Albanian prosecutors have issued 14 precautionary measures and arrested nine individuals linked to Bankers Petroleum Albania as part of an investigation into tax evasion and money laundering, the General Prosecution Office said in a statement. 

Bankers Petroleum Albania is a subsidiary of China’s Geo-Jade Petroleum, and the largest oil producer in Albania. It manages the Patos-Marinza oil field, which is the country’s largest and ranks among the biggest onshore oil fields in Europe. 

The probe, launched in December following a referral from the Tax Investigation Directorate, alleges that the company reported financial losses for 20 years while generating significant revenue from oil production and sales, allowing it to evade taxes and claim fraudulent VAT reimbursements.

“The investigations substantiated that from 2004 to the end of 2024, the company has consistently reported financial losses, resulting in no revenue being accrued by the Albanian state from its activities over the past 20 years,” the prosecutor’s office said. 

"This is despite the extraction and trading of substantial quantities of fuel in the oil-rich regions of Patos-Marinëz-Fier.”

According to the statement, the company reported exports and domestic sales worth more than ALL532bn (€3.5bn) over the period. Prosectors said Bankers reported tax expenses exceeding revenue generated, declaring losses in each fiscal year amounting to a total of ALL117bn. 

“Preliminary findings from the investigation establish that the financial damage inflicted on the state budget, particularly through fraudulent VAT claims, amounts to several million euros,” the statement said. 

Among those detained are the company’s current administrator, identified by prosectors as H.X — Hongping Xiao according to local media — and its former administrator, L.Ç. (Leonidha Çobo), along with several others in leadership positions. Authorities have also declared five individuals, mostly foreign nationals, wanted in connection with the case.

The charges under investigation include “creation of fraudulent schemes regarding value added tax”, “concealment of income”, “laundering the proceeds of criminal offence or criminal activity” and “abuse of office”, prosecutors said.

“It is suspected that, throughout its operations, ‘Bankers Petroleum Albania Ltd’ has artificially inflated its expenses with the intent of reporting losses in its annual financial statements,” the prosecution said. 

“As a result, the company has evaded payment of corporate taxes while benefiting from VAT reimbursements through fraudulent schemes, with the assistance of individuals and other contracting entities engaged in various activities,” it added. 

Prosecutors, working with the local police and tax authorities, conducted searches at company offices and private residences, seizing documents and materials linked to the alleged crimes.

Authorities said investigations remain ongoing into alleged fraudulent VAT schemes and money laundering activities involving individuals and contractors in Albania and abroad.

“Fier Prosecution reaffirms its commitment to effectively pursuing criminal prosecution and holding accountable those responsible for these tax and fiscal offences,” the office said.

Bankers responded on July 4 with a statement saying its leadership team "has integrated honesty into every aspect of BPAL operations”. 

“In response to recent regulatory investigations, BPAL and our parent company, BPL, are committed to fully cooperating with Albanian authorities,” said the statement posted on Facebook. 

“We are in the process of appointing a senior representative to ensure full cooperation and operational transparency. We respect and support all legal measures to maintain regulatory standards and integrity in Albania. So far, our operations remain stable, our core team is complete and our daily activities continue without major interruptions.” 

In 2004, Canada-based Bankers secured an agreement granting it the right to operate the Patos-Marinza oilfield in Albania. Four years later, the company expanded its presence in the country by acquiring the Kuçova oilfield, Albania’s second-largest onshore oilfield.

The company was acquired by affiliates of China’s Geo-Jade Petroleum Corporation in 2016 in a deal valued at around CAD575mn. Following the deal, Bankers’ shares were delisted from the Toronto Stock Exchange and the AIM market of the London Stock Exchange.

Bankers says it has invested $4.5bn in the Albanian economy since 2004, and been responsible for 83% of crude oil production.