Democrats demand inquiry over €110 million arbitration payment to Becchetti

The Democratic Party (DP) has requested an urgent interpellation with Prime Minister Edi Rama over the alleged €110 million payment to Italian businessman Francesco Becchetti. The opposition claims the payment stems from government negligence and corruption. Meanwhile, the government insists that no payment has been executed and describes the case as an ongoing legal matter.

Why is this important: Francesco Becchetti, convicted in Albania in 2022 for tax evasion and fraud, has accused the government of unlawfully seizing his investments, including the Agon Channel media outlet, which was critical of Prime Minister Rama’s administration. After losing his case in Albanian courts, Becchetti turned to international arbitration, where the International Centre for Settlement of Investment Disputes (ICSID) ruled in his favor in 2019, awarding him €110 million in damages.

However, recent investigations funded by the Albanian government have cast doubt on the legitimacy of the arbitration ruling, alleging Becchetti manipulated the process through corrupt practices. This development raises broader questions about the integrity of international arbitration and the financial and reputational costs for Albania.

Context: Becchetti is a controversial entrepreneur with investments in Albania’s energy and media sectors. His legal battles began after the Albanian government accused him of money laundering and tax evasion. In response, Becchetti claimed political persecution and sought international arbitration, arguing that the government violated its obligations to protect foreign investors.

In 2019, ICSID ruled in his favor, finding Albania liable for failing to uphold investment protections. The ruling resulted in the seizure of Albanian assets abroad, including aviation fees managed by Eurocontrol.

A Belgian court recently ruled in favor of Becchetti, authorizing Eurocontrol to release funds owed to Albania to cover the arbitration award. The Albanian government has strongly contested this decision, warning that it jeopardizes critical aviation safety resources.

New investigation and evidence: An investigative firm hired by the Albanian government has presented evidence alleging Becchetti manipulated the arbitration process:

Fraudulent schemes: Becchetti reportedly orchestrated fraud to influence arbitration outcomes.

Bribing arbitrators: He allegedly secured favorable rulings through bribes.

Manipulating appointments: Becchetti is accused of influencing the nomination of the arbitration tribunal president.

Compromised integrity: His legal counsel reportedly had close ties with ICSID tribunal members.

False expert testimony: A key witness admitted to providing fabricated valuations favoring Becchetti.

This evidence has been submitted to Belgian courts, where Albania is appealing the arbitration ruling. The findings have also sparked concerns about the impartiality of the Belgian judicial system, particularly given an unusual mid-case judge replacement.

Government’s response: The Albanian government has filed multiple legal appeals, including annulment requests with the Paris Court of Appeal and the Belgian Supreme Court. It argues that the arbitration decision was tainted by corruption and that funds managed by Eurocontrol are critical for national aviation safety and should be protected.

Deputy Prime Minister Belinda Balluku emphasized the government’s commitment to defending Albania’s financial and public interests: “This is a matter of justice and national security. Albania will pursue every legal avenue to contest this unjust ruling and ensure that critical resources for aviation safety remain protected.”

Criticism from the Democratic Party: The DP has accused the government of mismanaging the case and failing to defend Albania’s interests effectively. DP leaders argue that the arbitration ruling reflects broader issues of negligence and corruption within the administration, which they claim is now costing taxpayers hundreds of millions of euros.

What’s next: The DP’s demand for an interpellation is expected to spark intense parliamentary debates over the government’s handling of the Becchetti case. Meanwhile, Albania’s legal challenges in Paris and Brussels will determine the outcome of the €110 million award.