PRISTINA, Kosovo — An Albanian court has placed the mayor of the capital city, Erion Veliaj, in custody, citing allegations of significant corruption involving public funds. The decision came on Monday amid accusations that Veliaj and others are linked to fraudulent activities amounting to millions of dollars.

In a reaction posted on Facebook, the 45-year-old mayor dismissed the claims as ludicrous, asserting that neither he nor his family has any connections to corruption.

The case is being managed by the Special Court for Corruption and Organized Crime, which specializes in handling matters involving high-ranking officials and politicians. The court is expected to make a determination within 48 hours regarding whether Veliaj and his co-accused will remain in custody while investigations are ongoing and before any formal charges are made.

Veliaj faces allegations that he misappropriated at least 1.1 million Euros (approximately $1.13 million) in public funds by funneling these resources to businesses, which in return allegedly provided illegal profits to his family.

Serving his second term as mayor, Veliaj previously held a ministerial position within Prime Minister Edi Rama’s administration and is affiliated with the ruling Socialist Party.

Last year, Albania engaged in talks with the European Union aimed at enhancing its alignment with EU standards on the rule of law, the operation of democratic institutions, and the combat against corruption. The persistent issue of graft has hindered the nation’s development, with Albania aiming to secure EU membership by 2030, as stated by Prime Minister Rama.

Judicial bodies supported by both the European Union and the United States have initiated multiple investigations into alleged corruption involving notable government figures, including former president and prime minister Sali Berisha and another former president, Ilir Meta, among others.