Millions of Pension Trust Loss

Since February 28th, 2023 all members of the Kosovo Pension Savings Fund Steering Board have completed the mandate. In the absence of the Board, savings collected by the Trust during these months cannot be invested in financial markets.

The competition for the election of new members has been closed on December 23rd, 2022, but since then the responsible Commission has not yet examined the candidates that have applied. The commission consists of the finance minister, the governor of the Kosovo Central Bank and the general audience.

BQC spokesman Kufit Ahmeti has told Kosovo Radio e-mail that this institution has requested answers from the Ministry of Finance and the General Auditor, regarding the process for members of the Kosovo Pension Savings Fund's Steering Board, but that according to him, they have received no answers so far.

“Based on Article 4, paragraph 4.6 of Law No. 04/ L-101 for Kosovo Pension Funds Changed and Complete with Article 2, paragraph 1 of Law No. 05 L-16, a selection commission, proposes to the Assembly for Free Countries in Membership or for the appointment of members of the Kosovo Pension Savings Fund Steering Board. According to this article, this commission will be composed of the BQC's governor, the general audience and the minister of finance. I inform you that based on legal requirements, during 2022, March 14, 2022 and October 24, 2022, as well as on January 5, 2023, Governor Fehmi Mehmeti has applied to the Minister of Finance and General Auditor regarding the process for members of the Kosovo Pension Savings Fund Steering Board. However, so far, Governor Mehmeti has received no response from the relevant institutions concerning the candidate's selection for members of the Kosovo Pension Savings Fund Steering Board,” is said in the BQC response.

Earlier by the Kosovo Pension Trust, they had declared to the media that all procedures on the part of the Trust have been carried out, such as opening the long-term competition and sending candidates to the responsible Commission (transmeton Radio Kosova).

As a result of the fluctuation of global markets, Trust from January to December 2022 has lost over 118m euros.

Taking into account the banking crisis involving the US and Europe these days, economist Emmanuel Bajra tells Radio Kosovo that there must be increased caution on this issue.

I don't think it's going to be dangerous, but anyway, we need to be careful, because my primary cutout is in outside capital, so if a panic measure is being opened all over the European banks, then these banks that have cross headquarters across Europe, they can't draw their investment capital into commercial banks, which means they can affect our deposits, and of course, BQC is created to guarantee these deposits of our citizens, and I don't see it being this problem, but so we said in 2008, and so we said in the last year when we thought about the financial problems, and of today we're all of us, but we're in a global crisis.

In the absence of the board, opposition parties have declared that Kosovo contributors' money is at risk, while from the position they have said the Law on Voter Savings envisions that in cases where the new board is not resolved, the existing one is still mandated for 90 days.

During yesterday's day, Jeton Demi, spokesman for this institution, has said they cannot say that FKPK's tools as a whole are endangered, but the institution is still in a difficult position without the main organ.

And, according to former Finance Minister Haki Shatri, the government is not willing to elect a Trust board.

Shatri says Kurt will elect members of the Vetevendosje Movement board.

Our subx0 institutions are not working for the Trust even though they can do it, they can form the Trust Board, but they're not doing this because Trust structures can't do anything without board. It seems to me that the prime minister was busy and had no time to deal with boards. Kurti will find his party members to interview”, Shatri stressed.

Former Minister Shatri says when the Pension Trust is without God, the citizens' money is at stake.

The citizens' money is being endangered and the day is being lost because Trust has no board. All reports indicate that there was a loss. When Trust is without a god and all the money will be compromised”, Shatri said.

Even from the Democratic Party of Kosovo, they have hoped disappointment over the failure to appoint a Trust board.

Commission for Economy Chairman Ferat Shala simultaneously deputy The PDK has spoken on this issue.

Shala says this whole pension Trust situation is disturbing.

He has brought charges against Kurti Government.

The Trust situation is very disturbing for the fact that over 2.5m euros are without management and accountability. There's an apparent decline in resources from the Trust, and none of the state institutions intend to take any action to react. All these problems with the Pension Trust result from the bad policies of this government. This situation will long follow us with huge loss of pension fund”, Shala said.

MP The PDK said urgent should be resolved the board of this institution.

“The emergency government must choose the board of the Pension Trust, which did a quick analysis and manage the funds there as well. We know that this board will not be imposed quickly, since there is no reaction from the Government to prevent this loss of citizens' money”, Shala says.

The mandate of members of the Pension Trust Board ended in 30.11.2022, but was extended for three months.

The contest was announced three months ago in 02,12,2022, but no action has been taken so far.

About 2.5 billion euros have been invested in international markets by Kosovars' pensions under the law, only the Board decides on investments or attracting invested means.