Tweet
ARE THE ARMENIAN AUTHORITIES READY TO QUARREL WITH THE U.S.?
Vestnik Kavkaza
Sept 24 2012
Russia
Author: Susanna Petrosian, Yerevan, exclusively to VK
In September, the judgment of the court of the Southern District of New
York on collecting 37 million 537 thousand 978 dollars from ex-Minister
of the Environment Vartan Aivazian in favor of an international gold
mining company, Global Gold Mining (GGM), came into effect.
According to the available materials of the court verdict, in 2006,
one of the subsidiaries of GGM, which had a license to develop a gold
mine in Hankavan, faced corrupt and inappropriate requirements from
Aivazian. The company reported this to the appropriate authorities
of Armenia and the United States. As a result, GGM lost control over
the mine. Vartan Aivazian himself is now a member of the National
Assembly from the ruling Republican Party of Armenia (RPA) and the
head of the permanent parliamentary commission for the economy;
he considers this fine to be absurd and does not see any legal
consequences in the verdict of the American court.
Aivazian, who in 2001-2007 served as Minister of Environment, says
that his decision to revoke the license of GGM was correct, as the
company failed to comply with laws and its own obligations. According
Aivazian, he did not act as an individual, but as a minister, and he
was protecting the interests of the state. The ex-minister is shocked
that his case has been investigated in the U.S., not in Armenia. "Even
if a wrong decision was made at the time, I must be responsible for
it before the Republic of Armenia, and not before the court of the
Southern District of New York," Aivazian said and advised GGM to
apply to the Armenian Administrative Court, and if the claim is not
sustained - to European courts.
In turn, the representative of the Global Gold Mining in Armenia,
Ashot Poghosyan, said that under the agreement made between the
three shareholders of the GGM, the Court of the Southern District of
New York was chosen as a court of law to resolve the disputes. In
accordance with the law of New York, the court considered Aivazian
to be a hidden party to the conflict. "All documents relating to the
trial, including the verdict, were thoroughly sent to Aivazian, but
he did not respond to that, and did not exercise his right to appeal
the verdict," Ashot Poghosyan said. According to him, the court has
already handed the writ of the National Service for execution.
The roots of today's scandal lie in 2005, when the international
corporation GGM, registered in the U.S., acquired a license for the
development of several gold mines in Armenia, including a mine in
Hankavan. This license was revoked by the Minister of the Environment.
GGM representatives led documentary evidence that they did not violate
their obligations and worked in the fully legal field. The media also
leaked information that the Minister of Environment asked the company
representatives for a bribe of three million dollars, and that refusal
to provide the requested amount was the cause of the scandal. It is
likely that leakage of this information was organized by the company.
Then, despite numerous publications in the media, which openly said
that Ayvazyan asked foreign companies for bribes, the minister never
tried to appeal against such claims.
"Speak to those people who said that I was offered a bribe. Suppose
that at least one person will say that I demanded money, and I will
be able to appeal this claim. As a Minister, I applied administrative
proceedings. I revoked their licenses. May they come to our Court of
Justice and the court may say:"Mr. Aivazian, you made a mistake."
Operating according to their own interests, they are trying to smear
my reputation," the ex-minister said.
There are several publications of the website Wikileaks noteworthy in
this regard, which, with reference to the dispatch of U.S. Ambassador
to Armenia John Evans say: "According to the information of the company
GGM, in July 2005, the Minister of Environmental Protection Vardan
Aivazian notified the company lawyer Ashot Poghosyan that the company
had to pay a bribe of $3 million to his close associate and MP Murad
Guloyanu. GGM refused to pay the bribe, and soon the Ministry revoked
the licenses of the two mines of the company in Armenia. GGM argued
that due to its refusal to pay a bribe, the Minister refused to issue
a license, for which GGC had all the rights, issued duplicates of
the license to mines owned and developed by GGM to other companies,
and generally obstructed GGM in the conduct of its business. "
Some observers believe that the writ issued by the court of New York
cannot be executed, because there is no bilateral intergovernmental
agreement between Armenia and the U.S. on recognition and enforcement
of judicial decisions. "As long as there is no decision of the
International Court of Arbitration on this case, this act cannot be
performed. The arbitration shall apply to the authorities of Armenia,
so that they recognize and accept the decision. But in the case of
the arrival of Vartan Aivazian in the U.S., he will be under the
jurisdiction of the U.S.," lawyer Ara Ghazaryan says.
However, the former Ambassador of Armenia to Canada, Ara Papian,
believes that the U.S. can apply to Interpol, which means that in
case of default of payment Aivazian can be arrested in 190 countries;
besides, the United States may apply to the Armenian authorities on
this matter.
In a recent interview with the electronic edition 1in.am, the CEO of
GGM, U.S. citizen Van Krikorian, did not rule out that the case may
be referred to the U.S. State Department; he also reported that his
lawyers could make such a decision.
Given the strict attitude of international institutions to the
protection of foreign investments, future developments are to be
expected. Systematic steps to protect their rights and the fight
against the phenomenon of corruption in Armenia "openly" speak in
favor of GGM. After 20 years of independence of Armenia there have
been many cases when foreign investors, including representatives of
the Armenian diaspora, experienced corruption pressure from local
government officials. But none of the foreign visitors came out to
fight openly, most preferred to arrange leaks to the media and to
leave Armenia. It is also clear that the leadership of GGM has well
thought through all the possible mechanisms, and the case is hardly
likely to come to a legal impasse.
Now, for the first time in the last 10 years, the interests of a
senior official (a deputy from the ruling party) are affected, and
this category hitherto enjoyed immunity and permissiveness in Armenia.
