This Is Money Politics

NUMBER 14 Botim i Qendrës Kosovare për Gazetari Hulumtuese (QKGH). Paper edited by: John F. Millikin; Photogrphy: Lorik Bajrami; Reporters: Besa Kalaja; Besnik Boletini; PERIODIC GAZETTE OCTOBER 2015 Leonida Molliqaj; Kosovare Lalinovci; Qendrim Bunjaku. Phone: 038 248 506. E-mail: [email protected]. www.preportr.com OVER 220 MILLION TO POLITICAL PARTIES’ FINANCIERS this is money politics

BESA KALAJA, QËNDRIM BUNJAKU, KOSOVARE LALINOVCI, LEONIDA MOLLIQAJ OCTOBER 2015| NR 14 2 PERIODIC GAZETTE Money politics

Political party donors gained about 220 million Euros from public tenders in the course of a period of time between August 2007 and May 2014. Preportr research shows that PDK donors lead in terms of the total amount gained from public tenders. Vetëvendosje! donors are the second, followed by AAK, AKR, and LDK donors as the last one in this list.

BESA KALAJA, QËNDRIM BUNJAKU, KOSOVARE LALINOVCI, LEONIDA MOLLIQAJ

If money translates into in- whereas LVV donors received of parliamentary parties (apart the Kosovo Assembly has not yet ments, this was not the case with fluence which enables seizing of around 60 million Euros from from those that appear on the of- managed to select auditors to per- the other three parties, the LDK, a public good, then the best chan- public tenders. The total amount ficial site of the CEC), the list of form the audit of annual financial AKR, and AAK, even though they nel to realize a gain appears to be that donors of the other three po- assets registered in the name of statements and expenditures of were part of the government for through a political party. The fi- litical parties (LDK, AAK, and the party, bank accounts, bank political parties during elections a long time. In this aspect, data nancing of political parties, es- AKR) gained is less than 14 mil- transactions, the account of the for the years 2013 and 2014. shows that LDK donors in partic- pecially during electoral cam- lion Euros. The Democratic Par- party at KTA, lists of people who ular gained the least from public paigns, proves to be the quickest ty of Kosovo and Vetëvendosje!, get their salaries from the party, Nature of funding of political par- tenders. A concrete case for this and the safest way possible to re- besides a rather similar financing access to the entire party archive ties is the Municipality of Prishtina, alize profit on an investment. Fi- physiognomy, have even the same related to the list of donors since The report shows that the two which, though run by the LDK nancial support for political par- donors in certain cases. The Dem- party establishment (physical and main sources of funding of polit- since after the war, gave more ties and candidates during elec- ocratic League of Kosovo, even legal entities), the full list of con- ical parties come from the pub- than 13 million Euros of pub- toral campaigns might not have though second in row in terms tributions received from private lic budget, and external donors lic tenders to PDK donors. The a huge influence on the final elec- of the number of votes, declared companies which have contracts in the form of cash or contribu- data show that LDK donors re- tion result, but Preportr findings the least income from donors, with state institutions, and ac- tions in goods and services. In this ceived 419,631 Euros from pub- prove that political party support- and consequently its financers cess to receipts archives related line, the PDK and Vetëvendosje! lic tenders; AAK donors received ers were exponentially compen- gained the least from public ten- to goods and services contract- have a similar nature of funding, 9,767,240 Euros, whereas AKR sated through public tenders for ders. The two other parties, AAK ed by the party. (i.e. for the two political parties donors received 3,089,817 Euros. their contributions. and AKR, are based on donations Preportr waited for an answer the main sources of funding come The LDK and AAK declare Based on data subject to Pre- coming mainly from party mem- for nine months, but despite some from the state budget, and differ- most of their incomes as incomes portr research, in the course of bers – in the case of the AAK – efforts, no parliamentary politi- ent donors which are at the same from the budget, but even in cases seven years (August 2007 - May or relatives of the president – in cal party allowed access to this time the main beneficiaries of mil- when they declare income from 2014), it turns out that some po- the case of AKR, which makes information and the requested lions of Euros from the public donations, most of those are un- litical party donors - business en- the latter mainly a party of fam- documents. OSCE replied that budget.) The Democratic Party der the names of party members. tities and owners – gained around ily donations. they have submitted to the CEC of Kosovo and Vetëvendosje! de- In the audit report of 2009, the 220 million Euros in the form Due to lack of access to offi- all annual financial reports of po- clare income from external physi- LDK declared income from the of public tenders. The research cial data of all contributors to political parties, including expendi- cal entities, not excluding private selling of assets without men- shows that donors of the Dem- litical parties related to the peri- ture reports during electoral cam- businesses, as their donors with tioning said asset that was sold. ocratic Party of Kosovo (PDK), od between 2000 and 2008, ÇO- paigns for the period from 2000- much higher amounts compared These incomes constitute more which ran the government of HU! and the Kosovo Center for 2008. The latter declared to have to other political parties. than 50% of LDK income for the Kosovo for seven years, are on Investigative Journalism submit- destroyed these reports as a result Preportr research showed that 2009 campaign. In the case of the top of the list of winners of pub- ted several requests for access to of a lack of space to archive them. the donors of the biggest polit- AAK, we come across 4-5 names lic tenders, followed by donors of public documents to the Central In terms of an audit of annual ical rival of the PDK, Vetëven- that are in high positions in the Vetëvendosje! (LVV). Donors of Election Commission – CEC, and financial statements and expen- dosje!, besides being the same as party, and most of the incomes the Democratic League of Kosovo Organization for Security and ditures during local and national the ones of PDK in certain cas- listed as donations are declared (LDK), Alliance for the Future of Cooperation in Europe - OSCE, elections for 2013 and 2014, due es, are second in the list to gain under their names. Kosovo (AAK), and New Koso- but also to parliamentary parties to lack of constituting of institu- the most tenders from public in- A completely different na- vo Alliance (AKR) gained far less involved in this research. tions for six months, the Republic stitutions. The total amount of ture of funding is the party of Be- income from tenders compared These requests asked for: ac- of Kosovo Assembly did not man- tenders gained by PDK donors hgjet Pacolli, which, during the to donors of the PDK and LVV. cess to all audit reports (annu- age to engage auditors to audit is 162,517,080 Euros, whereas last election, did not even manage In total, Preportr was able to al financial reports and expen- financial statements of political LVV donors received 59,701,559 to pass the electoral threshold. show that PDK donors gained diture reports during elections) parties. However, though func- Euros. With many breaches of the law, more than 160 million Euros, since the time of establishment tional from December last year, According to official docu- relatives of the president of this OCTOBER 2015| NR 14 PERIODIC GAZETTE 3

