Repeated legal violations, ineffective management of public funds, and serious weaknesses in institutional control have produced a heavy bill for the state budget.
The Supreme State Audit Office (SSA) in its 2025 Annual Report raises the alarm about an economic damage of 26.2 billion lek in the public administration, as a result of financial irregularities and violations of the legal framework in a wide range of institutions.
During 2025, the SAI conducted 190 audits, issued 222 opinions, and left 4,994 recommendations.
The performance report's findings point to systemic weaknesses in the management of public funds, with a few institutions bearing the brunt of this damage.
State Attorney's Office, over 1 billion lek in damage from poor management of legal issues
The institution with the highest impact is the State Attorney's Office, with around 1.08 billion lek in economic damage. The institution that should best protect the interests of the Albanian state caused the greatest economic damage to the budget last year. According to the SAI, the problem is related to the lack of effective management of judicial cases and international arbitration, where delays and inaction have brought additional costs to the budget. Contingent liabilities from ECHR and arbitration decisions remain high, while the lack of control and supervision of legal representatives has further aggravated the situation.
Taxes and Customs, billions of lek in waste
According to audit data, the damage recorded in the tax system amounts to around 951 million lekë, related to the incorrect fiscal treatment of transactions, including sales below purchase cost or below market prices, unjustified differences in inventory and incorrect VAT crediting.
At the same time, the customs administration is presented with an even higher financial impact, where the economic damage recorded amounts to around 6.33 billion lek, which is also the highest value from state institutions. The audit has found non-realization of revenues from VAT on imports, excise duties and customs taxes, accompanied by tariff misclassifications, incorrect declarations of goods and lack of control over their real value and origin.
The same situation is evident in public procurement. In many concrete cases, the lowest bids have been disqualified without sufficient justification and contracts have been concluded at higher prices, creating a direct negative effect on the state budget.
Protected areas and the environment, nearly 1 billion lek in damage
In the environmental sector, the National Agency for Protected Areas and regional structures resulted in approximately 990.4 million lekë in damage. The audit highlights a lack of inspection documentation, outdated management plans, and failure to register areas in the cadastre, limiting control over the territory and the protection of natural resources.
Cadastre in Tirana, 560 million lek from inaccuracies and poor management
The State Cadastral Agency (Tirana) has caused around 560.2 million lekë in damage, related to problems in the administration of state property and expropriation processes. The SAI evidences overvaluation of properties, lack of transparency and documentation, as well as non-compliance with legal deadlines.
Port of Durres and the transport sector, 434 million lek
At the Durrës Port Authority, the damage amounts to 434 million lekë, mainly due to deficiencies in financial management and administrative procedures, including incomplete documentation and weaknesses in the control of operations.
AKU, 138.8 million lek and risk for food security
The National Food Authority (AKU) is reported to have suffered around 138.8 million lek in economic damage, while the issues identified by the SSA are considered among the most sensitive for the public, as they are directly related to food safety. The audit highlights a lack of traceability of food products along the chain, weak controls accompanied by incomplete documentation, as well as the operation of laboratories without accreditation according to relevant standards. In addition, delays were found in the response to risky products identified through the RASFF system, limiting timely intervention by the responsible authorities. According to the report, these shortcomings significantly increase the risk that unsafe products continue to circulate on the market and be consumed by citizens, compromising the protection of public health.
Water supply and sewerage, 231.8 million lek and lack of control over investments
The National Water Supply and Sewerage Agency results in around 231.8 million lek in damage, with problems in planning and implementing investments, a lack of laboratories in most companies, and a failure to guarantee the quality of drinking water.
At the local level, the Municipality of Fier is recorded with around 234.8 million lekë in damage, while other municipalities contribute through inaccurate financial statements and ineffective management of funds. The SAI emphasizes that in many cases there is a lack of data reconciliation, complete recording of liabilities and tracking of overdue debts. /ekofin.al/
