At the Council of Europe Yesterday, a meeting of the Political Affairs Committee of the Parliamentary Assembly of the Council of Europe was held in Strasbourg. The agenda also included consideration of the draft report on Albania’s admission to the Council of Europe, prepared by Mr. Keltchermans, which highlighted the achievements and problems that Albania has faced and continues to face since the first pluralist elections on March 31, 1991. The Committee members did not hold a discussion, but made several suggestions concerning the Constitution, the position of the Greek minority, etc. In his address, the head of the Albanian delegation to the Parliamentary Assembly, Eduard Selami, thanked the rapporteurs and members of the Political Affairs Committee for their cooperation. We do not view this Committee decision as the final step, but as an important step for our country on its way toward Europe. We will continue working in this direction, bearing in mind your suggestions concerning the Constitution, the minority and other issues, while also making our modest contribution to the Parliamentary Assembly of the Council of Europe. The address by the representative of the Albanian opposition, the chairman of the PS parliamentary group, Namik Dokle, was eagerly awaited because, as is known, one of the fundamental requirements for the admission of countries to the Council of Europe is the consensus of the opposition. Among other things, PS parliamentary group chairman Namik Dokle said: «To put it clearly and without any ambiguity, our Party and other opposition parties want Albania to be admitted to the Council of Europe. This does not mean that we have no problems, but we are convinced that Albania needs Europe in many respects: political, social, economic and, above all, in order to build a democratic society, a state governed by the rule of law, in which nothing is more important than human rights. On our long road to the Council of Europe, many issues have been discussed, but the two most debated have been the Constitution and the “Nano issue.” As regards the Constitution, as your report states, Mr. Keltchermans, and as you also suggested here, after the Referendum work must continue and a way must be found to cooperate in order to respect the people’s wishes. As for the second issue, as you already know and as is noted in the committee’s report, Fatos Nano, chairman of our Party, is still in prison, and this has been widely discussed in Albania and abroad. I wish to inform you, esteemed Committee colleagues, that Fatos Nano, although imprisoned, has declared on behalf of the Socialist Party and in his own name: “We agree to Albania’s admission to the Council of Europe.” Why? Because our country’s integrity is more important than the political struggle in Albania, because Europe is our future.» The committee’s report was approved unanimously and will be submitted to the Parliamentary Assembly at a future session (perhaps in June 1995), when Albania’s admission to the Council of Europe will also be discussed and decided finally. The way is now open. After the committee meeting, its chairman, Mr. Keltchermans, met with the delegation and, after congratulating it, declared: «The opposition’s position was very important, a position that guarantees the smooth completion of Albania’s eventual admission to the Council of Europe. I hope we will continue our cooperation.» Press Office of the PSSh

Yesterday, PSSH deputy secretary Sh. Shërvet Pëllumbi and PSSH deputy chairman Ilir Meta held a meeting with Britain’s Permanent Under-Secretary of State for Foreign Affairs, Mr. John Coles. Yesterday, PSSH deputy secretary Sh. Shërvet Pëllumbi and PSSH deputy chairman Ilir Meta held a Mr. John Coles. At the meeting, Sh. Shërvet Pëllumbi briefed Mr. Coles on the political and economic situation the country is going through and the alternatives put forward by the PSSH for overcoming this difficult situation. A special place at the meeting was also given to the PSSH’s positions on Albania’s foreign policy and developments in the region, and in particular to Albania’s speediest possible integration into Europe. Particular emphasis was placed on Albania’s earliest possible admission to the Council of Europe with full rights, as well as the opening of negotiations to conclude an association agreement between Albania and the European Union. In this context, Britain’s support for Albania was praised. For his part, Mr. Coles praised the PSSH’s positions, especially the priority it gives to European integration, and stressed that Britain’s support would increase. The meeting was also attended by Britain’s ambassador, Mr. Patrick Fairweather, and the chargé d’affaires in Tirana, Mr. Stephan Nash. Press and Information Office of the PS.

