Albania’s AI minister ‘Diella’ faces scrutiny after the agency that created it, AKSHI, became subject to a major corruption investigation involving rigged tenders and criminal networks. Prosecutors have charged AKSHI’s director and deputy director with violating procurement rules and cooperating with a criminal group, with assets worth over €40 million seized.
Albania’s AI anti-corruption experiment faces scrutiny amid agency corruption investigation
Albania’s ambitious effort to harness artificial intelligence in the fight against corruption is facing growing skepticism after the government agency responsible for developing the country’s groundbreaking AI-powered virtual minister became the subject of a major corruption investigation. The controversy has cast a shadow over one of Albania’s most high-profile digital governance initiatives, raising broader questions about the role of technology in addressing systemic graft.
At the centre of the controversy is Albania’s National Agency for the Information Society (AKSHI), the institution responsible for developing Diella and overseeing much of the country’s digital transformation strategy. According to anti-corruption prosecutors, senior officials within the agency are suspected of manipulating public procurement procedures to benefit a network of favoured companies.
Charges against AKSHI leadership
The agency’s director and deputy director have been charged with violating public procurement rules and cooperating with a criminal organisation, according to court documents cited by investigators. Prosecutors allege that kickbacks were delivered through elaborate methods, including cash concealed inside wine boxes.
As reported by OCCRP, the special prosecutors accuse the AKSHI officials of receiving kickbacks that included wine boxes filled with cash. The agency’s director and deputy director were charged in the same document with violating public tender rules and cooperating with a criminal organization.
Business executives and police official implicated
The investigation extends beyond government officials. Several business executives connected to information technology companies have also been charged in connection with the alleged scheme. One suspect was reportedly arrested in France, where authorities discovered significant assets, including ownership of a historic castle.
Meanwhile, a senior police official has reportedly been suspended while investigators examine allegations that he either protected or cooperated with members of the criminal network. The deputy director of Tirana’s police force has been suspended from duty while under investigation for allegedly covering up or collaborating with the group’s illicit activities.
Asset seizures worth €40 million
Authorities have ordered the seizure of assets—including bank accounts, vehicles, real estate, and cash—valued at more than €40 million as part of the ongoing investigation. In total, authorities ordered a seizure of assets worth more than 40 million euros connected to the scheme.
Kidnapping incident linked to probe
Prosecutors suspect a kidnapping was orchestrated by the criminal group that had allegedly been running AKSHI’s kickback scheme. The incident was aimed at convincing a tech company owner to withdraw his company’s appeals on more than a dozen tenders put out by the agency.
According to OCCRP, prosecutors suspect the kidnapping was orchestrated by the criminal group that had allegedly been running ASKHI’s kickback scheme, and was aimed at convincing Meçe to withdraw his tech company’s appeals on more than a dozen tenders put out by the agency.
Diella’s appointment and mandate
Albania has appointed Diella, an AI system, to work on overseeing government contracts and increasing administrative transparency, sparking a debate about the role of AI in politics. Prime Minister Edi Rama announced the move stating that the AI minister would ensure every single public tender is 100% corruption-free, replacing human decision-making with algorithms designed to eliminate bias, bribes and political influence.
Diella, which means “Sun” in Albanian, was a chatbot that had been promoted to ministerial status. Her remit, Prime Minister Edi Rama announced, was to ensure that
“public tenders will be 100 percent free of corruption.”
Opposition criticism
The Chairman of the Democratic Party, Sali Berisha, held a press conference where he strongly denounced the latest scandals with corrupt tenders at AKSHI. During his speech, Berisha targeted Armand Frangu, accusing him of using the field of Artificial Intelligence as a facade to carry out a colossal theft through public funds.
“Armand Frangu, Linda’s brother-in-law from Surrel, comes out and says:
‘I will make you happy with Artificial Intelligence’. AI is non-existent in Albania. I will improve it, he says, according to them it exists. And how much does he get? 75 million euros! With this act, 75 million euros were stolen without any product,”
Berisha said during the press conference.
SPAK response
When reached for comment, SPAK said the investigation was ongoing and that the case had not yet been sent to trial. None of the individuals have been indicted, as the investigation is ongoing.
Broader context of corruption investigations
SPAK investigations have uncovered in several cases tender manipulation schemes, where the winners were predetermined before the procedures were carried out. Contracts for the construction of roads, incinerators or other public investments have become the subject of investigation for suspicions of favouring economic operators and violation of competition rules.
New charges have also been filed against Belinda Balluku, a former Deputy Prime Minister and Minister, as anti-corruption investigations continue to widen. Former Deputy Prime Minister Belinda Balluku appeared at the Special Prosecutor’s Office, where she was informed of charges related to several procurement procedures under investigation.
Expert concerns validated
Initial warnings from experts have been quickly validated with the outbreak of a major scandal at the top of AKSHI. Investigators from Albania’s Anti-Corruption Prosecution (SPAK) discovered that the entire leadership of the agency—including the general director and deputy—had systematically directed public contracts and IT tenders to an organized crime network.
In exchange for the preferential award of these contracts worth tens of millions of euros, officials received disguised bribes, handed directly in wine boxes filled with cash. The AKSHI leadership (general director and deputy) is suspected of favouring a criminal group through the preferential award of public IT contracts.
