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Investigation

Eastern Kosovo Town’s Mountain Resort Becomes Hotspot for Illegal Construction

A months-long investigation by KALLXO.com revealed how Novobërda municipality became a site of mass illegal construction, where hundreds of villas were built without permits. The investigation uncovers possible financial misconduct involving public officials, unlawful municipal decisions, and inaction by key institutions.

In 2020, Labinot Rexha and Bekim Hallaqi began constructing villas in the village of Makresh in Novobërda, in eastern Kosovo. Despite a formal order to halt construction from the municipal inspectorate, led by Xhevat Mehmeti, work continued.

“I issued the order to stop the work, but what they do after that is beyond my control,” Mehmeti told Kallxo Përnime. He also admitted he was uncertain about whether the order was officially delivered to Rexha or if inspectors made follow-up visits.

In an Interview for BIRN and Internews Kosova Kallxo Përnime TV Programme, Rexha claimed the municipal inspectors never attempted to stop his work, even though he admits he did not have the required permits.

“The inspectors never came. Nor did the forestry inspectors—never at all,” Rexha said.

Kosovo’s laws prohibit construction on forest land without an official change of land use. Rexha states he repeatedly applied to the municipality for this change but never received approval.

Documents obtained by Kallxo Përnime confirm that on January 6, 2022, the Ministry of Agriculture, led by minister Faton Peci from the ruling Vetevendosje party, officially rejected Rexha’s request to convert the forest land into construction land. In spite of this, 130 villas have been built at the site.

The investigation, which aired on June 20, 2025 on the Kallxo Përnime TVProgramme, found that hundreds of villas have been built without proper permits on forest and agricultural land. Public officials of Novobërda municipality were allegedly taking bribes in the form of loans  in exchange for unlawful decisions that were used as the basis in court processes.

The investigation revealed suspicious financial dealings amounting to 20,000 euros, linked to the brother of the former municipal mayor, as well as delays and silence from the Ministry of Agriculture, Forestry, and Rural Development regarding a municipal assembly decision.

Despite clear signs of wrongdoing, key officials remain uninvestigated, and ministries have been slow to act on the irregularities the investigation uncovered.

Allegations of financial misconduct

Aerial view of the villas built in the village of Makresh, in Novobërdë. Photo: BIRN

Aerial view of the villas built in the village of Makresh, in Novobërdë. Photo: BIRN

In a recorded conversation from 2025, obtained by Kallxo Përnime, Rexha spoke to the former mayor of Novobërda, Svetislav Ivanovic, about  lending 20,000 euros to his brother, Sreten, who currently holds a senior administrative position in the municipality.

“You told me this is a great investment and encouraged me to continue,” Rexha tells Svetislav Ivanovic in the recording.

During the conversation, Rexha claimed that Sreten had previously told him: “I have a job—give me around 20,000 euros.” According to Rexha, when he asked, “When will you return it?” Sreten replied, “After one or two years. I’ll help you with some work.”

Rexha is also heard claiming that Bekim Hallaqi, his business partner, withdrew this money from a bank and handed it to Sreten Ivanovic. 

Hallaqi denied any such transaction. “I never gave any money to Sreten, maybe Labinot did, but not me,” Hallaqi told Kallxo Përnime.

Meanwhile, Svetislav Ivanovic is heard denying knowledge of the loan, and neither brother has agreed to comment on the allegations.

Failures in oversight and legal actions

Despite ongoing legal proceedings against Rexha and Hallaqi, who were indicted in November 2023, for constructing roughly 130 villas without permits, the local prosecutors have not expanded investigations to include municipal officials allegedly involved.

“The Prosecutor’s Office has not taken steps to investigate others since it received a criminal complaint from the Municipal Inspection, conducted investigations, and finally indicted Labinot Rexha,” the office stated

The construction of villas was also overlooked by authorities.

In 2021, the Central Inspection for Forestry and Huntingconducted a site inspection but failed to stop the construction or prevent illegal deforestation. An internal audit report criticised this inaction, citing violations and potential abuses of power by the inspection director, Besim Zogu.

“It is suspected that the legislation in force was not applied properly when inspectors established that the owners had not followed any legal procedures. All illegal construction that does not meet the criteria concerning forest damage should have been stopped, and measures should have been taken according to the inspectorate’s  legislation.”

Zogu told Kallxo Përnime, in a phone interview, that stopping construction in Makresh was not the responsibility of the central inspectorate, saying that building permits “are under the municipal inspectors’ jurisdiction.”

“There is no illegal cutting [of the forest], it is cutting without due process,” Zogu said.

Controversial municipal assembly decision

Aerial view of the villas built in the village of Kllobukar, in Novobërdë. Photo: BIRN

In another case, 35 villas were built in 2023 in Kllobukar village in Novobërda by Valon Ramushi. He was fined 2,200 euros for illegal construction by the Gjilan Basic Court.

The court cited a municipal council decision that changed the land use from agricultural to construction land, which Ramushi used as a mitigating factor. 

However, Kosovo law requires all such decisions to be reviewed by the Ministry of Local Government Administration, MAPL, and the Ministry of Agriculture.

While the municipality submitted this decision to MAPL, it was delayed and left unexamined by the Ministry of Agriculture until Kallxo Përnime’s inquiry in April 2025 prompted action.

In May 2025, the Ministry declared the municipal decision invalid, confirming it violated the development plan which designated the land as agricultural and not suitable for construction.

“The decision, approved by the Municipal Assembly of Novobërda in October 2023, is in violation of the applicable legislation, as the land in question is designated as agricultural according to the Municipal Development Plan and construction is not permitted on it. Consequently, changing its designation from agricultural to construction land is not allowed.”

Ramushi claimed ignorance of the decision’s illegality and stated that he followed the legal process and all his permits were proper.

Speaking to Kallxo Përnime, Ramushi declared, “Up to this point, I know that everything is in order regarding the change of land use, the procedures for construction conditions, and the building permits. We know that everything is completely in line [with the regulations].”

English version prepared by Ardita Zeqiri

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