Albania’s Special Court Against Corruption and Organised Crime (SPAK) has ordered the arrest of Erion Veliaj, the influential mayor of Tirana, on suspicion of corruption and money laundering. 

Veliaj, a senior figure in the ruling Socialist Party and mayor since 2015, is accused of orchestrating a complex scheme to misappropriate public funds for personal gain.

His wife, Ajola Xoxa, was also placed under house arrest on charges of passive corruption, money laundering and false declaration of assets. The allegations involve the use of public funds and construction permits, which, according to SPAK, were funneled through a network of non-profit organisations and businesses controlled by Xoxa and her close associates.

According to SPAK, Veliaj is suspected of approving the illegal distribution of public funds and granting construction permits to companies closely connected to him. These funds were allegedly channeled through a web of organisations and businesses controlled by his wife and other associates, effectively disguising the proceeds of illegal activities.

“From the concrete data collected up to this stage of the preliminary investigation , it results in summary that, by the citizens under investigation, specifically EV (acting mayor of Tirana) as well as the latter's wife, AX, a mechanism was devised, created and put into operation that aimed and made possible, in practice, the receipt of irregular benefits, which originate from public funds administered by the Municipality of Tirana, through its head, with the aim of personal enrichment of the latter and his family, through camouflaged and illegal actions,” SPAK said in a statement. 

It claimed that the scheme aimed to launder the proceeds of corruption through complex financial transactions.

Five local businessmen are also being investigated for their involvement in the scheme. They have been placed under an “obligation to report to the police” while the investigation continues. SPAK is also probing a member of parliament for obstruction of justice related to the case.

Veliaj’s arrest sent shockwaves through Albania’s political establishment, given his prominence within the Socialist Party and his reputation as a rising star in Albanian politics. The arrest also comes at a time when public trust in government institutions is already fragile due to long-standing concerns about corruption and abuse of power.

Veliaj posted a statement on Instagram declaring his innocence and blaming the prosecutor responsible for his arrest. " I want you to be sure that the story that is telling me about me as a corrupt criminal, who has hidden wealth and laundered money together with my friend, is fabricated by a perverse individual, the prosecutor of our case," he wrote. 

The mayor has previously been a controversial figure, particularly in his relations with the media. In 2023, he faced widespread criticism after calling BIRN journalist Ola Xama a “contract killer” in response to her investigation into municipal affairs. His comments were widely condemned as an attack on press freedom.

The case is part of a broader crackdown on corruption led by SPAK, which has been gaining public attention for targeting high-profile figures. Albania has long struggled with systemic corruption, which has hampered its European integration ambitions and weakened public institutions.

In the 2024 Corruption Perceptions Index (CPI) by Transparency International, Albania rose 18 places to 80th out of 180 countries, marking its best result since the index began in 2012.