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  • Single Source Procurements: Taxpayers Assist Business Interests Of F

    SINGLE SOURCE PROCUREMENTS: TAXPAYERS ASSIST BUSINESS INTERESTS OF FORMER MINISTER OF HEALTH'S SONS

    Tatev Khachatryan

    14:19, March 12, 2015

    The state budget has become the main source for government officials
    and their relatives to develop their businesses. Oftentimes, companies
    that win state procurement tenders are linked, in one way or another,
    to various government officials.

    63 million AMD contract goes to company owned by son of former Armenian
    health minister

    Bianco Dental Clinic, the company owned by Hrant Dumanyan, son of
    former Armenian Minister of Health Derenik Dumanyan was awarded
    the contract based on the following stipulation of the "Law on
    Procurements":

    Article 23. Conditions for use of single-source procurement

    Procurement can be single-source, if: a) the goods, works or
    services to be procured can be purchased only from one source, due
    to copyright and adjacent rights, lack of competition or license. b)
    Owing to an emergency or contingency, there is an urgent need for
    procurement and, in terms of time, it is impossible to use another
    form of procurement, provided, this need was impossible to predict
    as well as, if the procurement item is not covered in signed periodic
    procurement contracts.

    Bianco was founded in May 2011 and is solely owned by Hrant Dumanyan.

    The clinic's director is Kamsar Kostanyan, a relative of Derenik
    Dumanyan's wife Anahit. Artour Dumanyan, another son of Derenik
    Dumanyan who currently serves as an assistant to the head of personnel
    of the Ministry of Health's Food Safety Service, is also affiliated
    with Bianco.

    The 2011 single source procurements made by the Ministry Of Health
    are missing from the government's e-gov.am website. There is data for
    only three single source procurement contracts that the ministry made
    in 2012.

    On February 8, 2013, the Ministry of Health and Bianco signed two
    contracts with Bianco - one for 3.176 million AMD and another for
    17 million. Both were for out of hospital services. On February 18,
    2014, two contracts totaling 21.7 million AMD were signed for the
    same services.

    Contracts were signed with Bianco both when Derenik Dumanyan served
    as minister and afterwards.

    On February 2 of this year two single source contracts totaling
    21 million AMD were signed with Bianco. Thus, from 2013 - 2015
    the government signed six contracts totaling 63 million AMD with
    Bianco Ltd.

    Gurgen Dumanyan's animal and pharmacy businesses

    Gurgen Dumanyan

    Gurgen Dumanyan, the eldest son of Derenik Dumanyan, currently serves
    as the first deputy to Davit Harutyunyan, the Armenian government's
    chief of staff. Gurgen Dumanyan owns 10% in the Fauna Zoological Garden
    established in 2005. The other 70% is owned by Artour Khachatryan,
    a person involved in Armenia's trade of endangered animals that Hetq
    has extensively covered.

    As stated in its charter, Fauna is engaged in the retail trade of
    mainly foodstuffs, beverages and tobacco products in non-specialized
    stores.

    Gurgen Dumanyan, a former director of the Ministry of Health's "Health
    Programs Implementation Office", also owns shares in a number of
    companies temporarily not operating.

    The tourism sector

    Derenik Dumanyan's family also has its fingers in the tourism sector.

    Prior to 2012, his wife Anahit owned 25% in Yan Voyage. This company
    signed an air services contract with the Procurement Assistance Center
    SNCO in October 2013.

    The company was founded in 2010 and operates as a tour operator
    in addition to offering real estate purchasing services in Armenia
    and overseas.

    http://hetq.am/eng/news/58968/single-source-procurements-taxpayers-assist-business-interests-of-former-minister-of-healths-sons.html

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