Elbit System, one of the largest arms manufacturing companies in the world, based in Israel, has opened a branch in Albania. Three days ago, the company registered its branch in Albania with the National Business Center, which will carry out the same activity as its parent in Israel.
Elbit is one of the largest arms manufacturers in the world. Its arrival in Albania is linked to a large secret contract that Albania has signed with this company for the purchase of arms.
Billionaire contract
In July last year, Albania signed a broad military agreement with Israel. The document, signed by the then Defense Minister Pirro Vengu and his Israeli counterpart, was approved by the Council of Ministers.
For many months, Vengu's firm was considered simply a normal agreement between two governments to cooperate in the field of defense. But late last year it was revealed that it was not simply an agreement between two governments, but a secret business worth hundreds of millions of dollars with the private company, Elbit Systems.
In November last year, one of the largest Israeli newspapers, Haaretz, revealed that Elbit Systems had secured a multi-million dollar contract from the Albanian government to supply Albania with heavy weaponry, including mortars and drones. In parallel, the Israeli company will also open an aviation school in Vlora.
The amount of the contract is being kept secret, but several sources from the Ministry of Defense say that it is a deal that could go up to $400 million.
A confidential source told Kapital that the government is considering a scheme similar to the Smart City project, to finance the hefty bill that Albania will pay to Elbit Systems.
According to this source, the Israeli company will find the money in the bank itself. Albania will guarantee the loan with a sovereign guarantee and then assume its repayment, including the hefty interest.
In the corridors of the Ministry of Defense, it is rumored that one of the reasons for the dismissal of Pirro Vengu from the post of Minister of Defense and his replacement with Ermal Nufi was precisely Vengu's reluctance to sign the financial details of this contract.
It is not known whether the signing process has been exhausted after the appointment of Ermal Nufi, who in close circles is also known as Ermal Raketa, due to his willingness to sign anything that is asked of him, so as not to disappoint his boss. Because Ermal does not disappoint, but for the boss he becomes a rocket.
NATO suspension for corruption
Last summer, Elbit Systems was suspended from NATO's procurement agency due to a major corruption scandal involving allegations of bribery and sanctionable practices, according to documents published by investigative media Follow the Money.
The NATO Support and Procurement Agency (NSPA) suspended Elbit Systems and its subsidiary Orion Advanced Systems on July 31. The suspension followed the emergence of serious allegations indicating possible involvement in corrupt practices by the Israeli company.
"The vendor suspensions follow the emergence of serious allegations indicating that suppliers are likely to have engaged in sanctionable practices, including irregularities in the award of contracts," according to a letter from a senior manager at NSPA reviewed by investigative media sources.
The suspension prevents Elbit from competing for new NATO tenders, while the military alliance suspended about 15 ongoing contracts it had with the Israeli company. The legal process continues and so far there has been no final decision from the courts, but the scandal has shaken NATO quite a bit.
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