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By Prof. Osheen Keshishian
The Armenian Observer
2 June 2004
Recently I told a friend: "Did you know that the Armenian government
sold the AGBU-sponsored and donated cold storage facility for
$150,000?"
The answer was: "What else is new? Isn't that routine?"
For some people the sale of the Gumri (Armenia) cold food storage
facility did not come as a surprise because for months rumors
were circulating in Armenia and the Diaspora about the transfer
of ownership. But the real surprise was the price tag: $150,000! A
storage facility which cost $5 million to build...
It's not hard to figure out -- the facility was sold for 3% of it's
value... What a sham! And all this, as they say, in broad daylight. I
would have bid had I known it was on the auction block. Did anyone
else get a chance to bid?
The 10,000-ton cold storage facility was built by Intercool, a renowned
Danish company, for $5 million. The Armenian General Benevolent
Union (AGBU) raised the money and built the facility following the
devastating 1988 earthquake with the hope that food will be stored in
the summer so that during the harsh winter season in this northern
region of Armenia, people will have something to eat. What a great
idea it was and the community quickly raised the funds. Unfortunately,
the facility did not function for a while because of the energy crisis.
Hagop Avedikian, editor of the Yerevan-based Azg daily and Tatul
Hagopian, a writer, in a signed article revealed some interesting
details.
The Minister of Commerce and Industry, Garen Jeshmaridian (the last
name literally means "truth-teller") in a letter to the writers states:
"I am informing you that Gumri's cold storage facility was on the
list of the denationalization program of 1998-2000 but procedures were
not initiated. At the same time I am informing you that by decision
of the court, dated April 18, 2002, the cold storage facility has
been declared non-solvent and on March 12, 2003, the entire facility
was sold at auction to the Gechor company."
Non-solvency in Armenia means the enterprise did not pay taxes. Since
it was a gift to the government of Armenia, and belonged to the
government, then who collects taxes and from whom? Or, who pays
taxes to whom? Probably, you collect taxes from... yourself? Does
this make sense?
Technically, the AGBU cannot make an issue out of this because
it was given as a gift and the receiver can do whatever he wants
with it. Right? But as I understand, and I may be slightly wrong,
if a facility is sold in Armenia by the government, the donor of the
facility should have first option to bid on the entity. Just like the
51% stockholder in an enterprise in Armenia is given the opportunity
to buy the rest of the stocks.
The law is there, and I am not sure if anyone has enforced it. On
the contrary, several Diasporan Armenians have lost their shirts
(maybe not their entire shirts, only their sleeves...)
This is a serious matter, and if it is not clarified, relations
could spiral downward and I think we should not be satisfied with
the worn-out statement that "Armenia is a new country. Give it a
chance." No band-aid solutions, please.
There are laws enacted in Armenia. But, unfortunately, they are not
enforced. The government has only selectively enforced the laws,
presenting an opportunity to people to abuse their authority and
position, whether related to human rights or economic graft. US senior
State Department official, Ambassador Carlos Pascual only recently
said that the Armenian Government's human rights record remains poor.
The AGBU was planning to invest money in Armenia in the near
future. The organization should think twice (or three times) before
taking new steps.
By Prof. Osheen Keshishian
The Armenian Observer
2 June 2004
Recently I told a friend: "Did you know that the Armenian government
sold the AGBU-sponsored and donated cold storage facility for
$150,000?"
The answer was: "What else is new? Isn't that routine?"
For some people the sale of the Gumri (Armenia) cold food storage
facility did not come as a surprise because for months rumors
were circulating in Armenia and the Diaspora about the transfer
of ownership. But the real surprise was the price tag: $150,000! A
storage facility which cost $5 million to build...
It's not hard to figure out -- the facility was sold for 3% of it's
value... What a sham! And all this, as they say, in broad daylight. I
would have bid had I known it was on the auction block. Did anyone
else get a chance to bid?
The 10,000-ton cold storage facility was built by Intercool, a renowned
Danish company, for $5 million. The Armenian General Benevolent
Union (AGBU) raised the money and built the facility following the
devastating 1988 earthquake with the hope that food will be stored in
the summer so that during the harsh winter season in this northern
region of Armenia, people will have something to eat. What a great
idea it was and the community quickly raised the funds. Unfortunately,
the facility did not function for a while because of the energy crisis.
Hagop Avedikian, editor of the Yerevan-based Azg daily and Tatul
Hagopian, a writer, in a signed article revealed some interesting
details.
The Minister of Commerce and Industry, Garen Jeshmaridian (the last
name literally means "truth-teller") in a letter to the writers states:
"I am informing you that Gumri's cold storage facility was on the
list of the denationalization program of 1998-2000 but procedures were
not initiated. At the same time I am informing you that by decision
of the court, dated April 18, 2002, the cold storage facility has
been declared non-solvent and on March 12, 2003, the entire facility
was sold at auction to the Gechor company."
Non-solvency in Armenia means the enterprise did not pay taxes. Since
it was a gift to the government of Armenia, and belonged to the
government, then who collects taxes and from whom? Or, who pays
taxes to whom? Probably, you collect taxes from... yourself? Does
this make sense?
Technically, the AGBU cannot make an issue out of this because
it was given as a gift and the receiver can do whatever he wants
with it. Right? But as I understand, and I may be slightly wrong,
if a facility is sold in Armenia by the government, the donor of the
facility should have first option to bid on the entity. Just like the
51% stockholder in an enterprise in Armenia is given the opportunity
to buy the rest of the stocks.
The law is there, and I am not sure if anyone has enforced it. On
the contrary, several Diasporan Armenians have lost their shirts
(maybe not their entire shirts, only their sleeves...)
This is a serious matter, and if it is not clarified, relations
could spiral downward and I think we should not be satisfied with
the worn-out statement that "Armenia is a new country. Give it a
chance." No band-aid solutions, please.
There are laws enacted in Armenia. But, unfortunately, they are not
enforced. The government has only selectively enforced the laws,
presenting an opportunity to people to abuse their authority and
position, whether related to human rights or economic graft. US senior
State Department official, Ambassador Carlos Pascual only recently
said that the Armenian Government's human rights record remains poor.
The AGBU was planning to invest money in Armenia in the near
future. The organization should think twice (or three times) before
taking new steps.