INHERITED ARREARS: BROTHER OF FORMER SHIRAK REGIONAL ADMINISTRATOR LEAVES VILLAGE WITH 13 MILLION DEBT
Yeranuhi Soghoyan

2009/0 9/14 | 18:38

For years on end, it has been the custom of local community
leaders to rack up debts and then take flight, leaving the burden
of responsibility on their hapless successors. In the 2008 local
self-government elections, 104 community mayoralties were contested
out of 119 communities in Shirak Marz. As a result of the elections
results, some 28 communities witnessed a change in leadership.

"If we take a good hard look, it is the taxpayer who suffers;
especially the rural resident. There is no real penalty when community
leaders fail to collect the required amount of taxes," says Shirak
Regional Administration Finance Department head Hovsep Simonyan. He
cites the example of the former mayor of the community of Azatan who
accumulated some 21 million AMD in municipal debt. Then there is the
mayor of Akhourik who left some 18 million in debt to his successor
or the 24 million debt passed on in Metz Sepasar. It will be up to
the newly elected leaders in these and other communities to collect
enough in taxes to pay off the liabilities.

A new mayor was also elected in the community of Saratag in
2008. Former mayor Rostom Manoukyan, the brother of former regional
administrator Romik Manoukyan, left 13 million in debt to Misha
Ghrzoyan and took all the accounting paperwork with him as well
for the 6 years he was in office, including project expenditure
statements. Current Mayor Misha Ghrzoyan complains that, "Now the
regional administration is demanding the financial statements for
projects undertaken during those 6 years. But there is nothing here
to show."

Municipal accountant Silva Hakobyan backs up the mayor’s statement,
pointing out that whatever figures they had were taken by the regional
administration. A water pipe had been constructed during the six
year tenure of Rostom Manoukyan at a cost of 700,000 AMD. An equal
amount was allocated for road repair work as well, and 400,000 went
to repairs of the community health clinic. "I am at a loss to say
what really was accomplished with the money. All I can point to is
a cheap door that was hung at the clinic located on the first floor
of the municipality building. We also come across an expenditure of
40 million in the books but it beats me where the funds went to. All
in all, the finances are in a mess," Mrs. Hakobyan says.

"Where did the 40 million go?"

Mayor Ghrzoyan is also baffled. The 40 million was specifically
earmarked for a educational facility; or some type of musical, sport
and art school. "True, I inherited the job. But I wasn’t the one who
OK’d the expenditures. Thus, I can’t say where the 40 million was
spent. All I know is that at least one school could have been built
for that amount," Misha Ghrzoyan states.

The former mayor has become the owner of the old collective storage
building that was sold off at auction for 80,000 AMD. "That building is
at least worth $10,000. About 2-3 years ago I found out that the place
was up for auction and I decided to participate. Would you believe
it? I bought the place for 20,000 AMD. Later that same evening I got
a call from the former head of the Compulsory Enforcement Service who
requested that he return my check otherwise they’d fire him," recounts
Mayor Ghrzoyan. His auction receipt was returned and the transaction
was nullified. The building later went on auction again and this time
it was purchased by former Mayor Rostom Manoukyan for 80,000 AMD.

An employee at the Regional Administration commented that Saratak
residents are quite a thankless lot since they don’t appreciate
anything that former Regional Administrator Romik Manoukyan did for
the community where he was born. In Saratak, where half the residents
are relatives of the Manoukyan brothers, would appear to differ,
otherwise they wouldn’t have voted in Misha Ghrzoyan during the 2008
municipal elections. This was the response of most Saratak residents
"Hetq" spoke to in the village.

>>From November, 2008, till September 1, 2009, the Saratak Municipality
was able to collect 7.7 million of a 13 million AMD loan. Half the
village is heavily in debt. For example, Hovhannes Ayvazyan hasn’t
paid his land taxes since 1998. With penalties and interest, the
balance has grown to 1 million AMD and now Mr. Ayvazyan refuses to
pay at all. The mayor, having no other recourse, threatened to take
him to court and the man said, fine.

Over the phone, Hovhannes Ayvazyan told us that the former community
leaders were to blame. "They are the ones at fault for my being so deep
in debt today," he argued. "Even if I wanted to pay, where will I get
that kind of money? Let them make some kind of an offer otherwise I’ll
complain to the regional administration. Let them come and check if
I actually owe all that. I won’t pay. Let Ghrzoyan take me to court."

The pride of Saratak is the village school, also attended by children
from the neighboring community of Lousakert. The kindergarten also
accommodates 42 youngsters, allowing their parents to work in the
fields and perform other agricultural endeavors.

Public works program helps some

This year, 25 local families were given the opportunity to participate
in the "Public Works for Pay" program, for which they received monthly
wages of 45,000 AMD. The program tackled the village’s drinking water
problem and solved it. Resident Karapet Minasyan worked on the water
project and had no complaints. "The job lasted one month and they
paid me 2,200 AMD daily. For that one month 25 men from the village
had work. We did a good job and we now have water to drink from the
faucet. Imagine, for the past 15 years we had to carry water from
the well back home," Mr. Minasyan recounted.

We were told at the municipality that the "Public Works for Pay"
program gave a 1.5 million grant to the village and that the
municipality also kicked in 1.115 of its own money. What remains is
for the local roads to be repaired on the municipality’s paltry budget.

In addition to paying off the municipal debt, Mayor Ghrzoyan is
attempting to carry out some visible public work projects of his
own. For instance, the municipality has installed a system of local
street lights at a cost of 1.3 million from its own budget.

A general rule of thumb is that if the community mayor isn’t a
go-getter then the community suffers as a result. Local leaders
are changed only when the residents’ cup of patience has runneth
over. If the former mayor remembers anything related to the time he
was in office it is that he is owed some back pay. They told us at
the regional administration that many’s the time when a community
leader is voted out of office, only to turn up at their doorstep a
week later with a petition for back pay owed.

For example, there’s the case of the former mayor of Garnarij. He
threatened to go to court over back pay owed him. The case never made
it to the courts however. He went to his successor and demanded the
money. He got 300,000 for his troubles.