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POLITICAL SCAPEGOATS?: PRESIDENT SARGSYAN SCOLDS GOVERNMENT FOR 'KICKBACKS'
By Naira Hayrumyan
ArmeniaNow
18.09.12
Photo: www.president.am
Social networks over the past weekend were actively discussing
information about a government meeting where President Serzh Sargsyan
sharply criticized the government and made some serious accusations.
The head of the Control Service under the President, Hovhannes
Hovsepyan, presented the results of audits in the system of procurement
during which the service concluded that serious violations are
committed in the sphere. In particular, state agencies squander budget
money by holding non-transparent tenders and buying goods at prices
higher than elsewhere in the market.
Sargsyan said that in a number of areas, such as urban development,
transportation and communications, defense, health, and especially in
the market of medicines, there are many problems associated with the
procurement and disposal of public funds. The head of state instructed
the National Security Service and the Prosecutor General's Office
to seriously address this issue. "I want you all to become not only
formal, but real, allies who are interested in solving these problems,"
Sargsyan underscored.
This attitude drew skeptical comments from many who remembered similar
statements by the president that remain without legal consequences.
The opposition has already described it as a "theatrical show". On
the other hand, it led some experts to assume that Sargsyan is going
to dismiss his government in order to comply with the demand of the
Prosperous Armenia Party (PAP) and ex-president Robert Kocharyan,
who stands behind it. The PAP and Kocharyan apparently want to see
"their" man as prime minister.
Commenting on such assumptions, spokesman for the ruling Republican
Party of Armenia (RPA), deputy speaker of parliament Edward Sharmazanov
said that the statement of President Sargsyan simply means that those
in the upper echelons of power do know what is really going on.
"Yes, there are problems. We say that there is corruption in the
country. But we also say that the RPA has not discussed the issue of
changing the prime minister and the party trusts the political course
of its government," he said.
Prime Minister Tigran Sargsyan assured President Sargsyan that
the government will discuss in detail the issues raised and will
provide a schedule of its activities to address them. "All of these
estimations that you gave have sobered us and force us to make major
adjustments in our activities, and we will do it by all means,"
said Prime Minister Sargsyan.
The sphere of procurements has always been considered one of the most
corrupt in Armenia. Under the guise of tenders deals are concluded
as a result of which businessmen receive government contracts at
overestimated prices, and in return responsible government officials
receive "kickbacks".
This is a corrupt practice typical of Russia where many foreign
investors say kickbacks are a usual phenomenon.
A few years ago more than 400 foreign companies operating in Russia
wrote a petition agreeing not to pay bribes and kickbacks. But after
a few months, many admitted that without such kickbacks it was simply
impossible to obtain government contracts.
Businessmen say the same thing about Armenia, and recipients of
government contracts are usually large oligarchs who are represented
both in power and in business.
A few days ago information appeared in the Armenian press that a U.S.
federal court in New York ordered Armenia's ex-minister of environment
and current MP Vardan Ayvazyan to pay more than $37 million in damages
to a U.S. mining company that has accused him of corruption.
The Global Gold Corporation publicly accused Ayvazyan in 2006 of
demanding a $3 million bribe from its top executives after the Armenian
Ministry of Environment terminated the company's license to carry out
exploratory and mining operations at a small gold deposit in Hankavan.
A new Facebook group, "Fighting Oligarchs", has emerged online,
with hundreds of users already joining it. This matter became
particularly topical after last summer's deadly beating of military
doctor Vahe Avetyan at a restaurant belonging to Ruben Hayrapetyan,
a government-connected MP and affluent businessman.
Vahe Avetyan's sister and the 'Vahe Avetyan' civil movement appealed
to the international community and foreign states with a demand to
block entry to their countries to Armenian officials involved in the
violations of laws and human rights. They suggest creating a so-called
"Avetyan list" like the famous "Magnitsky list" created by the U.S.
