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New Gyumri Mayor Fumes Over "Huge Debt" From Predecessor

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  • New Gyumri Mayor Fumes Over "Huge Debt" From Predecessor

    NEW GYUMRI MAYOR FUMES OVER "HUGE DEBT" FROM PREDECESSOR

    http://www.armenianow.com/news/40594/armenia_mayor_gyumri_samvel_balasanyan_vardan_ghuk asyan
    News | 26.10.12 | 10:59

    The new administration of Armenia's second largest city of Gyumri has
    accused former managers of running into huge and mostly unreasonable
    debts as newly elected mayor Samvel Balasanyan met with Municipal
    Assembly members on Thursday.

    Enlarge Photo Samvel Balasanyan, Vardan Ghukasyan

    At the meeting Balasanyan said the administration of his predecessor
    Vardan Ghukasyan spent the money earmarked for the whole year of its
    operations within just nine months, at the same time accumulating
    a debt of about 827 million drams (more than $2 million) only for
    utility services.

    Balasanyan, a member of the Prosperous Armenia Party, took over as
    Gyumri mayor earlier this month after winning in September elections
    in which Ghukasyan, a longtime mayor of the city and member of the
    ruling Republican Party of Armenia, did not seek reelection.

    Balasanyan, who also enjoyed the support of the Republicans during
    the election, made it clear to Municipal Assembly members that the
    onus was on their successors - due to assume power on November 12 -
    to clear up the mess and deal with the debt problem.

    "There are debts for natural gas supply, electricity, communication
    services, salaries, advertising, publication as well as to a number
    of construction companies," state-run news agency Armenpress quoted
    Balasanyan as saying.

    The newly elected mayor, in particular, fumed over the arrears on
    account of salaries for August and September that, he said, amount
    to 209 million drams (more than $500,000).

    "With such utility debts the municipality wouldn't be able to breath.

    There are even some organizations that have threatened to take the
    matter to courts," said Balasanyan.

    Remarkably, among such "organizations" is also the recently built
    posh hotel Alexandropol that belongs to ex-mayor Ghukasyan.

    Meanwhile, as proof of his intent to keep the city expenses down, new
    mayor Balasanyan said he would refuse to avail himself of bodyguards'
    services.

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