A new report has raised questions about the allocation of public funds within Albania's defense sector, alleging that state-owned and public-private defense companies have received more than 1.64 billion lekë (approximately €17 million) from the state budget, local media say.
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According to the report, KAYO, led by Ardi Veliu, serves as a key link in channeling state assets and funding into joint ventures with private partners. One example cited is Guna Tactical, established in 2025 with businessman Emiljano Dusha, which reportedly received more than 722 million lekë for military uniforms and logistics.
The report also names businessman Ron Yeffet, alleging that he benefits from public land in Shkozë as well as defense partnerships through Timak Defence and Advanced Arms Technology. It further states that the Albanian government has invested millions of euros in these ventures while private partners retain operational control and a significant share of the profits.
The agreements involving international defense companies Elbit Systems and Fincantieri were reportedly signed under the oversight of Prime Minister Edi Rama, Deputy Prime Minister Belinda Balluku, and Defense Minister Pirro Vengu as part of the government's "Made in Albania 2030" initiative.
With Albania's Ministry of Defense budget reaching €728 million, the report questions how much of the funding is ultimately directed toward strengthening national security and how much benefits private business interests.