Thirteen Arrested in Albania Oil-Contraband Scheme

The arrests were ordered by Tirana prosecutors following a six-month investigation into fake exports of diesel residue, called virgin naphtha, and were carried out on Friday and Saturday.

“From the ongoing probe we can prove that large quantities of an oil by-product known as virgin naphtha were traded in the Albanian market from 2007-2009 in contravention of the law and causing damage to consumers,” said the general prosecutor’s office in a statement.   

The thirteen suspects that were arrested have been charged with aggravated fraud, abuse of power, falsifying documents and money laundering.

The investigation follows public accusations about the trade in virgin naphta made by former minister of economy turned whistleblower, Dritan Prifti, who is himself the target of a corruption probe.   

Prifti is charged of active corruption in a separate investigation, after allegedly filming himself sharing a €70,000 bribe with his former deputy. He has denied any wrongdoing.

The oil distillate, virgin, which is produced by Albania’s refiner ARMO, has poor octane quality and is not allowed for sale inside in the country.

However, according to prosecutors, two oil trading companies armed with false documents and the complicity of tax and customs officials faked the export of the virgin naphtha, while selling it at local pump stations as car fuel.

Through the scheme the two companies, Euroil Sh.a and Fisheku Sh.a, pocketed an estimated €40 million in un-paid excise duties and value-added tax by selling the extremely poor quality fuel, prosecutors allege.

If the prosecutor’s charges hold in a court of law, the fraud would be the largest financial crime ever discovered in Albania.