How 2m euros stolen from Kosovo budget

Kosovo was troubled by news that a Kosovo Treasury worker allegedly through four different transactions has made the transfer of over 2m euros of budgets to the account of a private company, the LDA Group Shpk.

The indictment stressed that on October 9, 2020, Kadri Shala, as a responsible person of the company “The LDA GROUP KPS” has enabled Labinot Gruda, official at the Ministry of Finance, that money from the State Treasury worth 2 million and 77 thousand euros and 90 euros to be transferred to the same company illegally.

The Pristina court in 07.12.2022 had convicted Labinot Gruda and Kadri Shala, charged with stealing 2m euros from the State Treasury. The court sentenced Labinot Gruda to a unique sentence, prison sentence in the course of 11 years, and fine sentence of 8,500 euros. He also pronounced the additional sentence against which he forbids public office. While defendant Kadri Shala, the court sentenced him to a unique sentence, prison sentence in 10 years, and fine sentence worth 33 thousand euros.

The court in the verdict announced that all property illegally acquired has been confiscated. We remember that Labinot Gruda was guilty of the work that the prosecution put to his burden, but the court refused to admit guilt.

While, Kadri Shala had negotiated with the Prosecution on plea agreement, they had not reached one.

The Special Prosecutor of the Republic of Kosovo (PSRK) had filed charges at the Constitutional Court in Pristina, the Special Department, against defendants Labionot Gruda and Kadri Shala.

According to the prosecution, defendant Labinot Gruda is charged with criminal acts “Use of official position or authority, “Identification and access equipment, as well as “The release of the money in co-ordination with defendant Kadri Shala.

Meanwhile, defendants with initials, Kadri Shala, have filed charges due to criminal acts “The advance release of KPRK's Article 308 in connection with Article 56 of the Law on Prevention of Money and Terrorism Financing, in co-operation with defendant Labinot Gruda, and for criminal work aid from Article 33 paragraphs 2 concerning KPRK paragraph 1, in connection with criminal work “The use of official position or authority by Article 414 of KPRK.

The Special Prosecutor reports that as a result of the incriminating actions of the defendants L.G. and K. The US, the Republic of Kosovo budget has been caused damage worth two million seventy-seven thousand nine hundred ninety-five euros and ninety-nine cents (2,077,995.90) euros.

In this regard, the prosecution has demanded the seizure of four (4) cars that are the result of this criminal activity, the amount of money that has been frozen at the order of the court.

And on the part of the defendants, according to the prosecution, will be compensation for the loss or damage caused by the Kosovo Republic of Kosovo budget until the value of damage caused as a result of criminal acts, or on the contrary, the court related to it seizes any property of the defendants until the full compensation of damage done to the budget of the Republic of Kosovo.

Kosovo Government Finance Minister Hykmete Bajrami, during a Thursday report before the Parliamentary Commission for Public Finance Supervision, has indicated that the transfer of over two million euros from Kosovo's Treasury to a private company account has been carried out through cyber crime.

After the three minutes I was informed, we immediately denounced the case to the police. This is an economic crime carried out through deep cybercrime, where unauthorized access has been made, beyond legal authorisations, it has become misuse of official duty, and the password (words)” has been broken, Bajrami said.

How were the money transferred?

The structure of the transfer of Kosovo's budget funds is distributed to several officials, with numerous links of control, while there are officials who have more specific competencies. Responsibilities and management of financial means, on the official website of the Ministry of Finance, under which the Kosovo Treasury works, are published in the Kosovo Financial Management Proceeding Process of Users at the Kosovo Financial Management Information System, dubbed in SIMFK February.

In this system, in addition to Treasury employees, access rights have employees of budget organisations, assigned by relevant organisations, but only after passing the training and Certificate process for the respective module.

Under budgetary organisations come various ministries and state agencies. System users are constantly monitored.

The user of this system, at the moment it accepts the Treasury approved request for access to SIMFK, makes the census, assigns user ID, password, functional class and security group.

The identification number and password are provided only to user. The functional classes, which are 33, determine access to certain functions for users, according to their responsibilities. Of these classes, access to all system functions and modules can only include the head of the Internal Management and Control Division and functional analysts, as well as an alternative official with the authorization of deputy operating director.

In other classes, they have the right to access only budgetary organisations officials, property registration officials, competent officials for shopping requirements, etc.

But all these officials have different codes and passwords to carry out the transfers. And in Thesar's pay division, only Treasury workers have rights. Any recorded transfers at the end of the day must be verified, where the person responsible for carrying out transfers must constantly be monitored, controlled by other officials.

Based on procedures, any recorded transfers at the end of the day must be verified, mainly large amounts of tools. Budget organisations are also needed to be contacted and ask if they have realised the specific cost value.

The monitoring of vehicle transfers completes another department, completing the payment file of all budgetary organisations.

SIMFK User Monitor

In the case when the Monitoring Unit finds that the user makes systematic mistakes during recording transactions in SIPFK, the Treasury takes measures starting with remarks, temporary suspension of access, to obtain the certificate for SIMF issued by the Treasury. In these cases, for retake of access, the process will be initiated from the beginning, as well as for new users, where if the budgetary organisation still considers that financial official can carry out that role. /Kosovo priss