PDK incomes (2009-2012)

2009 2010 2011 2012 1,060,500,00 BUDGET BUDGET BUDGET BUDGET 557,063,93 557,068,88 479,239,00

MEMBERSHIP FEE MEMBERSHIP FEE MEMBERSHIP FEE MEMBERSHIP FEE 57,101,00 125,782,73 23,105,00 3,674,00

DONATIONS DONATIONS DONATIONS DONATIONS 30,757,84 351,784,73 41,510,00 36,847,00

CONTRIBUTIONS IN CONTRIBUTIONS IN CONTRIBUTIONS IN CONTRIBUTIONS IN GOODS AND SERVICES GOODS AND SERVICES GOODS AND SERVICES GOODS AND SERVICES 6,277,00 22,852,00 7,200,00 8,700,00 Source: Central Election Commission (CEC), financial reports and audits

LVV incomes (2009-2012)

In 2010, Self-Determination 2010 did not declare any income 2011 2012 form the state budget, since in this year it was registered BUDGET as a political subject at the BUDGET BUDGET THE INFORMATION CEC 27,336,62 465,499,70 IN THE GRAPHICS MEMBERSHIP FEE MEMBERSHIP FEE MEMBERSHIP FEE REPRESENTS THE 10,215,00 867,00 1,551,50 INCOMES OF DONATIONS DONATIONS DONATIONS POLITICAL 96,505,00 171,471,23 100,855,00 PARTIES DURING CONTRIBUTIONS IN CONTRIBUTIONS IN CONTRIBUTIONS IN GOODS AND SERVICES GOODS AND SERVICES GOODS AND SERVICES 2009-2012 7,111,72 65,445,90 495,71

