ARTUR BAGHDASARIAN DOES NOT SUPPORT APPROACH THAT EVERYTHING WAS LEGAL DURING PRIVATIZATION PROCESS

Noyan Tapan
Apr 13 2006

YEREVAN, APRIL 13, NOYAN TAPAN. The presentation of the report on
implementation of the 2001-2003 state property privatization program
was completed at the RA National Assembly on April 12. The report,
which also includes the privatization process in 2004, will be voted
on April 13. RA NA Speaker Artur Baghdasarian noted in his speech that
he does not support the approach that everything was legal during the
privatization process. According to him, it is also evident from the
facts registered in the annual report of the Control Chamber (CC) to
be discussed in the parliament soon. He promised to send the materials
containing these facts to the Office of the RA Prosecutor General after
the discussion of the CC report. Particularly, the CC has revealed that
the 3 thousand sq.m construction at 67 Hanrapetutyan Str. Yerevan
was sold for $65 a square meter, whereas the market price is no
less than $1,200; the Nairi Cinema – for $40 a sq.m. (market price –
$1,000-1,200), while a 1,840 sq.m construction at the intersection
of Bagramian Avenue and Aygedzor Street was sold for only $50,000,
that is, for $30 a sq.m. (market price – $900-1,000). It was found
as a result of a monitoring of about 200 privatized companies that
only 27 such companies have assumed investment obligations. According
to A. Baghdasarian, most of the companies were privatized by direct
sale at a previosly known price. He also pointed out the absence
of necessary state control over investment obligations assumed
by enterprises. The monitoring of nearly 100 enterprises allowed
the Control Chamber to reveal that obligations of only 37 mln USD
were fulfiled out of a total of 140 mln USD. In his words, while
“selling buildings with one hand”, at the same time the state has to
rent other buildings to ensure the activities of some state bodies,
and the state budget envisages allocations for this purpose.