Investigation uncovers shocking evidence of corruption in Becchetti arbitration case

Investigation uncovers shocking evidence of corruption in Becchetti arbitration case

Photo: Francesco Becchetti

An investigation funded by the Albanian government has brought forward new evidence that casts serious doubt on the legitimacy of a €100 million arbitration award granted to Italian businessman Francesco Becchetti. The findings suggest that Becchetti interfered with the arbitration process to secure a favorable ruling in his International Centre for Settlement of Investment Disputes (ICSID) case against the Republic of Albania. This comes after the French-speaking Court of First Instance in Brussels ruled on October 17 that Eurocontrol, the European organization for air navigation safety, must pay over flight fees collected for Albania to Becchetti, effectively seizing Albania’s foreign assets.

Why is this important: The investigation raises crucial questions about the integrity and fairness of the arbitration process. The €100 million award had significant financial implications for Albania and was used politically to criticize Prime Minister Rama, with claims that he used the judiciary to attack dissenting voices. However, the new evidence suggests that Becchetti’s arbitration victory may have been the result of corrupt practices rather than a legitimate legal win.

Context: The dispute dates back to several years of legal entanglements between Becchetti and the Albanian government. Becchetti, a high-profile entrepreneur known for investments in Albania’s energy and media sectors, founded Agon Channel, a media outlet critical of Prime Minister Edi Rama’s government. His legal battles with Albania began after the government accused him of financial crimes, including money laundering and tax evasion. In response, Becchetti claimed that he was politically targeted and sought international arbitration.

After losing several cases domestically, Becchetti turned to international arbitration, arguing that Albania violated its obligations to protect foreign investors. In 2019, the ICSID ruled in his favor, finding that the Albanian government had failed to uphold investment protections. The award mandated Albania to compensate Becchetti substantially, leading to the seizure of Albanian assets abroad, including aviation fees managed by Eurocontrol.

An investigative firm hired by the Albanian government has presented evidence, including recorded interviews, which is now being used to challenge the validity of the arbitration ruling.

Investigation Evidence: The report by the investigative firm, based on interviews and collected material, highlights several serious allegations:

  • Fraudulent schemes: Becchetti allegedly orchestrated premeditated fraud schemes to win arbitrations. He reportedly used corrupt practices to influence the arbitration process in his favor.
  • Bribing arbitrators: Becchetti is accused of securing favorable rulings by bribing officials. He allegedly had personal conversations with his appointed arbitrator to ensure a biased decision.
  • Manipulating arbitrator appointments: The report claims that Becchetti influenced the nomination of the president of the arbitration court, with help from his associate Marco Giontella.
  • Compromised tribunal integrity: Becchetti’s legal counsel had a personal friendship with the chairman of the ICSID tribunal, which may have compromised the integrity of the proceedings.
  • False expert testimony: Italian university lecturer Alberto Pasquale, an expert witness in the ICSID case, admitted to lying. Pasquale provided false valuations that favored Becchetti, even though he believed Agon Channel had no real growth potential. “Mr. Pasquale confirmed that his role was to serve Becchetti’s interests, not to provide an independent assessment,” the report states.

The full investigation report, along with video recordings of these interviews, has been submitted to the Brussels court in support of Albania’s appeal. The evidence is also being used in other ongoing legal cases related to Becchetti’s arbitration claims.

Aviation safety concerns: The Republic of Albania, a member of Eurocontrol, depends on over-flight fees for air traffic management and ensuring aviation safety. These fees, collected from airlines flying over Albania, are vital for maintaining the country’s air traffic infrastructure. The Brussels court’s decision to release these funds to Becchetti has raised alarms, as Tirana argues that it jeopardizes aviation safety and essential public resources. The Albanian government has also criticized the court for ignoring the new evidence of Becchetti’s alleged corrupt activities.

The legal proceedings have sparked debate about the Belgian judicial system’s impartiality, particularly given the unusual change of judges midway through the case, which has fueled concerns of potential conflicts of interest.

Ongoing legal battle: Albania continues to contest the €100 million arbitration award through multiple legal avenues. The government has filed an annulment request with the Paris Court of Appeal and sought a revision of the ICSID decision. Additionally, Albania has appealed to the Belgian Supreme Court, arguing that the funds managed by Eurocontrol are crucial for national security and must be protected. The outcome of these legal challenges will have far-reaching consequences, not only for Albania but also for the integrity of international arbitration processes.


Go deeper