Source: Central Election Commission (CEC), financial reports and audits

party, Behgjet Pacolli, financed ty, and as compensation, they se- paigns with public tenders), po- lic institutions) regarding the this party. INCOMES DECLARED BY THE lectively win public tenders. This litical patronage (employing party benefits of PDK donors. The re- During research, Preportr kind of relationship is stretched members and supporters in civ- search found that the businesses LVV FROM LEGAL ENTITIES found several shortcomings in along all government levels, both il service, public companies and which funded the PDK received audit reports. One shortcoming (BUSINESSES) AND PHYSICAL locally and centrally, and affects independent agencies), and nep- 216 tenders from these institu- is that categories of incomes for ENTITIES (ONLY THOSE THAT many institutions. otism (employing family relatives tions, worth a total amount of political parties, such as the “oth- OWN BUSINESSES) DURING After coming into power, of party members in civil service, 33,875,752 Euros. er incomes” category, do not ex- the Democratic Party of Koso- public companies, and indepen- During 2009-2012, the PDK 2009-2012. plain the nature of the incomes. vo awarded B2 Company, which dent agencies). received 333,460 Euros from Also, these reports contain errors worked for the electoral cam- In total, Preportr research businesses or owners of busi- such as where IDs of donors do LVV paign of this party during the could identify that 52 subjects nesses in the form of donations, not correspond with the names of 2007 elections. Only a few weeks that funded the PDK, as physical while some of them in return donors, which makes it more dif- 161,000 Euros from after gaining power, the Demo- or legal entities, received 325 ten- were awarded tenders reaching ficult to identify said donors and 100 legal (businesses) cratic Party of Kosovo, without ders from public institutions, to- an amount of over 162 million the benefits they might have re- and physical entities (60 opening a call, awarded this com- taling an amount of 162,517,080 Euros. ceived from public tenders. natural persons, 40 legal pany with a fund for the celebra- Euros. Preportr was able to identi- tion of Independence Day on Feb- Preportr put a special empha- fy three companies that funded INCOMES DECLARED BY THE persons) ruary 17, 2008, to the amount of sis on two specific Ministries, the PDK and LVV, which were PDK FROM LEGAL ENTITIES 562 thousand Euros. the Ministry of Education and awarded 27 tenders amounting But this was just the begin- former Ministry of Transport – to 15,071,901 Euros. (BUSINESSES) AND PHYSICAL The PDK: A gravitational field for ning of a complex relationship now Ministry of Infrastructure, ENTITIES (ONLY THOSE THAT donors between donors and the PDK. which had larger budgets than Vetëvendosje!, small but plump Political party relations - es- OWN BUSINESSES) DURING During their seven years in pow- other institutions between the Although registered very late pecially ones involving the PDK 2009-2012. er, the PDK gave tenders for its years 2007-2014. Preportr down- as a political party (in 2010), – with businesses are established donors amounting to hundreds of loaded all signed contracts from Vetëvendosje!, unlike the LDK with close ties in which, based on millions of Euros. Previous Pre- these Ministries for the above- and AAK, declares many do- PDK academic terminology and the portr researches, including this mentioned period, showing that nors, some of whom are estab- quite expressed nature of the 333,000 Euros from current one, show that in order some of the PDK donors re- lished PDK donors for years in practice in the country, may be to keep and consolidate its power ceived 109 tenders amounting a row. Preportr research shows 224 legal (businesses) considered to contain forms of on all levels, the PDK has skillful- to 128,641,328 Euros. that Vetëvendosje! donors were and physical entities (127 clientelism. This relationship oc- ly used different means such as: Preportr also conducted an awarded much more than the do- curs when different individuals natural persons, 97 legal clientelism (selectively awarding additional research based on a nors of the other three parties that and businesses give money during persons) companies and individuals that random sample with other insti- were in power on a central and lo- electoral campaigns for the par- have supported the party and its tutions (municipal assemblies, cal level, such as the LDK, AAK ty or individuals within the par- members during electoral cam- public companies and other pub- and AKR.

