Why big Albanian companies do not publish their annual data? — Out of 30 companies, only 1 with Albanian shareholders makes them publicly available regularly

The largest private taxpayers in Albania with Albanian ownership are reluctant to publish annual data.

This standard is mainly applied by organizations that are part of groups with partner companies based outside our country, as well as by businesses that operate under strong regulatory conditions, such as the banking, insurance, or telecommunications sectors.

According to our research, in the ranking of the 30 largest taxpayers in our country for 2020, the only one among entities with Albanian shareholders that regularly publishes annual data is the BALFIN Group.

But why is the annual report important, and what might be some of the reasons that large business groups may be reluctant to make it public?

Annual data releases also show the internal culture of the corporation; how it is governed; how it manages risk; how it takes care of employees; and how it treats the community that surrounds it. Simply put, the annual report is the “health report” of a company.

But Albanian entrepreneurs seem reluctant in this direction. The reason for this negligence may be the low attachment to modernization of the companies themselves or their lack of touch with following the best international examples in their way of doing business.

Another reason could be the lack of dedication of internal, financial, and human resources to the extent that is necessary for the qualitative preparation of the annual report in accordance with legal requirements and accepted standards.

The preparation of the annual report first requires the implementation of international financial reporting standards and publication on the company’s website or printed. This is common practice for entities consolidated abroad.

In Albania, it turns out that the largest business groups with Albanian shareholders are satisfied with the minimum fulfilment of the legal requirements of financial reporting and publication in the National Business Centre (NCC), which makes it difficult to fully analyze and provide financial and structural governance transparency.

Financial transparency is a concern that international audit companies operating in Albania have expressed several times.

This brings to the fore the fact that the time may have come for legal and regulatory changes to be made, which will enable an improved level of transparency from large business groups in the country.

Written by: Elisabeta Dosku, Translated by: Xhenisa Xhangoli/SCAN

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