The ICSID ruling states that a bribe was demanded for Grandi
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Koha | 9 March 2025
The ICSID ruling states that a bribe was demanded for Grandi
Kosovo will pay over 6.7 million euros to MabCo Constructions, owned by former President Behgjet Pacolli, following a decision by the Arbitration Tribunal in Washington. The ruling, obtained by KOHA, states that Kosovo acted arbitrarily and demanded bribes in the privatization process of the Grand Hotel. The Tribunal document also mentions an audio recording, which is said to prove the demands for bribes.
The International Center for Settlement of Investment Disputes (ICSID) has found that Kosovo acted arbitrarily towards the company MabCo Construction, failed to guarantee fair and equitable treatment, and demanded bribes in the privatization process of the Grand Hotel.
The Washington-based tribunal has ruled in favor of the MabCo company, owned by former President Behgjet Pacolli, who sued the state using the fact that his company was registered in Switzerland, but that he himself holds a Swiss passport.
The arbitration tribunal’s verdict, a document obtained by KOHA, states that officials from the Kosovo Trust Agency (KTA) had asked Pacolli and businessman Remzi Ejupi to be involved in the purchase of the Grand Hotel, as the official winner of the tender, UnioCommerce, owned by Zelqif Berisha, did not have the 8 million euros required for privatization.
According to the arbitration, Pacolli had given 4 million, and Ejupi 1 million euros. But this happened unofficially.
In 2007, the businessmen had signed a Memorandum of Understanding for the division of shares: 40% for MabCo, 40% for UnioCommerce, and 10% for Ejupi’s company.
However, the agreement was not registered in the Business or Real Estate Registry.
The judgment notes that the Privatization Agency of Kosovo (PAK), the successor to the KTA, was aware of MabCo’s involvement in the privatization, but had not officially recognized its shares.
"While the defendant (vj Kosovo) maintains that the PAK has ’consistently’ and ’systematically’ rejected the notion that the plaintiff was entitled to have the shares recognized and registered, in fact the PAK has not expressly denied ownership or right to ownership of the plaintiff’s shares until after the decision to withdraw the shares was made in December 2011," the judgment states.
In December 2011, the AKP decided to withdraw the shares, but the decision was not immediately executed.
In the period February-April 2012, persons acting on behalf of the AKP had promised Pacolli and Ejupi official recognition of the shares if they paid 3.5 to 4 million euros in bribes.
To support this claim, Ejupi also provided the Tribunal with an audio recording.
"Based on the totality of the witness testimony, supplemented by the audio recording, the Tribunal concludes that it is significantly more likely than not that the actions complained of by the claimants actually occurred and that they constitute a solicitation for bribery," the judgment states.
According to the verdict, the bribery demands included Astrit Haraqija, former Minister of Finance; Ukë Rugova, son of the former president and member of the Kosovo Assembly; Gazmend Abrashi, businessman and former bidder for the Grand Hotel; and Adelina Reçica, wife of Dino Asanaj, former chairman of the AKP Board.
On May 15, 2017, the Center accepted the request for Arbitration from the company MabCo against Kosovo. The process concluded on January 3 of this year.
The Kosovo government on Friday decided to allocate 6.7 million euros to the MabCo company, while it remains to be seen whether local institutions will take steps regarding the bribery allegations raised in the ICSID judgment.