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ISMET KONUSHEVCIN BENI COM JAKUP BERISHA MERKATORI FADIL SHALA COMPACT GROUP STUBLLA GAVE > 4,900 € GAVE > 500 € GAVE > 2,577 € Compact Group gave GAVE > 9,700 € REWARDED > 19,207,084 € donations to LVV as well REWARDED > 10,044 € REWARDED > 153,831 € REWARDED > 5,398,941 € 16 TENDERS 7 TENDERS 5 TENDERS 4 TENDERS 10,400 € (5 tenders in the amount of 8,914,047 Euros were won HASHIM DESHISHKU HASHIM DESHISHKU, KADRI in consortia with other bidders: "Abb", "Trasing LESNA & SIGKOS SHALAKU, AGIM DESHISHKU Group", "Kalabria" dhe "Eskavatori) 151,007 € NLB PRISHTINA FLORIM ZUKA TALI SKENDER GASHI ALFA BEN-AF donated from GAVE > 4,000 € GAVE > 20,000 € EURO COOP & EURO COOP 1 GAVE > 2,500 € GAVE > 4,400 € REWARDED > 100,271 € GAVE > 7,000 € REWARDED > 14,369,241 € GAVE > 500 € REWARDED > 581,167 € donated from businesses and business 8 TENDERS 1 TENDER BUJAR SHABANI BAGERI REWARDED > 548,829 € (annual interest offered: 3.20%) 14 TENDERS REWARDED > 24,414 € 3 TENDERS GAVE > 1,000 € 8 TENDERS (2 tenders in the amount of 4,955,486 euro were in 4 TENDERS (1 tender in the amount of 403,904 was in consortium (1 tender in the amount of 434,240 Euros in businesses and business REWARDED > 10,702,276 € consortia with two other bidders: "Eurkos" and with “Jehona”) consortium with “Apetiti") owners that received MUSLI ZUBAKU GLOBAL PROJECT "Integral") FADIL SHALAKU SHALA TRADE 22 TENDERS GAVE > 400 € owners that received GAVE > 2,000 € (One tender in the amount of 3,825,397 euro was ZYMER VELIU EURO PROJECT REWARDED > 290 € rewarded in consortium with “R&Rukolli”) Florim Zuka gave ARD GROUP 13 tenders 1 TENDER GAVE > 2,000 € 1 TENDER donations to LVV as well GAVE > 3,000 € (the price on the contract is 40 Euros DUD) REWARDED > 118,010 € Ben-Af gave donations to REWARDED > 8,739,136 € 325 tenders worth a total amount of MUSTAFË BAJRAKTARI BAJRAKTARI 4 TENDERS LVV as well RRUSTEM RUKOLLI R&RUKOLLI (1 tender in the amount of 2,048 Euros in consortium 1 TENDER TEUTA SAHATQIU GAVE > 500 € (in consortium with "Drini Company") IDEA COMMUNICATION XHAVIT ÇOLLAKU UNIKAT GAVE > 5,000 € with "C-HE") worth a total amount of REWARDED > 123,287 € 419,631 € GAVE > 1,500 € GAVE > 400 € REWARDED > 21,843,595 € 1 TENDER REWARDED > 4,928 € REWARDED > 14,142 € 12 TENDERS NUHI PROVOLIU MEDICUS BURIMI 162,517,080 € ( 2 tenders in the amount of 8,657,932 Euros i 1 TENDER 1 TENDER GAVE > 4,000 € consortium with two other bidders - "Vëllezërit e GAVE > 310 € DATAPROGNET BASRI KQIKU BEJTA COMMERCE Bashkuar" dhe "TBW-Technische Buro Werner") REWARDED > 12,953,264 € REWARDED > 100,000 € GAVE > 100 € GAVE > 10,000 € 1 TENDER 2 TENDERS (two tenders in consortia with "Eurokos" and REWARDED > 1,718,796 € REWARDED > 8,563,098 € (in consortium with 13 other bidders) MUSTAFË SHALA ADEA GROUP "Drenica") 15 TENDERS 9 TENDERS GAVE > 2,577 € REWARDED > 34,399 € ELBASAN ALIDEMA METALI GRANITI 2 TENDERS TEKNIKA 2001 VIKTOR DELIA DELIA GROUP GAVE > 3,337 € GAVE > 1,000 € GAVE > 1,000 € GAVE > 500 € REWARDED > 619,646 € REWARDED > 376,445 € REWARDED > 108,600 € VEGIM GASHI REWARDED > 11,760,439 € 23 TENDERS KOMTEL PROJECT ENGINEERING REXHEP LIMANI AGROCOOP 16 TENDERS 2 TENDERS 1 TENDER GAVE > 2,234 € GAVE > 1,000 € REWARDED > 1,137,262 € REWARDED > 318,128 € JETON BYTYQI MULTI BUSINESS GROUP I.T.K 9 TENDERS 3 TENDERS VELLEZERIT JAHA RESHAT KAMBERI ENGINEERING GAVE > 250 € GAVE > 986 € (1 tender in the amount of 499,500 Euros in GAVE > 2,500 € consortium with " Land Gyr") GAVE > 2,000 € REWARDED > 123,086 € REWARDED > 856,283 € 76 ENTITIES REWARDED > 3,116 € REWARDED > 1,735,641 € 7 TENDERS 8 TENDERS NEHAT MUSTAFA ALTAVIA TRAVEL (1 tender in the amount of 59,951 Euros in consortium 2 TENDERS DONATED 3 TENDERS XHAVIT PACOLLI, BEHGJET PACOLLI GAVE > 100 € with "Renelual Tahiri) 12,828 € SIGURIA REWARDED > 822€ JEHONA GAVE > 5,915 € FLORIM KRYEZIU FERBAING 6 TENDERS NDËRTIMI 264,416 € SAFET SINANI NDËRTIMI GAVE > 2,000 € donated from REWARDED > 61,304 € GAVE > 400 € GAVE > 3,500 € GAVE > 2,000 € REWARDED > 1,021,727 € 5 TENDERS REWARDED > 5,318,179 € FOR FIVE POLITICAL PARTIES REWARDED > 82,088 € REWARDED > 276,190 € 2 TENDERS businesses and business ABEDIN BEHLULI ARIANITI-A 2 TENDERS (1 tender in the amount of 403,904 was in consortium 5 TENDERS 4 TENDERS (3 tenders in the amount of 4,981,218 were in GAVE > 500 € with "Alfa") consortia with other bidders: "Vëllezërit e Bashkuar", owners that received HAJRIZ ALSHIQI DOOR-TO-DOOR REWARDED > 341,099 € "Shkoza 07" dhe "Eurofamis") GAVE > 1,000 € NAIM BESIMI GETOARI 3 TENDERS SHPEND MUSA VISION PROJECT THESE ENTITIES WON REWARDED > 40,571 € GAVE > 500 € MAGJISTRALJA GAVE > 1,000 € MATI COM 42 tenders 1 TENDER GAVE > 23,500 € REWARDED > 6,186,870 € REWARDED > 363,035 € 442 TENDERS AMOUNTING TO REXHEP FERIZI AUTO BOSCH REWARDED > 1,785,493 € GAVE > 1,000 € 13 TENDERS 7 TENDERS (2 tenders in the amount of 993,446 euro were in GAVE > 2,500 € (1 tender in the amount of 73,022 Euros in consortium 6 TENDERS REWARDED > 284,253 € worth a total amount of BURIM SALIHU IDEA CONSULTING consortia with two other bidders: "Eurovia" and REWARDED > 83,940 € with "Pro Group") 1 TENDER "Flori") 220,624,776 € GAVE > 670 € 1 TENDER 3,089,817 € REWARDED > 3,300 € SHKOZA F07 1 TENDER FLORINA ZYMBERI MEGA KASTRIOT FAZLIJA KASTRIOTI GAVE > 2,500 € RENELUAL TAHIRI FROM PUBLIC INSTITUTIONS SHPEND MUSA CIPA PROTECH GAVE > 10 € GAVE > 1,000 € REWARDED > 4,269,254 € GAVE > 1,000 € REWARDED > 1,078,834 € REWARDED > 1,542,510 € GAVE > 1,000 € 6 TENDERS REWARDED > 1,997,280 € SAMILE KRASNIQI RE ENGINEERING 3 TENDERS 2 TENDERS REWARDED > 42,343 € (1 tender win the amount of 1,997,960 was in 17 TENDERS GAVE > 1,000 € consortium with "Ndërtimi") (1 tender in the amount of 626,276 euro was in 3 TENDERS REWARDED > 484,268 € consortium with "Ndërtimi") 1 TENDER AVDYRRAHIM KRASNIQI TIMI KERSHKO SOLID COMPANY SED TOURS ISA ELEZI P&I GAVE > 1,000 € GAVE > 1,000 € GAVE > 1,000 € GAVE > 960 € REWARDED > 5,792,435 € REWARDED > 2,795,376 € REWARDED > 1,185,731 € REWARDED > 4,778,881 € 1 TENDER 12 TENDERS 5 TENDERS (In consortium with “AHN Group”) 12 TENDERS

