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Shady Deal? Mayor Uses Municipal Building As Collateral For $10,000

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  • Shady Deal? Mayor Uses Municipal Building As Collateral For $10,000

    SHADY DEAL? MAYOR USES MUNICIPAL BUILDING AS COLLATERAL FOR $10,000 BANK LOAN
    Grisha Balasanyan

    hetq
    12:50, February 27, 2012

    Last October, Armavair Regional Administrator Ashot Ghahramanyan
    bestowed Mrgashat village Mayor Gevorg Danielyan with a letter of
    commendation for renovating the St. Astvatzatzin Church.

    What Ghahramanyan still doesn't know is that Mayor Danielyan took
    out a $10,000 bank loan and used the village municipal building as
    collateral. The mayor signed off on the bank loan without the approval
    of the municipal council.

    When I spoke to Mayor Danielyan he brushed off any inference of
    wrongdoing. He refused to be recorded and would only say that the loan
    was for work on the church and that a part of the loan was already
    paid off.

    "Last year we spent 68 million AMD ($175,000) on renovating the
    church. The money was from the village budget. It was an old church
    in terrible condition. What's the big fuss?"

    Our sources in Mrgashat told us that last year the mayor took 18
    hectares of land from the uncultivated land from the villagers and
    used it to plant cotton for himself. The loan, they claim, was for
    this purpose.

    They also state that the church wasn't renovated with municipal funds
    but by small and large donations made by the residents themselves
    and that Sargis Khlghatyan, brother of the Mayor of Armavir, donated
    money to repair the church roof. Another benefactor was MP Nahapet
    Gevorgyan who was bestowed the title of honorary Mgrashat citizen by
    the village council in gratitude.

    Many in the village were also unaware that the municipal building had
    been used as collateral for a bank loan. There's no bulletin board in
    the office and no information about municipal dealings or budgetary
    matters gets posted.

    "There was notice board outside but some village kids tore it down.

    I'll have a new one installed in a few days," Mayor Danielyan promised.

    When we asked Regional Administrator Ghahramanyan if he knew of other
    municipal property in Armavir that had been used as bank collateral,
    he said there wasn't any on file.

    So it would appear that Mayor Danielyan conducted the loan transaction
    on the "sly" and that it was most probably for personal rather than
    village related reasons.

    In his defense, Mayor Danielyan boasted that in the eleven years
    he's served as village mayor, he's built a club, a hospital and
    a kindergarten.

    He says that the village roads and one of the school annexes are in
    need of repair and that work will begin this year. He couldn't tell
    me what particular project would encompass such endeavours.

    "Project? There are many projects out there," was his response.

    He also pointed to municipal funding for a football team and dance,
    puppet and painting clubs.

    Mayor Danielyan says he pays particular attention to the senior
    citizens in the village. He was even to tell me the exact number of
    grandfathers and grandmothers; 350 and 420.

    He says the municipality pays for an annual trip that takes them to
    Lake Sevan.

    "This year, we'll go somewhere different for the summer. But we'll
    take them separately so as not to quarrel," Mayor Danielyan joked.

    He said that starting this year, the municipality would send a wreath
    of flowers to burial services whenever someone in the village passes
    away.

    Every year, 3-4 million of the village's 90 million AMD budget is
    spent of social services, Danielyan added.

    The mayor told me that 1.2 kilometres of village streets will get
    lighting installed and that the State Water Resources Committee has
    launched a tender for the repair of 7.5 kilometres of irrigation pipes.

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