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STATE PROPERTY MANAGEMENT DEPARTMENT HAS CAUSED CONSIDERABLE DAMAGE TO THE BUDGET, OFFICE OF RA PROSECUTOR GENERAL STATES
Noyan Tapan
Apr 19 2006
YEREVAN, APRIL 19, NOYAN TAPAN. The materials of the Control
Chamber's studies on the report on implementation of the 2001-2003
privatization program were sent by the RA National Assembly Speaker
Artur Baghdasarian to the RA Prosecutor General. At the request of
the mass media, the press service of the Office of the RA Prosecutor
General published the reply of the Office, which in particular reads:
In 2001-2003, the State Property Management Department adjunct to
the Armenian government prepared and implemented, in accordance
with decisions of the government, the program of alienation of 206
objects considered to be state proberty. Under Point 3 of the order
established by the governmental decision No 91 of 1994, the main assets
representing state property may be sold only by auction. During the
indicated period, 85 out of the 206 objects were sold by auction,
109 of the remaining 121 objects were alienated through direct sale,
and 12 - through tender. In violation of Point 1 of Decision No 92 of
February 25, 1994, the Company Support and State Property Evaluation
Agency not only set the intitial prices of property but also made
evaluation by using the "balance method", with evaluation having a
formal character. Alienation was carried out at different prices. It
should be noted that the RA Ministry of Finance and Economy, which
is obliged to send its conclusion about privatization issues to the
government, in some cases expressing its disagreement over alienation
at the given prices and in the given form, expressed its perplexity at
the fact that in some cases the State Property Management Department
does not allocate buildings for state needs, while in other cases it
alienates state buildings at low and concessional prices to private
persons. Such an approach of the State Property Management Department
adjunct to the Armenian government to the process of state property
alienation has caused considerable damage to the budget, as the real
estate was assessed and alienated at the prices, which were much lower
than the actual (market) value. The reply of the Office of the RA
Prosecutor General says that in connection with the above mentioned
facts, some employees of the State Property Management Department
were asked to provide explanations but they failed to explain
clearly in what order the property alienation was carried out. The
evaluation and alienation of property by direct sale or tender was
done arbitrarily, without any order. Moreover, the draft decisions
on property alienation, which were submitted to the government,
as a rule expressed the interests of particular persons. A petition
has been filed to the State Property Management Department adjunct
to the Armenian government in order to eliminate the causes of the
violations revealed and the conditions conducive to their commission
and to avoid such violations in the future. A report on the results
of the checks conducted by the Office of the Prosecutor General has
been submitted to the RA Prime Minsiter.
Noyan Tapan
Apr 19 2006
YEREVAN, APRIL 19, NOYAN TAPAN. The materials of the Control
Chamber's studies on the report on implementation of the 2001-2003
privatization program were sent by the RA National Assembly Speaker
Artur Baghdasarian to the RA Prosecutor General. At the request of
the mass media, the press service of the Office of the RA Prosecutor
General published the reply of the Office, which in particular reads:
In 2001-2003, the State Property Management Department adjunct to
the Armenian government prepared and implemented, in accordance
with decisions of the government, the program of alienation of 206
objects considered to be state proberty. Under Point 3 of the order
established by the governmental decision No 91 of 1994, the main assets
representing state property may be sold only by auction. During the
indicated period, 85 out of the 206 objects were sold by auction,
109 of the remaining 121 objects were alienated through direct sale,
and 12 - through tender. In violation of Point 1 of Decision No 92 of
February 25, 1994, the Company Support and State Property Evaluation
Agency not only set the intitial prices of property but also made
evaluation by using the "balance method", with evaluation having a
formal character. Alienation was carried out at different prices. It
should be noted that the RA Ministry of Finance and Economy, which
is obliged to send its conclusion about privatization issues to the
government, in some cases expressing its disagreement over alienation
at the given prices and in the given form, expressed its perplexity at
the fact that in some cases the State Property Management Department
does not allocate buildings for state needs, while in other cases it
alienates state buildings at low and concessional prices to private
persons. Such an approach of the State Property Management Department
adjunct to the Armenian government to the process of state property
alienation has caused considerable damage to the budget, as the real
estate was assessed and alienated at the prices, which were much lower
than the actual (market) value. The reply of the Office of the RA
Prosecutor General says that in connection with the above mentioned
facts, some employees of the State Property Management Department
were asked to provide explanations but they failed to explain
clearly in what order the property alienation was carried out. The
evaluation and alienation of property by direct sale or tender was
done arbitrarily, without any order. Moreover, the draft decisions
on property alienation, which were submitted to the government,
as a rule expressed the interests of particular persons. A petition
has been filed to the State Property Management Department adjunct
to the Armenian government in order to eliminate the causes of the
violations revealed and the conditions conducive to their commission
and to avoid such violations in the future. A report on the results
of the checks conducted by the Office of the Prosecutor General has
been submitted to the RA Prime Minsiter.