BLERIM KUÇI HIDROTERM VALON TOLAJ GAVE > 20,000 € ACCORD INVESTMENTS-SAH REWARDED > 3,895,728 € GAVE > 700 € 3 TENDERS REWARDED > 28,731.00 € FLORIM ZUKA TALI COMPACT GROUP (In consortium with "Control Products") 1 TENDER GAVE > 100 € GAVE > 700 € (In consortium with "Fidani-L") REWARDED > 14,369,241 € REWARDED > 153,831 € 14 TENDERS 5 TENDERS (2 tenders in the amount of 4,955,486 Euros in 1,590 € 79,200 € RAMIZ KELMENDI ELKOS NISRET HYSENAJ NXM consortium with two other bidders - "Eurkos" dhe "Integral") GAVE > 20,000 € GAVE > 18,500 € The amount of money BEN-AF donated from donated from REWARDED > 14,669 € REWARDED > 50,802 € GAVE > 240 € 3 TENDERS 4 TENDERS SAFER SUSURI REWARDED > 548,829 € businesses and business businesses and business gained from public tenders VLLEZËRIT E BASHKUAR 8 TENDERS (1 tender in the amount of 434,240 Euros in SHKELZEN JUSAJ PETROL COMPANY GAVE > 100 € owners that received consortium with “Apetiti") owners that received GAVE > 20,000 € REWARDED > 9,984,483 € REWARDED > 5,777,310 € 2 TENDERS by donors of ﬁve political (Both tenders in consortium with two other bidders - 26 tenders 5 TENDERS "Ndërtimi" and "Ge Group" I SEFERI 59 tenders GAVE > 100 € worth a total amount of parties (PDK, LDK, LVV, REWARDED > 4,862,610 € worth a total amount of MILAIM ABDULLAHU SANTEFARM ÇLIRIMI 3 TENDERS GAVE > 2,000 € GAVE > 50 € 9,767,240 € REWARDED > 1,363,112 € REWARDED > 3,166,168 € 58,654,875 € 25 TENDERS AAK and AKR), form August 6 TENDERS DRINI COMPANY GAVE > 100 € REWARDED > 26,605,219 € PLUS MARKET 19 TENDERS 2007 to May 2014 (9 tenders in the amount of 8,423,928 Euros in GAVE > 200 € consortium with several other bidders - "RSM", "Alb REWARDED > 11,178 € Building", "Select Prima", "Dreal", "Mirusha" dhe "Ard 2 TENDERS Group"

