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FACE CONTROL TO ACCESS GOVERNMENT FEEDER
A huge part of profits of oligarchs comes from state procurement. The
flow chart "state procurement - kickbacks - enrichment of oligarchs and
officials" brings a tangible part of circulation in Armenia allowing
a group of people to generate profit "legally" at the expense of
the state.
This flow of actions is applied not only to budget funds but also
international loans. In certain cases international organizations
become part of this system, others put forth the precondition of
compliance with the legal system.
Now the government has decided not to allow big companies which submit
small reports to participate in state procurement. Since breaches
can be found in every report, it is evident that this is a revision
of the list of eligibility to access the government's feeder.
Revision of this list started at the end of last year when Serzh
Sargsyan called a special conference on kickbacks. These processes
became more active after the revelations by Control Chamber, which
announced that 70% of government spending is at corruption risk. Serzh
Sargsyan dismissed this statement, saying that not 700 billion but
250-300 million drams are exposed to risk.
On August 1, the list of companies which will not be eligible for
participation in government procurement tenders will be released, and
it will become clear who remains close to the feeder. These companies
will be sent to drift freely, they will be told that they have grown
up enough to leave their "mother's breast". Go hunt on your own.
While it is clear that many companies may go bankrupt if they
are separated from the "breast" because the wealthy Armenians call
themselves big businessmen but their business is not built on the rules
of economic competition. Most of them lack business education, as well
as basic skills of management and marketing. They are used to making
money with the help of their access to state procurement contracts
and quotas, without competition and other economic "bullshit". In
the open sea they would not survive a day.
It is interesting to know who will be on the list. Will they be
"political opponents" or the oligarchy? Which of them has more
pretensions? Or maybe state procurement has been cut, so it is just
necessary to cut the list of companies as well. What will the guideline
of the government be? Will it introduce face control?
Naira Hayrumyan 16:17 10/07/2013 Story from Lragir.am News:
http://www.lragir.am/index/eng/0/economy/view/30424
A huge part of profits of oligarchs comes from state procurement. The
flow chart "state procurement - kickbacks - enrichment of oligarchs and
officials" brings a tangible part of circulation in Armenia allowing
a group of people to generate profit "legally" at the expense of
the state.
This flow of actions is applied not only to budget funds but also
international loans. In certain cases international organizations
become part of this system, others put forth the precondition of
compliance with the legal system.
Now the government has decided not to allow big companies which submit
small reports to participate in state procurement. Since breaches
can be found in every report, it is evident that this is a revision
of the list of eligibility to access the government's feeder.
Revision of this list started at the end of last year when Serzh
Sargsyan called a special conference on kickbacks. These processes
became more active after the revelations by Control Chamber, which
announced that 70% of government spending is at corruption risk. Serzh
Sargsyan dismissed this statement, saying that not 700 billion but
250-300 million drams are exposed to risk.
On August 1, the list of companies which will not be eligible for
participation in government procurement tenders will be released, and
it will become clear who remains close to the feeder. These companies
will be sent to drift freely, they will be told that they have grown
up enough to leave their "mother's breast". Go hunt on your own.
While it is clear that many companies may go bankrupt if they
are separated from the "breast" because the wealthy Armenians call
themselves big businessmen but their business is not built on the rules
of economic competition. Most of them lack business education, as well
as basic skills of management and marketing. They are used to making
money with the help of their access to state procurement contracts
and quotas, without competition and other economic "bullshit". In
the open sea they would not survive a day.
It is interesting to know who will be on the list. Will they be
"political opponents" or the oligarchy? Which of them has more
pretensions? Or maybe state procurement has been cut, so it is just
necessary to cut the list of companies as well. What will the guideline
of the government be? Will it introduce face control?
Naira Hayrumyan 16:17 10/07/2013 Story from Lragir.am News:
http://www.lragir.am/index/eng/0/economy/view/30424