HAYPOST ASKS LAW-ENFORCEMENT BODIES TO INVESTIGATE ABUSES

ARMENPRESS
Aug 30 2007

YEREVAN, AUGUST 30, ARMENPRESS: HayPost (Armenian Post) said yesterday
it has lost more than AMD 2 billion in past years due to systemic
violation of vehicle fleet management procedures. It said it asked
police to investigate into potential fraud and embezzlement.

Based on the results of internal investigation into the management and
operations of the vehicle fleet department of HayPost, the company
revealed serious violations of working procedures by a large number
of employees and officials of HayPost supposedly involving fraud and
embezzlement, and inflicting significant losses on the company.

This concerns procurement and usage of petrol, usage of vehicles,
and repairs and maintenance of vehicles.

The company said in a press release that the system of fraud and
mismanagement has been apparently in place for at least the last
five years. The company applied to the law enforcement authorities
to investigate the matter and proceed accordingly.

This move is the result of the Dutch Trust Management and the
subsequent executive management changes of the company undertaken
in July, 2007, aimed at creating an image of impartial, transparent
accountable and reliable company.

"HayPost" CJSC is the national postal operator of the Republic
of Armenia operating through its 900 post offices throughout
Armenia. Today HayPost is undergoing a number of organizational and
operational changes with the purpose to ensure sustainable efficient
services and serve its customers more proficiently.

In compliance with the agreement signed on November 30, 2006 with
the Government of Armenia, the Dutch HayPost Trust Management B.V. is
currently responsible for the operational management of the Armenian
national postal operator with the objective to strengthen HayPost as
a viable and credible postal and financial service entity, meeting
all international postal and bank standards.

From: Emil Lazarian | Ararat NewsPress