Once again on the tractors purchased with the Greek loan - Blerim Cela blocks the State Audit material - The Prosecutor’s Office does not read newspapers - Why are the Socialist deputies silent? THE STATE AUDIT OFFICE ACKNOWLEDGES «In the agreement, the loan is described as a state loan. The two respective governments guaranteed it». «Under the agreement, the loan is earmarked for imports for the Albanian economy». «As a state loan, it should have been handled through the procedures laid down by Council of Ministers Decision No. 420, dated 15.9.1992, with the Directorate for Medium-Term Support of MAN Enterprises. The Ministry of Finance and this Directorate requested this through several interventions». «In fact, without any written act or decision, the loan was handed over to the National Bank for implementation». «Toward the end of 1992, following intervention by the Ministry of Agriculture and Food, this loan was earmarked for the purchase of tractors and bread ovens». We return once again to the issue of purchasing tractors and bread ovens with the Greek loan. This issue has been covered several times in the press. It has also been discussed in Parliament. An inspection has also been carried out by the State Audit Service. 1. SERIOUS VIOLATION: THE LOAN’S PURPOSE WAS ILLEGALLY CHANGED. The Greek loan, under the bilateral agreement, was a loan designated for the Albanian economy. FIRST, THE PURPOSE OF THE LOAN… There is a Government decision concerning this loan, No. 420, dated 15.9.1992. Thus, the decision belongs to the Meksi government, not to previous governments. According to this decision, this loan, as a state loan, was to be used through the Directorate for Medium-Term Support of MAN Enterprises. This is acknowledged… out by the State Audit Service. Legal violations in the use of this loan have been acknowledged, violations that have led to serious economic consequences for the country. No small amount, but around 7 million dollars, has been lost (or stolen) as a result of purchasing tractors and bread ovens at prices far higher than the actual prices offered elsewhere. 8 million dollars of this loan have been left unused and blocked. These violations were also indirectly acknowledged by the State Audit Office in the course of its inspection. But that is all. No one has been held accountable for breaking the law or for the consequences of these violations. The Prosecutor’s Office says it does not read newspapers, and therefore has not opened a criminal case on this matter. The Chairman of the State Audit Office has not filed a complaint, thereby deliberately blocking the violations as well, and stating that «these operations caused no damage to the economy or the state». Under these circumstances, someone else must file a complaint with the prosecutor’s office, and Socialist deputies could very well do so. The complaint should now be brought not only against those responsible for handling the loan, but also against the Chairman of the State Audit Office, who is deliberately blocking the audit material. To facilitate this work, we are once again setting out the legal violations committed in the use of this loan. 1. THE FIRST VIOLATION: THE PURPOSE OF THE LOAN WAS ILLEGALLY CHANGED. Under the bilateral agreement, the Greek loan was specifically intended for imports for the Albanian economy. Instead of being used for this purpose, it was used to purchase tractors and bread ovens. The State Audit Office also acknowledges this in its reply to our newspaper. Who changed the purpose? By what decision was it done? There is no government decision. This change of purpose was made arbitrarily, on orders “from above.” Only Blerim Çela knows who issued this order; he has blocked the State Audit material. This is also where the economic damage begins. The Greek loan was used to buy Eastern-made “Belarus” tractors at prices three times higher than the official offers coming from the East. In its reply to our newspaper, the State Audit Office acknowledges: «At the time, there were offers for “Belarus” tractors from Eastern markets at much lower prices, but they could not be used by our side through this loan». Is this an argument to justify the high prices? No. Because when Eastern offers were three times cheaper, there was no reason to use the Greek loan for tractors. This is a legal violation that must be reported to the prosecution authorities. - THE SECOND VIOLATION: THE GOVERNMENT DECISION ON THE CRITERIA FOR USING THE LOAN WAS VIOLATED. There is a Government decision on the criteria for using to the Meksi government and Directorate for Medium-Term Support of MAN Enterprises. The State Audit Office also acknowledges this, adding: several interventions». However, contrary to this Government decision on the criteria for using the Greek loan, it was handed over to the National Bank for implementation. The State Audit Office states that this transfer took place «without any written act or decision». The question arises: Who ordered this transfer? If the government decision had to be changed, why was it not changed by the Meksi government itself, which had adopted the original decision? Who stands above the government and issues orders to use the loan unlawfully? Only Blerim Çela knows; he has blocked the State Audit material concerning the Greek loan. - THE THIRD VIOLATION: NO TENDER WAS USED TO PURCHASE THE TRACTORS. The State Audit Office states that no tender was used for the purchase of the entire quantity of tractors and the 20 bread-production lines. The amount involved is around 1 million dollars. Blerim Çela, as a servant of the government, justifies this by claiming that at the time the government decision on tendering in its current form had not yet been issued. Is this justification acceptable? It is not. Blerim Çela himself accused Fatos Na- (Continued on page 3)