Physical Entities

Legal Entities OCTOBER 2015| NR 14 PERIODIC GAZETTE 5

Physical Entities

Legal Entities OCTOBER 2015| NR 14 6 PERIODIC GAZETTE

LVV donors received 42 tenders from MEST, MTPT, and MI in the amount of 58,493,257 Eu- ros, while businesses that funded Methodology LVV were awarded 17 other ten- INCOMES DECLARED BY THE ders from other institutions in the LDK FROM LEGAL ENTITIES amount of 1,208,302 Euros. In (BUSINESSES) AND PHYSICAL the course of three years (2010- 2012), LVV received 161,618 Eu- ENTITIES (ONLY THOSE THAT This research by the Kosovo Center for ros from businesses or business OWN BUSINESSES) DURING Investigative Journalism - Preportr and Çohu! aims owners in the form of donations. 2009-2012. to show the monetary benefits received by donors One of LVV’s donors, Flo- rim Zuka, at the time when he of five political parties. This research includes financed this political party, was LDK businesses (legal entities) and persons who own under investigation for a case 58,000 Euros from businesses (physical entities) that financed political known as “MTPT 1”; where be- 43 legal (businesses) and parties with money or contributions in the form of sides other subjects of this in- physical entities (40 natural vestigation were also the former goods and services. minister of this Ministry, Fatmir persons, 3 legal persons) Preportr analyzed all audit reports that have been Limaj, Nexhat Krasniqi, and En- made public for the period 2009-2012 for the five drit Shala. The aforementioned biggest political parties in the country. were indicted in 2013. Florim Zu- ka is the owner of “Tali” compa- Preportr used audit reports to compile a list of ny. He is also a PDK donor. businesses that gave donations to political parties, Preportr found that his com- The amount of these tenders is including also business owners who individually pany received 14 tenders form 419,631 Euros. public institutions, to the amount Nonetheless, this fact does in financed these political parties. The data of of 14,369,241 Euros. no way reveal the transparent na- businesses owned by donors of political parties The research shows that ture of LDK in regard to wheth- were researched, comparing personal IDs that LVV donors were awarded ten- er or not it employed a selective approach when awarding public were declared in audit reports with the database ders amounting to around 60 million Euros, exceeding the amount tenders to its affiliated compa- of business registration at Kosovo Business of tenders awarded to the LDK, nies. The CEC’s reports disclose Registration Agency - KBRA. AAK, and AKR donors collec- the audited accounts as they have Preportr downloaded about 700 contracts tively. been reported by the party itself. In fact, the LDK has constantly signed by the Ministry of Education, Science and Unlike all other parties that are part of this research, LVV is refused access to financial data Technology (MEST), former Ministry of Transport, the only party that made public requested by Preportr. Post and Telecommunication (MTPT), and the their annual financial and expen- Lately, the Office of the Prime Ministry of Infrastructure (MI), covering a period diture reports during elections Minister, run by the LDK, has awarded a contract for a car ser- between August 2007 and May 2014. These data since the time it was part of institutions. Those include reports of vicing company using closed ten- were used to draw information on companies that 2013-2014, but these reports have dering procedures to “Makcar”, won tenders; those were compared with data not been taken into consideration, a company owned by the Prime- from the business registration at KABR, in order considering they were not audited minister’s sons. There were also by an independent auditor. cases, such as that with “AMM”, to identify owners of companies that won public a donor of the LDK, which had tenders. After filling out the database with these LDK – Large but small for a decade held a monopoly on data, Preportr compared these data with the The Democratic League of advertisement in public spaces while the party was running the findings from Central Election Commission – CEC, Kosovo, according to financial statements made public by the capital city. Moreover, the LDK audit reports, in order to create a full review of CEC, during 2009-2012 received was also characterized in Prishti- benefits from public tenders by political party few donations and gave few ten- na Municipality as favoring con- donors from three aforementioned contracting ders, even though it was part of struction companies close to the party. authorities (MEST, former MTPT, and MI). the government both at the central level until 2010 (coming back From the data of the CEC audit reports and from as head of the government after Few donors of the AAK the contracts signed by contracting authorities, the latest parliamentary elections A similar nature of funding of Preportr found that 35 companies (18 donors as in 2014), but also in some munic- the LDK can be found within the ipalities at the local level. More- Alliance for the Future of Kosovo. legal entities and 17 as physical entities) financed over, in Prishtina, the LDK run During campaigns this party was political parties and received around 173 million the local government since after financially supported by party Euros through 147 tenders from these three the war until 2013. members, some of whom are businessmen like Ramiz Kelmendi ministries. During the election campaign of 2010, unlike the one in and Blerim Kuçi. Ramiz Kelmen- Preportr also conducted an additional research 2009, the LDK, which is the sec- di was the deputy of this party in based on a random selection sample on the Internet ond largest party in the coun- the Kosovo Assembly in the previ- for businesses that financed five political parties, try, presented few incomes from ous mandate, and became part of the PDK during the last elections. and found that 52 companies (10 donors as legal external donations. It also declared very few donors during In the previous mandate, Blerim entities and 42 as physical entities) received around 2011 and 2012. In the audit re- Kuçi ran the Municipality of Su- 46 million Euros from 295 tenders from other public ports of finances of political par- hareka. Among others who gave institutions. ties published by the CEC, Pre- donations to this party was the former deputy Burim Ramadani, Preportr found that the businesses which financed portr found that some of the donors of the LDK are businessmen, and Shkelzen Jusaj, a renowned political parties won 442 tenders, benefitting by a however according to the findings businessmen who entered the list total of about 220 million Euros. the majority of them did not win of candidates for deputy during public tenders. the last elections, but who failed The data show that seven to pass the required threshold to companies that funded LDK got enter the Parliament. 13 tenders in public institutions. Five companies that financed the AAK were awarded 26 ten- OCTOBER 2015| NR 14 PERIODIC GAZETTE 7

