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Inspections Of Businesses In Armenia To Be Based On Risk Assessment

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  • Inspections Of Businesses In Armenia To Be Based On Risk Assessment

    INSPECTIONS OF BUSINESSES IN ARMENIA TO BE BASED ON RISK ASSESSMENT

    /ARKA/
    MAY 25, 2011
    YEREVAN

    YEREVAN, May 25. /ARKA/. On Wednesday, Armenian National Assembly
    passed at the first reading amendments to the law on inspections.

    These amendments imply transition to inspections based on risk
    assessment.

    Economy Minister Tigran Davtyan, presenting the bill to lawmakers,
    said that the amendments imply new fundamental changes in organization
    of inspections of businesses. They propose to divide economic entities
    into three groups - high, moderate and low-risk categories.

    The minister pointed out some faults in the current system of
    inspections, which often were unnecessary and displeased entrepreneurs.

    He said that only high-risk businesses would be inspected.

    It is also planned to create database of results of inspections.

    Frequency of inspections will be restricted - high-risk economic
    entities will be inspected no more than once a year, moderate risk
    companies once in three years and low-risk businesses once in five
    years.

    Special forms filled by economic entities will be taken as basis
    for inspections.

    "This is a crucial step that changes inspection principles and will
    spur development of small and mid-scale businesses, since rules of this
    game will be simple and clear and will create favorable environment
    for those companies doing their business above board," Davtyan
    said. Artsvik Minasyan, MP from Armenian Revolutionary Federation
    Dashnaktsutyun, speaking at the same parliamentary session, said that
    the present inspection system in Armenia is blighted with corruption
    and targeted on small and medium companies.

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