EU asks the Balkans to fight energy sector corruption

Investigations into attempted bribery by Hungary’s oil and gas company Mol Group in Croatia led to the trial and imprisonment of former Croatia Prime Minister Ivo Sanader. [AFP]

EU asks the Balkans to fight energy sector corruption

A new report recommends reform of the justice system to tackle corruption in energy deals.

The energy sector is one of the key sectors fostering economic development and stability, but Balkan countries must tackle corruption to save money and take of advantage of development opportunities, EU officials said.

Experts said eliminating corruption in the energy sector must be urgently addressed through reforms and improvements in the justice system.

The EU needs to assist the Balkan countries to correct the negative impact of corruption because the region urgently needs investments in the energy sector, especially since wages are below the EU average, said Janez Kopac, director of the Energy Community Secretariat.

"We would like to see EU directives on public procurement and stronger rules on the notification of state aid to become part of the legally-binding obligations under the Energy Community Treaty as soon as possible," Kopac told SETimes.

Kopac also said adopting EU directives will provide much-needed transparency and allow the secretariat to open dispute-settlement procedures if the rules are not followed.

An energy sector which operates transparently, one in which the players obey the rules, increases efficiency to the maximum, improves sustainability and benefits the national economy, said Dardan Malaj, a spokesperson for the Albania energy ministry.

Malaj said Albania's energy sector had been subject to corruption and illegal interventions, including providing licenses for hydro-power plants without contenders conducting any feasibility or other studies.

"The view of this unplanned development is the current situation, where...

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