LDK incomes (2009-2012)

2009 2010 2011 2012 897,747,00 BUDGET BUDGET BUDGET BUDGET 375,462,88 383,728,47 521,079,75

DONATIONS DONATIONS DONATIONS LDK did not declare any 13,000,00 21,306,95 1,090,00 incomes from donations or contributions in goods of CONTRIBUTIONS IN CONTRIBUTIONS IN CONTRIBUTIONS IN GOODS AND SERVICES GOODS AND SERVICES GOODS AND SERVICES services in 2009 10,000,00 20,071,70 5,674,80

Source: Central Election Commission (CEC), financial reports and audits

ders from public institutions. The tenders is 3,089,817 Euros. of the Law the fines are not high: nation of the means they receive amount of these tenders reaches During four years, the AKR political parties are fined between from the fund for support of po- 9,767,240 Euros. received 128,328 Euros from 3,000 and 10,000 Euros, while litical parties. However, besides During 4 years, the AAK re- physical and legal entities in the candidates for deputy and assem- covering some of the activities of ceived 147,200 Euros from busi- form of donations. bly member are fined between 500 political parties, almost all fines INCOMES DECLARED BY THE nesses or their owners in the form and 3,000 Euros. that the CEC imposes on political of donations. Violations of law and small pen- The Law on the financing of parties are drawn from this fund. AAK FROM LEGAL ENTITIES alties political parties specifies in Arti- The first amendment and addition (BUSINESSES) AND PHYSICAL Huge amounts of money in sup- Until mid-2013, the legisla- cle 5 that physical entities may do- that was made to the Law on Fi- ENTITIES (ONLY THOSE THAT port of AKR tion that regulates the funding nate to political parties no more nancing Political Parties favored OWN BUSINESSES) DURING The party of the businessmen of political parties did not con- than 2,000 Euros per calendar political parties by increasing the Behgjet Pacolli received many do- tain any disposition that regulat- year, while legal entities may do- amount of this fund from 0.17 % 2009-2012 nations, exceeding in 2010 even ed the funding of political parties nate no more than 10,000 Euros. to 0.34 % of the budget. the biggest party in the country, by businesses, which at the same Audit reports show that polit- The means that are returned AAK the PDK. During this year, the time provide services or goods ical parties violate the law most- to donors, who donated more 147,000 Euros from AKR received 425,451.43 Euros as for public institutions. Although ly in this point. The fines for this than the Law allows it, are usu- donations; compared to the PDK amended several times, the Law violation are not high. Based on ally withdrawn from this fund. 12 physical entities who received 351,734.73 Euros. on Financing Political Parties still Article 25, point 1 of the Law on The administrator of the PDK, The funding of Pacolli’s par- does not clearly address the re- the Prevention of Money Laun- Halil Selimi, had told Preportr ty is more specific. This party was lationship between the funding dering and Terrorist Financing, that all means that were to be re- supported by family relatives of of political parties and the busi- stating that political parties shall turned to donors were withdrawn the businessman – this, accord- nesses that at the same time pro- not receive monetary contribu- from this fund. ing to his surname. People from vide goods or services for public tions that exceed one thousand his birthplace also supported his institutions. Political parties are (1.000) Euros from a sole source Hiding contributions party. required by law to draft a spe- within one day, and based on Ar- It may happen that those busi- Preportr drew some statisti- cial list of all donors that provide ticle 17.7 and 17.8 of the Regula- nesses or their owners who give cal data from financial statements goods or services for public insti- tion 01/2008 for the Registration donations for political parties in that this party submitted to the tutions, but according to audit re- and Activity of Political Parties, cash or other contributions in CEC. In 2010, out of 195 donors ports, parties do not comply with that in case of receiving unpermit- goods and services during elec- that supported the AKR, 31 of such a requirement. ted contributions, the president of tions, see this form of support as them were named Pacolli, 6 were Even though some work has the party returns the contribution an opportunity to be compensat- Makolli, 2 were Vitia, and 2 oth- been done to complete the legal to the donor. Parties are there- ed by favors in the long run. This ers were Gërbeshi. framework for the funding of po- fore obliged to return unpermit- research cannot tell if different INCOMES DECLARED BY THE In 2011, out of 41 donors, 4 litical parties, the law and CEC ted contributions to the donors. businesses or individuals who AKR FROM LEGAL ENTITIES were named Pacolli and 2 were regulations fail to address a num- Preportr has secured a list of own businesses might have been (BUSINESSES) AND PHYSICAL Makolli. This year, the AKR re- ber of issues that are related to donors to whom political parties obliged to provide donations for ENTITIES (ONLY THOSE THAT ceived a note from the auditor for transparency of finances of politi- were obliged to return money. The political parties in one way or an- receiving funds from abroad, an cal parties. The Law, among other PDK is on the top of this list, but other, especially during electoral OWN BUSINESSES) DURING action that is against the law. things, in no article addresses de- there are also other parties like campaigns, nor if the same do- 2009-2012 In 2012, the AKR was sup- claratively the issue of transpar- Vetëvendosje! for which donors nors would have benefited to those ported by 300 donors, 37 of whom ency of donations or other con- gave much more means than the amounts from public tenders had AKR were named Pacolli, 4 were Ma- tributions received by individu- law permits. they not funded political parties. kolli, 5 were Vitia, and 1 was Gër- als who run for deputy or assem- Political parties violated the In fact, the law does not oblige 128,000 Euros from beshi. bly member during electoral cam- Law when they received money the Office for Registration and 76 legal (businesses) and Donations for this party came paigns. The Law obliges only po- from abroad which is against the Certification of Political Parties physical subjects (73 natural from abroad and reached amounts litical parties to declare received Law on Financing Political Par- at the CEC to undertake full ver- persons, 3 legal persons) that are not allowed under the law. contributions, but does not ad- ties, Article 11, point 1.1 which ifications related to the accuracy As a result of this, the AKR in dress such a request also for can- says: “Ban on financial and mate- of expenses that political parties CEC audit reports turned out to didates who run for deputy. Also, rial assistance shall apply to: 1.1. incur during electoral campaigns be the party with the most viola- the Law sets out very mild pen- government and non government and their declaration. tions of the law. alties for political parties if they foreign institutions, and foreign Nonetheless, this research AKR donors did not receive do not comply with legal require- natural and legal persons.” speaks only of the benefits real- many tenders in public institu- ments. These mild measures in Behgjet Pacolli’s party and ized by different donors who, in tions. fact, have allowed political par- Lëvizja për Bashkim in 2010 re- audited financial reports (2009- Six companies that funded the ties to continuously violate legal ceived money from aboard. 2012) submitted to the CEC, are AKR got 42 tenders from public norms that are in force. Political parties almost never represented as supporters of po- institutions. The amount of these For violations of dispositions declare the purpose or the desti- litical parties. It should be noticed OCTOBER 2015| NR 14 8 PERIODIC GAZETTE

