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========================= ================================================
S eptember 18, 2009

1. Take Two: Government succeeds in pushing controversial `Tax Agent’
bill through parliament

2.== ==03/01: Commission gives report to National Assembly

3. ==`Who are we and where do we go?’ President Sargsyan meets
party
leaders on protocols issue

==4.== Hit Below the Belt: Motorists question why police not required
to buckle up 5. ==Armenia-Turkey: Will economic dividends be able to spur the
protocol ratification?

6.== Awaiting Word: Armenians deserve a better explanation of Heritage
breakdown=
7. ==The Sound of Music: Open Music Fest in Yerevan is appreciated
both by musicians and audience

8. Sport: Mika step up pressure on Pyunik in championship race

================================================= ========================1. Take Two: Government succeeds in pushing controversial `Tax Agent’ bill
through parliament
By Georg Khachaturyan

Armenian parliamentarians this week voted to adopt in the first (and main)
reading a controversial government-drafted bill that empowers tax
authorities to deploy agents in large companies suspected of tax evasion.

The bill met strong opposition in the National Assembly when first submitted
in May and its critics included not only the opposition minority but also
many parliamentarians with extensive business interests.

After amending the draft legislation withdrawn in July, the government
resubmitted it to the autumn session of parliament and this time secured 73
votes for its passage against 23 nays and one abstention.

Under the measure, special representatives of the tax body are allowed
unrestricted access to large companies’ financial documentation and other
business operations with the aim of ensuring these companies do not evade
taxes. Earlier, large businesses and lobbyists of their interests in
parliament insisted that the measure would only create more corruption risks
and allow outsiders access to corporate secrets.

Presenting the amended bill in parliament before the vote, Deputy Finance
Minister Suren Karayan said all proposals made by the parliamentary
commission on economic issues had been considered when amending the bill.
Dwelling on the fundamental differences between the newly introduced bill
and the previous one, Karayan said that it is now stipulated that
representatives of the tax service will be empowered to control the basic
volumes of production, sales prices and related documents only at the
delivery of the finished commodity. `In other words, we will not be
interfering with the production process. A tax representative will not have
access to production secrets or the production process,’ said the keynote
speaker.

Also, according to Karayan, a list of companies to where tax representatives
will be assigned has also been specified.

Tax bodies will be entitled to assign their representatives only to
companies whose annual amount of business exceeds 4 billion drams (roughly
$10.7 million) and who employ a staff of more than 500.

Remarkably, under the amendments, tax representatives are not entitled to
visit wine and brandy productions, which the government considers to be
traditional branches of the Armenian economy.

The measure sought by the government for several months reflects an
increasing need to crack down on unscrupulous taxpayers to ensure a proper
flow of budget revenues amid Armenia’s worst economic decline in years and
challenges presented by the continuing global recession.

In summer the draft legislation was criticized particularly by members of
the parliamentary faction of the pro-establishment Prosperous Armenia Party
led by multimillionaire business owner Gagik Tsarukyan. The faction’s
representative Vardan Bostanjyan then, in particular, would claim that the
tax package contradicted `healthy logic’, `liberal psychology’ and
even the
Constitution.

Tsarukyan, however, opted out of the vote on the tax package. His spokesman
Khachik Galstyan explained that if Tsarukyan voted against the bill, he
would have become a target for criticism. `As for other deputies of the
Prosperous Armenia faction, they were free to take a vote of conscience,’ he
stressed.

Meanwhile, Vahan Hovhannisyan, a member of parliament from the Armenian
Revolutionary Federation (Dashnaktsutyun), said the measure would spare the
importer but hit the producer.

`We want to put an end to illicit business, but this mechanism will enable
those in the shadow only to consolidate their place,’ said Hovhannisyan,
asserting that this way large taxpayers will only become `political
hostages’, especially during elections.

====================================== ===================================
2. 03/01: Commission gives report to National Assembly

By Gayane Lazarian
ArmeniaNow reporter

The Ad Hoc Commission investigating the violent events of March 1, 2008 in
which 10 people died in Yerevan riots, submitted its final report to the
National Assembly Thursday (September 14).

The report essentially exonerates law enforcement, though it is critical of
the use of the controversial riot gun, the `Cherymoukha-7′, which was
responsible for three of the deaths.

`The Commission has not revealed the cause of death of the 10 victims,’ said
Commission chairman Samvel Nikoyan. `A total of 221 people were injured
during those events, and up to now even the reasons of their being injured
are not clarified.’

While the report was being presented families of victims gathered outside
shouting: `Where are the killers?’

`We did not expect such a disgrace,’ said Seda Hovhannisyan, mother of
Gor
Kloyan, one of the victims. `Why aren’t the police officers who used the
`Cheryomukha-7′ revealed? I want to know who killed my son.’

The report blames the opposition for `destabilizing the country’.

