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"The State Attorney's Office among the institutions with the greatest financial damage"

2026-04-10 11:38:45Biznes SHKRUAR NGA REDAKSIA VOX
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The State Attorney's Office, the key institution tasked with the legal protection of the interests of the Albanian state, is among the institutions with the highest negative financial impact on the budget. According to audit data from the Supreme State Audit Office (SSA), this institution ranks second, after Customs, on the list of institutions that have caused the greatest financial damage, part of the approximately 1 billion lek categorized as missing revenue.

"The State Attorney's Office among the institutions with the greatest

The audit findings point to a number of structural and functional problems in the way the State Attorney's Office manages court cases and the liabilities arising from them. Instead of functioning as a protective and preventive mechanism for public finances, the institution appears to have failed to minimize the costs arising from court decisions, especially international ones.

"The State Attorney's Office among the institutions with the greatest

One of the most prominent issues is related to delays and inactions in the recognition and enforcement of decisions of the European Court of Human Rights (ECHR) and international arbitration. These delays have had direct financial consequences, including additional penalties and interests, as well as inefficient use of public funds.

The data shows that there are currently 6 cases pending at the ECHR against Albania, with a potential compensation value of around 17.9 million euros. On the other hand, in international arbitration, the Albanian state faces an even higher financial exposure: just 4 lost cases amount to a total cost of over 180 million euros, not including judicial and representation expenses that amount to over 11.5 million euros.

The problem lies not only in losing cases, but also in their management. Of the arbitration decisions where Albania has emerged victorious, only a very small proportion has been recognized and executed in the Albanian judicial system, limiting the benefits that could accrue to the state budget. Meanwhile, in cases where the state has lost, delays in execution have brought additional costs in the form of interest.

The SAI also points out significant weaknesses in the control and supervision of the activity of state lawyers. Inspections have been carried out in a fragmented manner, focused on individuals and not on the performance of the offices as a whole, thus not guaranteeing transparency and effective accountability. At the same time, the electronic file management system remains incomplete, without a clear overview of the number and status of cases, which significantly increases the risk of lack of information and ineffective decision-making.

The functioning of collegial structures within the institution has also proven problematic. The Consultative Council on ECHR Issues and the State Bar Association have held few meetings and have not fulfilled their role in strategic orientation and legal advice, weakening the institution's capacity to proactively protect the interests of the state.

In the financial and administrative plan, the situation is equally worrying. The lack of a risk management strategy, the lack of internal audit and staff performance evaluation, as well as problems in the division of tasks due to the lack of human resources, create a breeding ground for mismanagement and conflict of interest. During the audited period alone, court decisions were executed for former employees in the amount of 5.6 million lek, while payments made without complete documentation were also found, causing economic damage.

In this context, the role of the State Attorney's Office as a protector of the state's interests is seriously under discussion. The law defines this institution as the exclusive provider of legal assistance to the public administration, including advice and representation in court proceedings. But audit data show that in practice, the lack of efficiency, coordination and control has produced the opposite effect: increased costs and high financial exposure for the state budget.

The findings of the SAI highlight the urgent need for a deep reform of the functioning of the State Attorney's Office, starting from strengthening professional capacities, improving case management systems, to increasing institutional accountability. Otherwise, the risk that this institution will continue to be a source of costs for public finances remains high. / ekofin.al

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