AAK incomes (2009-2012)

2009 2010 2011 2012

BUDGET BUDGET BUDGET BUDGET 150,797,76 150,797,76 153,191,00 396,899,00

DONATIONS DONATIONS DONATIONS 3,800,00 173,500,00 AAK did not declare any 2,000,00 incomes from donations and CONTRIBUTIONS IN CONTRIBUTIONS IN contributions in goods and GOODS AND SERVICES GOODS AND SERVICES services in 2011 2,700,00 16,500,00

Source: Central Election Commission (CEC), financial reports and audits

AKR incomes (2009-2012))

2009 2010 2011 2012

BUDGET BUDGET BUDGET BUDGET 194,811,69 198,793,02 155,355,00 180,210,36

DONATIONS DONATIONS DONATIONS DONATIONS 58,125,52 425,451,43 288,070,00 38,230,00 CONTRIBUTIONS IN CONTRIBUTIONS IN CONTRIBUTIONS IN GOODS AND SERVICES GOODS AND SERVICES GOODS AND SERVICES AKR did not declare any incomes from contributions in goods and 23,530,00 2,013,00 2,815,49 services in 2009 Source: Central Election Commission (CEC), financial reports and audits

that a vast number of companies and individuals who support political parties and their candidates THE AMOUNTS OF MONEY THAT EXCEEDED LIMITS do not appear in financial reports audited by the CEC. SET BY LAW IN 2010 A past research of ÇOHU! demonstrates how companies that deal with the organization of elec- LDK toral campaigns provided services for big political parties, receiv- 2,856.95 € ing compensations that do not exceed 5,000-6,000 Euros, while enormous amounts of cash were given by the very political party LVV officials. Another method used by political parties to avoid offi- 93,207.23 € cial declarations of expenses during elections is the realization of payments using third companies – a marketing company issues a PDK regular receipt to a certain company pretending to have provid- 73,458.00 € ed services, while those services were either provided for a political party, or for individuals who ran for a political position.

Remark: This research has been made possible by the support of the following donors:

Fondacioni i Kosovës për Shoqëri të Hapur Kosovo Foundation for Open Society

Disclaimer: The views, findings, and opinions expressed in this periodical are those of the author organizations; the Organization for Democracy, Anti-corruption and Dignity - Çohu, within which the Kosovo Center for Investigative Journalism (KCIJ) operates, and do not necessarily reflect the official policy or position of any of the project donors.