Congress that prohibits entry to the United States for officials who
violate the law and human rights in Russia.
By Naira Hayrumyan
ArmeniaNow
18.09.12
Photo: www.president.am
Social networks over the past weekend were actively discussing
information about a government meeting where President Serzh Sargsyan
sharply criticized the government and made some serious accusations.
The head of the Control Service under the President, Hovhannes
Hovsepyan, presented the results of audits in the system of procurement
during which the service concluded that serious violations are
committed in the sphere. In particular, state agencies squander budget
money by holding non-transparent tenders and buying goods at prices
higher than elsewhere in the market.
Sargsyan said that in a number of areas, such as urban development,
transportation and communications, defense, health, and especially in
the market of medicines, there are many problems associated with the
procurement and disposal of public funds. The head of state instructed
the National Security Service and the Prosecutor General's Office
to seriously address this issue. "I want you all to become not only
formal, but real, allies who are interested in solving these problems,"
Sargsyan underscored.
This attitude drew skeptical comments from many who remembered similar
statements by the president that remain without legal consequences.
The opposition has already described it as a "theatrical show". On
the other hand, it led some experts to assume that Sargsyan is going
to dismiss his government in order to comply with the demand of the
Prosperous Armenia Party (PAP) and ex-president Robert Kocharyan,
who stands behind it. The PAP and Kocharyan apparently want to see
"their" man as prime minister.
Commenting on such assumptions, spokesman for the ruling Republican
Party of Armenia (RPA), deputy speaker of parliament Edward Sharmazanov
said that the statement of President Sargsyan simply means that those
in the upper echelons of power do know what is really going on.
"Yes, there are problems. We say that there is corruption in the
country. But we also say that the RPA has not discussed the issue of
changing the prime minister and the party trusts the political course
of its government," he said.
Prime Minister Tigran Sargsyan assured President Sargsyan that
the government will discuss in detail the issues raised and will
provide a schedule of its activities to address them. "All of these
estimations that you gave have sobered us and force us to make major
adjustments in our activities, and we will do it by all means,"
said Prime Minister Sargsyan.
The sphere of procurements has always been considered one of the most
corrupt in Armenia. Under the guise of tenders deals are concluded
as a result of which businessmen receive government contracts at
overestimated prices, and in return responsible government officials
receive "kickbacks".
This is a corrupt practice typical of Russia where many foreign
investors say kickbacks are a usual phenomenon.
A few years ago more than 400 foreign companies operating in Russia
wrote a petition agreeing not to pay bribes and kickbacks. But after
a few months, many admitted that without such kickbacks it was simply
impossible to obtain government contracts.
Businessmen say the same thing about Armenia, and recipients of
government contracts are usually large oligarchs who are represented
both in power and in business.
A few days ago information appeared in the Armenian press that a U.S.
federal court in New York ordered Armenia's ex-minister of environment
and current MP Vardan Ayvazyan to pay more than $37 million in damages
to a U.S. mining company that has accused him of corruption.
The Global Gold Corporation publicly accused Ayvazyan in 2006 of
demanding a $3 million bribe from its top executives after the Armenian
Ministry of Environment terminated the company's license to carry out
exploratory and mining operations at a small gold deposit in Hankavan.
A new Facebook group, "Fighting Oligarchs", has emerged online,
with hundreds of users already joining it. This matter became
particularly topical after last summer's deadly beating of military
doctor Vahe Avetyan at a restaurant belonging to Ruben Hayrapetyan,
a government-connected MP and affluent businessman.
Vahe Avetyan's sister and the 'Vahe Avetyan' civil movement appealed
to the international community and foreign states with a demand to
block entry to their countries to Armenian officials involved in the
violations of laws and human rights. They suggest creating a so-called
"Avetyan list" like the famous "Magnitsky list" created by the U.S.
Congress that prohibits entry to the United States for officials who
violate the law and human rights in Russia.