Police and prosecutors raided Kosovo’s Ministry of Agriculture and three other locations on Tuesday following a BIRN investigation on the construction of an animal by-product processing facility.
At the request of the Special Prosecutor’s Office and under a warrant issued by the competent court, Police conducted raids at the Ministry of Agriculture on Tuesday related to a Kallxo.com investigation about a questionable contract awarded by the Ministry for the construction of an animal by-product processing facility.
In a media statement, Prosecutor Admir Shala declared that the investigation is still in the information gathering stage.
“The Special Prosecutor’s Office has initiated an investigation regarding the leasing of the animal by-products processing factory. Raids are being conducted under a judge’s order and with the prosecutor’s authorisation, in cooperation with the Kosovo Police, to gather necessary information and clarify the case. The investigation is ongoing,” Shala said.
Prishtina Insight learned that acting Minister of Agriculture, Faton Peci, was questioned on Tuesday afternoon by police investigators as a suspect in the case.
A Kallxo.com investigation, aired on May 16, 2025, by Kallxo Përnime TV Programme, uncovered a web of irregularities linking government officials in Kosovo to questionable contracts and allegations of public funds misuse within the Ministry of Agriculture, Forestry, and Rural Development.
The investigation focused primarily on breaking public procurement regulations and on the ownership structure of the company awarded a contract to operationalise a factory for processing animal by-products in Drenas/Glogovac.
The contract for the Drenas animal by-product plant is marked by irregularities, undisclosed subsidies, a lack of procurement transparency, and connections to political figures and past corruption cases.
On January 10, 2025, the Minister of Agriculture, Forestry, and Rural Development, Faton Peci, signed a 20-year contract granting the operation of a facility for processing animal by-products in Drenas to the newly established company “LIP KS & IT” Sh.P.K.
The agreement came after a public call for interested parties first issued by the Food and Veterinary Agency, AUV, on July 19, 2024, and again on September 18, 2024..
However, an investigation by “Kallxo Përnime” revealed numerous irregularities in how the contract was awarded.
Company ownership structure
Minister of Agriculture Faton Peci in an interview for Kallxo.com on May 16, 2025. Photo: BIRN
Just five days after the second public call by AUV, on September 23, 2024, “LIP KS & IT” Sh.P.K. was registered with Kosovo’s Business Registration Agency, ARBK.
Initially, the company had three shareholders: Naser Maloku as managing director, “MR & MNE” D.O.O. based in Podgorica, Montenegro, and “LIP ITALIA 2000” S.P.S. based in Rosta, Italy.
According to information obtained by Kallxo.com, “MR & MNE” D.O.O. is owned by another company, “MR & Co doo,” based in Belgrade, Serbia, which is in turn owned by Serbian citizen Muamer Ragipovic.
Ragipovic withdrew from the business on February 20, 2025, just over a month after the contract was signed.
The investigation by Kallxo Përnime revealed that just days after winning the contract for processing animal by-products, the company owned by Ragipovic decided to sell all of its shares for only 3,000 euros.
The file discloses that the company, based in Podgorica and Belgrade, sold 20% of its shares to the company “Arches Bau,” which has shareholders from Kosovo and North Macedonia, and sold another 10% of its shares to Naser Maloku.
Naser Maloku, shareholder of “LIP KS & IT,” is the son of Tahir Maloku, owner of the “Fitorja” company.
Tahir Maloku has been accused of paying a 192,000 euro bribe to Branislav Nikolic of the Belgrade-backed Kosovo Serb political party, Serbian List (Srpska Lista), in the Brezovica’ case.
Minister Peci, when interviewed by “Kallxo Përnime,” denied any knowledge of the company ownership structure.
“I don’t know the names of individuals. I know it was a consortium. The main company is Italian. I signed the contract as part of complying with a government decision.”
The investigation uncovered that Florin Bislimi, brother of Deputy Prime Minister Besnik Bislimi, previously worked for a company owned by “Fitorja,” which itself is owned by Tahir Maloku—the father of Naser Maloku—a shareholder in “LIP KS & IT.”
Florin Bislimi has worked at the insurance company “Kosova e Re” since 2008.
