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Audits as Party Attack?: Corruption alleged at ministries formerly
headed by PAP members
Society | 12.10.12 | 16:12
By Siranuysh Gevorgyan
ArmeniaNow reporter
The Government continues to reveal new violations at the ministries
formerly under Prosperous Armenia Party (PAP) leadership, which Prime
Minister Tigran Sargsyan has qualified as `disgraceful'.
Following President Serzh Sargsyan's much-discussed September meeting
with the cabinet, during which he criticized the government for
shortcomings and kickbacks in the sphere of state-budget-funded
procurement, audits have been carried out at the ministries of urban
development, healthcare and defense.
The audits have led to the detention of one urban development ministry
employee, Republican Vazgen Khachikyan, who is also the former head of
social welfare service (it operates under the ministry of labor and
social affairs that, again, used to be under PAP leadership).
For violations in delivery of purchases to the Ministry of Defense,
director of Kapan's meet processing factory has been detained, and
earlier Lieutenant-General Arshaluys Paytyan, in charge of
coordinating the ministry's purchase and delivery, was dismissed, as
was the leader of Procurement Assistance Center non-governmental
commercial organization.
The Control Chamber's most recent revelation has been on drug
procurement, as well as medical institutions' failure to fulfill their
tax duties. The violations occurred during the leadership of former
minister, PAP member Harutyun Kushkyan. The same goes for the
violations at the urban development ministry.
During Thursday's session at the health ministry, the head of the
Finance Ministry's department of audit and financial control stated
that in 2009-2010 and this year in February and April, the health
ministry acquired ten drug titles on state money, `making 600 million
drams' (around $1.5 million) worth of unjustified purchases and
unnecessary spending'. The government audit revealed that the drugs
had been bought for prices higher than the market rate.
The State Commission for the Protection of Economic Competition
(SCPEC) had earlier studied the drug market and identified violations
in drug procurement tenders at 80 percent of the monitored 137 medical
institutions, many didn't even hold tenders. SCPEC stated that in 2011
the state budget suffered 1.5 billion drams ($3.7 million) worth of
damage only because of drug procurement violations.
And, according to the State Revenue Committee, the majority of medical
institutions have 50-60 percent higher profit than they show.
The premier has warned that delinquent officials `from now on will
bear personal responsibility'.
PAP has not offered any comment on these developments or speculations
that the investigations are singling out the political party.
headed by PAP members
Society | 12.10.12 | 16:12
By Siranuysh Gevorgyan
ArmeniaNow reporter
The Government continues to reveal new violations at the ministries
formerly under Prosperous Armenia Party (PAP) leadership, which Prime
Minister Tigran Sargsyan has qualified as `disgraceful'.
Following President Serzh Sargsyan's much-discussed September meeting
with the cabinet, during which he criticized the government for
shortcomings and kickbacks in the sphere of state-budget-funded
procurement, audits have been carried out at the ministries of urban
development, healthcare and defense.
The audits have led to the detention of one urban development ministry
employee, Republican Vazgen Khachikyan, who is also the former head of
social welfare service (it operates under the ministry of labor and
social affairs that, again, used to be under PAP leadership).
For violations in delivery of purchases to the Ministry of Defense,
director of Kapan's meet processing factory has been detained, and
earlier Lieutenant-General Arshaluys Paytyan, in charge of
coordinating the ministry's purchase and delivery, was dismissed, as
was the leader of Procurement Assistance Center non-governmental
commercial organization.
The Control Chamber's most recent revelation has been on drug
procurement, as well as medical institutions' failure to fulfill their
tax duties. The violations occurred during the leadership of former
minister, PAP member Harutyun Kushkyan. The same goes for the
violations at the urban development ministry.
During Thursday's session at the health ministry, the head of the
Finance Ministry's department of audit and financial control stated
that in 2009-2010 and this year in February and April, the health
ministry acquired ten drug titles on state money, `making 600 million
drams' (around $1.5 million) worth of unjustified purchases and
unnecessary spending'. The government audit revealed that the drugs
had been bought for prices higher than the market rate.
The State Commission for the Protection of Economic Competition
(SCPEC) had earlier studied the drug market and identified violations
in drug procurement tenders at 80 percent of the monitored 137 medical
institutions, many didn't even hold tenders. SCPEC stated that in 2011
the state budget suffered 1.5 billion drams ($3.7 million) worth of
damage only because of drug procurement violations.
And, according to the State Revenue Committee, the majority of medical
institutions have 50-60 percent higher profit than they show.
The premier has warned that delinquent officials `from now on will
bear personal responsibility'.
PAP has not offered any comment on these developments or speculations
that the investigations are singling out the political party.