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State Property Management Department Has Caused Considerable Damage

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  • State Property Management Department Has Caused Considerable Damage

    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.
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