Both Florin and Besnik Bislimi have denied any involvement with the contract or the company.
Besnik Bislimi’s brother denied having any knowledge of the Ministry’s contract, which was awarded to the company “LIP KS & IT.”
“What contract? I don’t understand. No, I’m not aware of it. Naseri ruined our business, closed the company, and liquidated it. I have been working at ‘Kosova e Re’ since 2008. This has nothing to do with me,” Florin Bislimi said, over the phone, to Kallxo Përnime.
Minister Peci acknowledged that he has twice been invited to the office of Deputy PM Bislimi to discuss the plant’s operationalisation.
Bislimi’s office confirmed the meetings occurred but said they were related to his obligations for EU-funded projects.
“The Office of the Deputy Prime Minister, as well as the First Deputy Prime Minister himself, have neither the duty nor the obligation to request information, nor has there been any interest in obtaining such information regarding the number of applicants, the ownership of the applicants, the method of selecting the winners, or the modalities of implementation. They do not know the winning owner, nor are they interested in who the winner is. There has been no involvement beyond what is required in their role as leaders of Kosovo’s European integration process and monitors of the relevant activities,” reads a written response from the office of Deputy Prime Minister Besnik Bislimi.
In a written response, Peci requested that a legal basis be provided to support claims of any alleged violations.
“Let them find the legal basis for eliminating competition in buying and selling shares, based on the nationality of the shareholder… Elimination of someone on the basis of ethnic affiliation or nationality constitutes a racist approach, a legal violation, and a criminal offense.”
The issue being investigated is not the nationality of Ragipovic but the implications of him having sold his shares in the company after winning a 20 year contract and why other procurement rules were ignored in order for this particular consortium to “win” the tender.
Legal framework and business plan
BIRN was granted access to the full contract on May 16, 2025, after having filed a FoI request, and noticed that it deviated from Kosovo Public Procurement Law.
First, despite being newly established and having no financial history, “LIP KS & IT” was considered to meet key requirements of the tender: annual turnover of 13–15 million euros and 12–15 years of industry experience. These qualifications were backed by documents from “LIP ITALIA 2000,” which holds a 40% share in the Kosovo-based firm.
Under Kosovo legislation, a limited liability company, Sh.P.K., is a separate legal entity from its shareholders. Therefore, shareholder qualifications do not automatically transfer to the company itself.
Secondly, and most importantly, the decision document signed by Minister Peci states that the chosen operator of the animal by-product processing plant would receive government subsidies. However, this condition was not mentioned in the public tender published by AUV. The information that the entire contract would be subsidised by the government was, therefore, hidden from the public and potential investors.
Moreover, the application form used was a modified version of the Procurement Regulatory Commission’s standard form. Key sections were removed, including the procurement number and the clause informing participants of their right to appeal.
Furthermore, the call was not published on the Electronic Procurement platform, effectively eliminating the possibility of legal complaints.
According to the submitted business plan, the company intends to process up to 5,000 tons of animal waste per year, with expected annual expenses of 1,157,000 euros. Revenue from processed material is estimated at just 430,000 euros leading to a projected annual loss of 737,000 euros.
The government has, however, committed to subsidise 0.16 cent per kilogram processed, amounting to 800,000 euros annually. This would turn the projected loss into a profit of 63,000 euros per year.
In its 2024 European Commission’s report assessed Kosovo’s progress meeting EU standards on food safety, veterinary, and phytosanitary policy.
Several key areas for necessary improvement were highlighted to ensure full compliance with the EU acquis.
The Commission emphasised the critical importance of establishing a functional system for the collection and safe disposal of animal by-products.
This system is essential for protecting public and animal health and ensuring environmental safety.
Key recommendations and required actions include ensuring the long-term viability and effectiveness of the food control and traceability management systems; implementing and maintaining the Laboratory Information Management System to support testing and analysis in line with EU standards; strengthening the administrative and technical capacities of relevant implementing bodies, this includes increasing staffing levels and enhancing the expertise of personnel responsible for food safety and veterinary controls; expediting the adoption of the draft Law on Animal Health; and approving and beginning the implementation of the five-year development plan for disease monitoring and control.
English version prepared by Ardita Zeqiri