Now the government will have to choose between the relationship with
the U.S. and Vartan Aivazian.
http://vestnikkavkaza.net/analysis/politics/31751.html
Vestnik Kavkaza
Sept 24 2012
Russia
Author: Susanna Petrosian, Yerevan, exclusively to VK
In September, the judgment of the court of the Southern District of New
York on collecting 37 million 537 thousand 978 dollars from ex-Minister
of the Environment Vartan Aivazian in favor of an international gold
mining company, Global Gold Mining (GGM), came into effect.
According to the available materials of the court verdict, in 2006,
one of the subsidiaries of GGM, which had a license to develop a gold
mine in Hankavan, faced corrupt and inappropriate requirements from
Aivazian. The company reported this to the appropriate authorities
of Armenia and the United States. As a result, GGM lost control over
the mine. Vartan Aivazian himself is now a member of the National
Assembly from the ruling Republican Party of Armenia (RPA) and the
head of the permanent parliamentary commission for the economy;
he considers this fine to be absurd and does not see any legal
consequences in the verdict of the American court.
Aivazian, who in 2001-2007 served as Minister of Environment, says
that his decision to revoke the license of GGM was correct, as the
company failed to comply with laws and its own obligations. According
Aivazian, he did not act as an individual, but as a minister, and he
was protecting the interests of the state. The ex-minister is shocked
that his case has been investigated in the U.S., not in Armenia. "Even
if a wrong decision was made at the time, I must be responsible for
it before the Republic of Armenia, and not before the court of the
Southern District of New York," Aivazian said and advised GGM to
apply to the Armenian Administrative Court, and if the claim is not
sustained - to European courts.
In turn, the representative of the Global Gold Mining in Armenia,
Ashot Poghosyan, said that under the agreement made between the
three shareholders of the GGM, the Court of the Southern District of
New York was chosen as a court of law to resolve the disputes. In
accordance with the law of New York, the court considered Aivazian
to be a hidden party to the conflict. "All documents relating to the
trial, including the verdict, were thoroughly sent to Aivazian, but
he did not respond to that, and did not exercise his right to appeal
the verdict," Ashot Poghosyan said. According to him, the court has
already handed the writ of the National Service for execution.
The roots of today's scandal lie in 2005, when the international
corporation GGM, registered in the U.S., acquired a license for the
development of several gold mines in Armenia, including a mine in
Hankavan. This license was revoked by the Minister of the Environment.
GGM representatives led documentary evidence that they did not violate
their obligations and worked in the fully legal field. The media also
leaked information that the Minister of Environment asked the company
representatives for a bribe of three million dollars, and that refusal
to provide the requested amount was the cause of the scandal. It is
likely that leakage of this information was organized by the company.
Then, despite numerous publications in the media, which openly said
that Ayvazyan asked foreign companies for bribes, the minister never
tried to appeal against such claims.
"Speak to those people who said that I was offered a bribe. Suppose
that at least one person will say that I demanded money, and I will
be able to appeal this claim. As a Minister, I applied administrative
proceedings. I revoked their licenses. May they come to our Court of
Justice and the court may say:"Mr. Aivazian, you made a mistake."
Operating according to their own interests, they are trying to smear
my reputation," the ex-minister said.
There are several publications of the website Wikileaks noteworthy in
this regard, which, with reference to the dispatch of U.S. Ambassador
to Armenia John Evans say: "According to the information of the company
GGM, in July 2005, the Minister of Environmental Protection Vardan
Aivazian notified the company lawyer Ashot Poghosyan that the company
had to pay a bribe of $3 million to his close associate and MP Murad
Guloyanu. GGM refused to pay the bribe, and soon the Ministry revoked
the licenses of the two mines of the company in Armenia. GGM argued
that due to its refusal to pay a bribe, the Minister refused to issue
a license, for which GGC had all the rights, issued duplicates of
the license to mines owned and developed by GGM to other companies,
and generally obstructed GGM in the conduct of its business. "
Some observers believe that the writ issued by the court of New York
cannot be executed, because there is no bilateral intergovernmental
agreement between Armenia and the U.S. on recognition and enforcement
of judicial decisions. "As long as there is no decision of the
International Court of Arbitration on this case, this act cannot be
performed. The arbitration shall apply to the authorities of Armenia,
so that they recognize and accept the decision. But in the case of
the arrival of Vartan Aivazian in the U.S., he will be under the
jurisdiction of the U.S.," lawyer Ara Ghazaryan says.
However, the former Ambassador of Armenia to Canada, Ara Papian,
believes that the U.S. can apply to Interpol, which means that in
case of default of payment Aivazian can be arrested in 190 countries;
besides, the United States may apply to the Armenian authorities on
this matter.
In a recent interview with the electronic edition 1in.am, the CEO of
GGM, U.S. citizen Van Krikorian, did not rule out that the case may
be referred to the U.S. State Department; he also reported that his
lawyers could make such a decision.
Given the strict attitude of international institutions to the
protection of foreign investments, future developments are to be
expected. Systematic steps to protect their rights and the fight
against the phenomenon of corruption in Armenia "openly" speak in
favor of GGM. After 20 years of independence of Armenia there have
been many cases when foreign investors, including representatives of
the Armenian diaspora, experienced corruption pressure from local
government officials. But none of the foreign visitors came out to
fight openly, most preferred to arrange leaks to the media and to
leave Armenia. It is also clear that the leadership of GGM has well
thought through all the possible mechanisms, and the case is hardly
likely to come to a legal impasse.
Now, for the first time in the last 10 years, the interests of a
senior official (a deputy from the ruling party) are affected, and
this category hitherto enjoyed immunity and permissiveness in Armenia.
Now the government will have to choose between the relationship with
the U.S. and Vartan Aivazian.
http://vestnikkavkaza.net/analysis/politics/31751.html