed a law setting out how the assets of pyramid-scheme lending foundations are to be distributed. ARTICLE 1 The purpose of this law is to establish rules for the manner and criteria governing the distribution of the assets of foundations that conducted borrowing activities using fraudulent pyramid schemes, hereinafter referred to as “foundations.” Other legal provisions in force shall not apply to the distribution of the assets of these foundations to their lenders. ARTICLE 2 For the purpose of determining the foundations’ liabilities to their lenders, the amounts in bank account books, all types of movable and immovable property belonging to the foundations’ founders, directors, agents, and others, as well as all other persons found guilty of actions by the founders of the foundations to obtain benefits through pyramid schemes, shall be identified. ARTICLE 3 All legal transactions personally or involving property, referred to in Article 2 of this law, through which their assets were transferred to other persons shall be invalid, except in cases of transfers made at the outset of their relationship with these foundations. ARTICLE 4 All civil proceedings in court or arbitration for the protection of the rights of lenders and other persons referred to in Article 2 of this law shall be suspended for the purposes of implementing this law. ARTICLE 5 Each eligible lender shall be credited with the value of the deposit established on the basis of the foundations’ accounting and financial records. ARTICLE 6 The total frozen funds for each foundation shall be divided by the total amount owed to depositors under Article 5 of this law, for distribution as provided for in Article 1. ARTICLE 7 A special Government Commission shall be established to implement Article 6 and address other matters related to the implementation of this law. The commission shall consist of: 1. The Chairman of the Council of Ministers 2. The Minister of Finance 3. The Minister of Justice 4. The Minister of the Interior 5. The Prosecutor General 6. The Governor of the Bank 7. The General Directors of the wholly state-owned Commercial Banks where the money belonging to these foundations was deposited. ARTICLE 8 The amounts payable to lenders shall be distributed in cash or through savings books (with a term), in accordance with banking criteria, with interest also accruing for the period during which the funds remain in the bank. This interest shall be calculated starting from the date the foundations’ accounts were frozen. Withdrawals from the savings accounts and the closure of those accounts shall be carried out in accordance with the banking procedures for such accounts. [Part of the original text is unclear.] ARTICLE 9 The list of depositors shall be published. Persons who are not included on the lists but have documents proving that they are lenders shall have the right to appeal to the Commission provided for in Article 7 of this law, or to other authorities designated by it. ARTICLE 10 The Ministry of Privatization shall organize the expert valuation of the foundations’ immovable property, as well as property arising from transactions made in the name of the foundations by their founders and other persons referred to in Article 2 of this law. These properties shall be sold at auction by the National Privatization Agency. The proceeds from sales under the first paragraph of this Article shall be distributed to the respective depositors in accordance with this law and as applicable. ARTICLE 11 The Council of Ministers is charged with issuing rules for the implementation of this law. ARTICLE 12 This law enters into force on 30 January 1997.

The people of Shkodër bid a final farewell to Cardinal Mikel Koliqi The President of the Republic, Sali Berisha, attends Rare in the history of Christianity and of the Albanian nation are men whose steadfastness, virtue, sacrifices, and spiritual breadth bring such great honour to the Church, the nation, and Christianity as a whole. Such was Father Mikel Koliqi. Yesterday, the people of Shkodër bade their final farewell to the first Albanian cardinal, Mikel Koliqi. At 8:00, his coffin, accompanied by hundreds and hundreds of citizens of Shkodër, passed through the city’s main streets and was then placed in the city cathedral, where the people of Shkodër paid their respects. At 11:00, President of the Republic Sali Berisha arrived to attend Cardinal Koliqi’s funeral, along with Pjetër Arbnori, Chairman of the Presidium of the People’s Assembly, representatives of various religious faiths, and local government officials. During the Mass held on this occasion, Shkodër’s auxiliary bishop, Zef Simoni, said, among other things: “An indescribable sorrow has overcome the city of Shkodër and all of Albania today. He spent 38 years [away], but for not a moment did he leave the Albanian Christian Church. Shkodër was, and will remain, Koliqi’s centre of Christianity. Future generations will remember with respect this man, this great believer of the Albanian nation, who worked to spread Christianity in Albania. The Albanian Catholic Church has lost its most beloved man, its shepherd, the one who worked for the Church and Christianity. Rare in the history of Christianity and of the Albanian nation are men whose integrity, virtue, sacrifices, and spiritual breadth bring such great honour to the Church, the nation, and Christianity as a whole. Such was Father Mikel Koliqi.” Then the Archbishop of Durrës and Tirana, Rok Mirdita, read the telegram sent on this occasion by Pope John Paul II, which said, among other things: “On learning with great emotion of the death of the esteemed Mikel Koliqi, I express my deep sorrow at the loss of a fearless shepherd, who, during his long service to the Church, proved to be a living witness to the spread of the faith. He was taken away for many years from carrying out his mission as a priest, but he was never afraid, and maintained his clerical love of faith and constant fidelity to the Holy Mission.”

Arbnori writes to the Pope Cardinal Mikel Koliqi symbolized, for all of us Albanians, wisdom, a martyred man, and a great Albanian who throughout his virtuous life worked and fought for faith and Fatherland, following in the footsteps of many distinguished Albanian Catholic clerics. The communist dictatorship sentenced Cardinal Mikel Koliqi to a long and terrible imprisonment, but it could not break his great spirit. For all of us who suffered alongside him, Koliqi was an outstanding example of endurance, courage, and hope. The first democratic movements in Albania in the 1990s found Cardinal Koliqi, despite his advanced age and illness, at the heart of his people, with prayer and a holy plea on his lips for the freedom that was not long in coming. The entire Albanian nation today honours the memory of the late noble and kind-hearted man, and so does all the Albanian people. Mikel Koliqi was honoured by the democratic Albanian state with the titles “Honour of the Nation” and “Torch of Democracy” for his activities. Your Holiness had previously expressed the highest esteem for his sublime sacrifices and for his life as a religious man and great Albanian, when he became the first cardinal in Albanian history. Sharing in your sorrow, allow me to say that you have lost one of your most devoted missionaries, and Albania one of its most devoted sons. The untimely death of the late Mikel Koliqi is an irreplaceable loss. He has already earned a place in the pantheon of virtuous and distinguished men of the Albanian people, who will rest in eternity.

It will be a process conducted entirely under supervision, so as not to create conditions and opportunities for the misuse of the distribution of money Finance Minister Ridvan Bode on the law concerning the distribution of the money The law passed by Parliament yesterday is intended to provide a solution for distributing the money frozen in the foundations that conducted their activities using fraudulent pyramid schemes. The law states that these procedures will fall outside the normal procedures for the bankruptcy of companies, since that would not be in the depositors’ interests: the procedures would be prolonged by court proceedings to establish the activity, with numerous hearings when there are large numbers of depositors. Thus, the distribution is to be an administrative process carried out by commissions set up by the Government. Continued on page 3

Excerpts from an interview with Monsignor Mikel Koliqi, the first Albanian cardinal, during the filming of “The Cardinal” Page 5