Kosovo’s construction sector is becoming one of the main drivers of urban development, yet it is also a hotspot for concerns about the origin of capital financing large projects. According to data, the Municipality of Pristina has issued 11 construction permits to companies from Albania, while the city has witnessed a surge of multi-story towers, including buildings reaching up to 41 floors in the city center.
Sources from the construction sector and a Kosovo Police investigator describe a system where investments are often difficult to trace. After permits are issued, financing frequently passes through compensation schemes, subcontracting, and partial payments, masking the flow of funds. The State Prosecutor’s Office confirms that money laundering cases linked to construction are under investigation, with the sector particularly exposed to such risks.
Cross-Border Investments and Shadow Capital
Liridoni*, a co-owner of a Pristina construction company, described the market as increasingly influenced by hidden capital rather than traditional investment logic. “Some have managed to bring in black money, and now their constructions are competing with ours,” he said, requesting anonymity. He added, “Much money is also coming from Albania, especially from drugs, so prices will not fall.”
Documents obtained by shteg.org show that construction financing often relies on fragmented schemes that obscure the origins of capital once projects are underway. Many of these investors remain invisible on paper, including companies such as ABS Kosova SH.P.K., owned by Gerond Meçe, involved in AKSHI investigations, and Arben Isufaj (Ben Qimja), convicted in Italy for cocaine trafficking and other drug offenses between 2004–2005.
PCC and ABS representatives denied being secondary investors, though evidence indicates Meçe’s company has won construction tenders in Kosovo, including energy and telecom services.
Money Laundering Mechanisms
Investigations by SPAK and Kosovo authorities in 2024 led to the seizure of €1.5 million. Prosecutor Doloreza Musabelliu explained that funds from drug trafficking or corruption are often invested in construction, businesses, and foreign bank accounts, frequently through family members or trusted associates to obscure the origin.
“One scheme involves companies issuing fictitious invoices for consultancy or phone services,” Musabelliu said. “These funds are later invested in real estate, hiding the true owners of the companies.”
Financial experts note that the widespread use of cash in Albania and Kosovo further complicates tracing. Professor Albulena Kastrati explained that illicit funds are gradually integrated into the formal economy through loans, businesses, and seemingly legitimate investments, often bypassing real verification.
Major Players in the Market
Albanian companies have become significant actors in Kosovo’s urban landscape, securing multi-million-euro public contracts and private projects. Notable companies include:
- ENK Invest Group / PCC – Owner: Isuf Haxhiu, built two 41-story towers
- Paluca Group – Owner: Besnik Paluca, collaborates with Primo Group (Redi Panajoti)
- Baflin Group – Owner: Saimir Mane
- Victoria Invest International – Owner: Fatmir Kuqi
- Trema Engineering 2 Sh.p.k. – Owner: Eduard Gjana
- Gjoka Konstruksion – Representative: Rrok Gjoka
Additional Albanian companies operating in Kosovo include Salillari, Proco Holding, GR Albania, Gjini Construction, Abkons Sh.p.k., ABC Sh.P.K., and Victoria Invest International, completing public and private projects in Pristina, Gjakova, and Ferizaj.
Architect Astrit Nixha, involved in several major projects, warns that fraudulent “strategic investors” have created a damaging climate where corruption is pervasive and Kosovo attracts silent Albanian investors.
Experts Highlight Systemic Risks
Experts, including Dardan Koçani from Global Initiative, emphasize that weak legal oversight, corruption, informal practices, and criminal networks create fertile ground for money laundering through construction. Cash payments, front companies, and complex financial schemes facilitate hiding the true source of funds.
Authorities confirm that many suspicious funds are identified only during broader criminal investigations, rather than routine inspections. Kosovo’s construction sector thus remains vulnerable, with sporadic and reactive oversight.
Faton Hoxha, head of the Builders’ Association in Pristina, highlighted the exodus of experienced builders due to these risks: “Officially, there is no money laundering because no one has been caught. But here, even the builders are not building anymore.”