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26 November 2010
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Corruption Threatens Kosovo's New Democracy
Luan Mazreku, KPPC Senior Fellow
This article by Mr. Mazreku, KPPC's Senior Fellow, was originally
published in PA TIMES on 1 November 2010 and can also be found
here.
Kosovo declared independence from Serbia on February 17, 2008, and
thus far 71 countries, including the United States and most European
nations, have recognized it as a sovereign state. Irrespective of
their ideological leanings, all Kosovo leaders stand firm in their
conviction to join the European Union, which they view as a
steadfast route to meaningful democratic governance and economic
prosperity. Admission into the EU, however, is sanctioned by
satisfying the Copenhagen Criteria, which among others, requires
countries that they have democratic government institutions, uphold
the rule of law, and have a market-based economy. Kosovo government
adopted an all-encompassing reform project called FRIDOM (Functional
Review and Institutional Design of Ministries) to substantially
reform governance whereas the European Union deployed a civil
mission in 2008 called EULEX to assist in the area of law
enforcement, judiciary, and customs. Despite the efforts of the
Kosovo government to reform governance and enforce the rule of law,
and the several arrests of public officials by EULEX and the Kosovo
police, it is systemic and rampant corruption that undermines the
solidifying of democratic institutions at all levels of government.
Further, a moribund economy characterized by extremely
high-unemployment rates and organized economic crime, severely
impede the viability and successful continuity of government
reforms.
As a sweeping plan, the FRIDOM project targets eight core areas in
dire need of change: human resources, institutional organizing,
communication with citizens, public administration management,
electronic government, public finance, and anti-corruption policies
and legislation. This broad reform seeks to depoliticize public
administration, establish a merit-based system in civil service,
make government procurement transparent, and develop e-governance.
The success of these reforms varies and is subject to only political
interpretation because no independent research studies have
conducted that would give any validity to the claims of government
or opposition leaders. However, the most visible change is the
establishment and operation of e-government. In less than two years,
the government has managed to install a central portal where
citizens can easily access different government ministries, the
Parliament, the Office of the Prime Minister, and the Presidency.
Albeit an ambitious project that is only in its infancy, access to
online government information is particularly difficult, considering
that power supply in Kosovo is not stable and citizens experience
shortages quite frequently. High poverty rates and poor internet
connections further impede access to and interaction with government
web sites. A significant number of citizens cannot afford to pay for
internet because the unemployment rate goes well over 40%. Internet
connection is characteristically poor in rural areas. Despite
noteworthy success in e-governance, the systematic engagement of
public officials in corruptive practices has remarkably weakened the
attainment of government reform goals. Investigations by the Kosovo
Anti-Corruption Agency, the Kosovo Police, and EULEX show promising
signs that government corruption is under attack.
A report released in late October, 2010 by Transparency
International includes Kosovo for the very first time in its
Corruption Perceptions Index and shows that Kosovo leads the region
as having the most corrupted public institutions. Further, according
to the independent Kosovo Anti-Corruption Agency, the number of
cases where public officials were charged with corruptive practices
has increased by 28 % during the last year, or from 53 cases in 2008
to 68 cases in 2009. Corruption has increased in the courts, local
government, and the central government, whereas corruption in other
public institutions (e.i., Kosovo Electro-Energy Corporation, Kosovo
Privatization Agency, Pristina International Airport, or the Post
Telekom of Kosovo) remained the same as in 2008 at 13 criminal
corruption cases filed. The charges against these officials range
from abuse of official duty, issuance of unlawful judicial
decisions, embezzlement, falsification of official documents, and
accepting bribes. The EU’s EULEX and the Kosovo police have been
central to combating corruption and upholding the rule of law. These
entities have launched investigations, made arrests, and convicted
several individuals who hold prominent positions in public
institutions.
On July 13 of 2010, Ilir Tolaj, a former Permanent Secretary and
advisor at Ministry of Health, was arrested on charges of tax
evasion. Later, he was released on bail. In late April of this year,
EULEX raided the Ministry of Transport and Telecommunication’s
building and the house of its minister, Fatmir Limaj, on suspicion
of soliciting bribes, money laundering, organized crime, abuse of
public office, and fraud in the ministry. The raids caused friction
between EULEX and the government led by Hashim Thaci.. Although no
charges have been filed against Minister Limaj, an IT administrator
of this ministry was arrested on charges of obstruction of justice
in late July and the investigation still continues. Nevertheless,
while EULEX investigations have yet to result in the arrest and
conviction of any of the top politicians, its work into other public
institutions has been significantly more aggressive in targeting
their leadership.
On July of 2010, the governor of the Kosovo Central Bank, Hashim
Rexhepi, was arrested on charges of evading taxes, trading
influence, and money laundering. Later, receiving bribes over the
issuing of licenses to insurance companies and abuse of official
positions were added to Rexhepi’s charges. A Kosovo court convicted
former Pristina District Court judge Elez Hoxha for receiving 53,
000 Euros in bribes. This is an enormous amount of money when
compared to 2,500 euros, the annual capita income in Kosovo, one of
the poorest nations in Europe. While some politicians may tout these
police actions in battling corruption as indications of their total
success, the report by Transparency International clearly
demonstrates that the people of Kosovo have much higher
expectations. The very fact that Kosovo leads all its Balkans
neighbors in corruption emphasizes the perceived prevalence of the
ethical bankruptcy in public institutions.
An intensified and results-based campaign will demonstrate to the
citizens of Kosovo that the fight against corruptions is making more
than insufficient progress. The success of anti-corruption
strategies ultimately rests on the political will of the government
to bridge the gap between rhetoric and action by embracing a
zero-tolerance policy towards corruption even if corruption exists
within government halls. Further, success on combating corruption
also depends upon the consciousness of citizens and businesses to
refuse to participate in these practices and confidentially expose
them to the appropriate institutions.
Sometime within the next few months, Kosovo will go into early
elections following the breakup of the government coalition between
the Democratic Party of Kosovo led by Hashim Thaci and the
Democratic League of Kosovo led by Fatmir Sejdiu. Regardless of the
outcome of these elections, the new government must commit itself to
raise the bar in terms of pursuing government reforms and fighting
corruption at all levels and public institutions. Kosovo’s need to
strengthen democratic institutions is essential to avoid becoming a
failed state. Ensuring government transparency, uncompromisingly
fighting corruption, and indiscriminately upholding the rule of law,
and developing a competitive economy are its best bet for EU
admission.
Luan Mazreku is a senior fellow at the Kosovo Public Policy Center.
Email:
luan.mazreku@kppcenter.org
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