The Supreme State Audit Office has denounced the National Water Supply and Sewerage Agency for illegally forgiving 2.2 million euros in penalties to the Gjikuria company.
According to the Albanian Supreme Audit Office, these were fines that the company should have paid due to 3-year delays in the implementation of two public contracts, the Wastewater Treatment Plant and the KUZ system, Drimadhë, Dhërmi, and the "Water supply to the tourist areas of Drimadhë, Dhërmi and the improvement of the water supply network of the village of Dhërmi"
Excerpt from the HSE report
From the audit of the contracts, the KSAI has determined that both of these investments are over 3 years behind schedule from the contract deadlines, causing great damage to the state budget and citizens in the form of non-receipt of service.
Through a special audit report, the SAI has requested the National Water Supply and Sewerage Agency to immediately initiate procedures for the collection of these penalties, which constitute pure economic damage to the state budget.
Since October 2021, AKUM has been led by Klevis Jahaj, who in these elections was elected MP from the ranks of the Socialist Party in the Fier district.
Tenders
Both tenders were held in August 2020 and had a heavy bill for the citizens. More specifically, the contract for the Wastewater Treatment Plant and KUZ System, Drimadhë, Dhërmi was signed on August 17, 2020 between AKUM and the winning company, Gjikuria.
This contract had a value of 4 million euros and according to the contract, the investment had to be completed within 12 months from the date of commencement of works. But even though works officially started on September 1, 2020, this investment has not yet been completed.
"Contract no. 2135, dated 17.08.2020, with the facility "Wastewater treatment plant and KUZ system Drimadhë, Dhërmi", where it results that the subject is 796 days late, this was also confirmed by the working group established at AKUK for the monitoring and implementation of this contract. The unapplied value of the penalty against the Economic Operator is 159,321,194.78 lekë or 1,593,211.95 Euros, which are considered missing revenue in the state budget," the SAI report states.
But this is just one of the investments that Gjikuria has left on the streets. The other project is the one for water supply to the tourist areas of Drimadhes, Dhërmi and the improvement of the water supply network of the village of Dhërmi. This tender had a value of 2.25 million euros and the contract was signed in August 2020.
This time, the winner of the tender was a consortium of 3 companies consisting of Gjikuria, 4 AM and Rej, with Gjikuria as the leading operator.
"According to the correspondence, and taking the date of completion of the works as 30.03.2023, the economic operator is 456 days late. The value of the penalties not decided by the Contracting Authority is 61,831,577.41 lek or 618,315.77 Euro," the KLSH audit report states.
In total, for both contracts, the Gjikuria company was forgiven over 2.2 million euros in penalties for non-fulfillment of the contract.
But despite this, the Water Supply and Sewerage Agency has not only not imposed a penalty on the company, but has continued to supply it with large contracts. The last in line was that of "Water Supply of Coastal Areas, Strategic Investment Zones of Draleos, Drimadhes and Dhërmi, First Phase, 2023, worth 7.5 million euros.
The KLSH says that this contract was awarded to the Gjikuria company in complete violation of the law. "AKUK itself is clear and aware of this company not respecting the deadlines in the implementation of contracts, therefore it does not provide guarantees in this implementation. Despite these facts, it again selects the winner in the procurement procedure held in October 2023, with the object of" "Water supply to coastal areas, Strategic Investment Zones of Draleos, Drimadhes and Dhërmi, First Phase," the KLSH says in the report.
In the end, the SAI recommended that the National Water Supply and Sewerage Agency immediately initiate procedures to collect 2.2 million euros in penalties from the Gjikuria company and take disciplinary measures against employees who tolerated this situation.
Editorial