Dylber Vrioni, Deputy Prime Minister and Minister of Finance, is the legal representative of the Italo-Albanian Bank - Rilindja Demokratike reconfirms that Mr. Dylber Vrioni was paid in dollars by the Italo-Albanian Bank. - Article 15 of the Statute of the Italo-Albanian Bank: The President of the Bank is the Bank’s legal representative, convenes and chairs the Assembly of Partners..... Albania’s Deputy Prime Minister and Minister of Finance, Mr. Dylber Vrioni, has decided to defend himself by means of someone without a degree. The cyclone in Albanian finance, whose sole aim is to turn the Albanian banks—which are surviving despite their considerable potential—into a heap of bones that the “General of Albanian finance” will soon throw at the feet of the Albanian people, has still not stirred the conscience of Tirana’s highest officials. The double scandal—unconstitutional and financial—is perhaps being skillfully shielded by another, everyday scandal: the pro-government newspaper Rilindja Demokratike. Yesterday it presented the “Vrioni” scandal as a public deception by ZP and its journalists, once again threatening them with the “press law.” Besides this, it continues to refer to Article 47 of the Law on the Bank of Albania, «according to which a member of the governing council of the Bank of Albania must not be a director, shareholder or employee of any other financial institution». The argument from Mr. Vrioni’s office—“I am neither a director, nor a shareholder, nor an employee of the Italo-Albanian Bank”—has also been endorsed by RD, which has demanded an explanation from ZP for not publishing two paragraphs of this document confirming that «Mr. Vrioni was paid in dollars by the Italo-Albanian Bank». These paragraphs clarify that Mr. Vrioni has no employment contract with the Italo-Albanian Bank, thereby confirming, according to RD, that «the aforementioned Article 47 has not been violated». This newspaper has in its … admitted—even though it published it—that In any case, returning to the “Vrioni–RD” argument, we clarify that Mr. Vrioni is President of the Italo-Albanian Bank. Even without an employment contract, we do not know what this adds to or takes away from the President’s suit worn by Mr. Vrioni, Deputy Prime Minister. (Continued on page 2)

YESTERDAY IN THE PEOPLE’S ASSEMBLY The entire plenary session of the People’s Assembly was held yesterday. Although it was the only one during the week, it was not accompanied, as usual, by heated controversy. First, the deputies discussed and approved the draft decree on certain additions to the draft law “On Administrative Offences.” The additions, approved by all the deputies, concerned the manner of enforcing decisions, the forms and timing of the implementation of penalties, and cases of administrative offences. Socialist deputies Caka Abdiu expressed concern about its practical implementation, calling on the competent authorities to take serious measures to ensure rigorous enforcement of the law. The deputies then discussed and approved the draft law “On Value Added Tax.” The draft law submitted for approval is part of the new tax system and, according to deputy Ruli, who spoke on behalf of the committee, marks pro- (Continued on page 3) gress in this direction. Value added tax is now applied in all the countries of the European Community and began to be applied in the countries of our continent after the 1960s, having been recognized as highly effective. Not previously applied in our country, it will fill many gaps in the tax system, making it simpler at all its levels and enabling better administration as well. The draft law provides relief for investments made in our country when their profit exceeds 2 million lekë and they become subject to this tax. Deputy Cani, addressing… (Continued on page 3)

We return once again to the issue of purchasing tractors and bread ovens with the Greek loan.

All members of the FRESSH Steering Committee are notified that they have a meeting on Saturday, April 29, 1995, at 11:00, at the headquarters of the FRESSH Steering Committee in Tirana. Announcement The Socialist Party Committee in Durrës informs Party members and supporters that today, Friday, April 28, 1995, at 17:30, a large rally will be held at the Sports Palace. Deputies and leaders of the Socialist Party will take part in the meeting. Socialist Party, DURRËS.