`It was evident that the over tensed situation needed discharging,’ says the
report, adding that matters could have been settled peacefully `by means
of
finding tolerance between the authorities and the opposition.’

==================================== =====================================
3. `Who are we and where do we go?’ President Sargsyan meets party
leaders on protocols issue

By Aris Ghazinyan
ArmeniaNow reporter

Leaders of 52 political parties of Armenia were summoned yesterday by
President Serzh Sargsyan for a round table discussion on the development of
Armenian-Turkish relations.

Sargsyan addressed the party leaders without emotion in talking of the
controversial issues that have been raised since the infamous `protocols’ on
Armenia-Turkey relations surfaced three weeks ago.

`Where are we?’ asked Sargsyan rhetorically addressing the participants and
answered the question himself. `We are in a stage of discussing, signing
and
possible ratification of the initialed documents. What do we have? We have
two initialed documents and an active process. Where are we going? As for me,
I am going to solve issues. If in order to solve a certain issue we have
closed a certain door – please, show me.’

`If we really want to normalize relations – let’s understand who is going to
do what, and generally, what kind of work we will be doing together. To me,
that’s the most important thing,’ said the president.

Sargsyan had invited leaders of 64 political parties of Armenia. Radical
opposition, namely, Armenian National Congress, refused to participate in
the discussions, and so did the Heritage Party

The discussions were closed-doors with only a few minutes of protocol photo
shooting allowed. What form did the discussions take, is hard to say. To
some extent some judgment can be made based on what one of the participants
– Armen Rustamyan, representative of the Armenian Revolutionary Federation
Dashanksutyun’s Executive Council of Armenia – said right after the end of
the event: `It has become clear that no amendments will be made to the
Armenian-Turkish protocols prior to signing them ‘

Open hearings of the issue in the National Assembly of Armenia are schedules
to start on September 22.

============================================= ==============================
4. Hit Below the Belt: Motorists question why police not required to buckle
up

By Sara Khojoyan=ArmeniaNow reporter

Since moving to enforce in earnest the long-existing law on wearing
seatbelts while driving, traffic police in Armenia have constantly been
under challenge for not applying this rule to their own staff.

Senior traffic police officials on television and through various press
conferences have repeatedly stated that drivers and crew of police and
ambulance cars, as well as fire-engines, rescue service and other emergency
vehicles are allowed not to wear seatbelts while on duty due to `special
circumstances that their jobs involve.’ Motorists, however, appear
unconvinced, as do some foreigners and Diaspora Armenians visiting the
country and seeing how different the law on road safety is read `here and
there’.

No wonder that media questions challenging this reality pop up every time a
senior police representative holds a press conference on the subject.

Police crackdown on motorists neglecting the use of seatbelts began in
August shortly after Prime Minister Tigran Sargsyan called for `zero
tolerance’ towards drivers and passengers failing to buckle up.

Weeks after the introduction of stepped up controls over seatbelt use, the
law is still being strictly enforced on the roads across Armenia.

But no matter how successful the government’s road safety strategy has been
so far, some drivers still do not conceal their dissatisfaction with the
`novelty’.

Head of the Road Patrol Service Department of the Police Norik Sargsyan says
that sanctions used during the period of only one month have already led
drivers to appreciate the need and reasons for wearing seatbelts while
driving.

`It is very difficult to see a driver who would not wear a seatbelt on the
road today,’ says Sargsyan. He adds that inspectors do not fail to reveal
seatbelt rule violations even if cars have tinted windows.

The Road Patrol Service reported 1,646 violations connected with not wearing
a seatbelt in the period between September 1 and 10 (ten days traditionally
observed as a period of traffic safety vigil in Armenia connected with the
start of the school year).

Sargsyan does not accept the complaints often heard from drivers and says
wearing seatbelts is primarily for drivers’ own safety.

`Even I wear a seatbelt and follow the rules,’ says the police colonel.

But among those drivers who consider the measure superfluous in urban
conditions where speed limits are set low, there are also those who demand
equality.

`Why should I wear a seatbelt and the patrol inspector or the road policeman
should not? On top of all, they chuckle at you as if saying – eat your heart
out,’ says Karen Gevorgyan, a driver from Yerevan.

Police colonel Sargsyan explains: The drivers and passengers of a vehicle
carrying out an operative service as well as marked units with emergency
lights are allowed not to wear seatbelts by law.

`Road police officers are allowed to drive without wearing seatbelts only in
residential areas and while on duty, whereas on highways even they must wear
seatbelts,’ he adds.

Head of the Achilles Union for the Defense of Drivers’ Rights Eduard
Hovhannisyan is glad that drivers and passengers in Armenia finally wear
seatbelts, even though under the threat of a fine of some $13 for every
`unfastened’ person.

While Hovhannisyan agrees that allowing `corresponding bodies conducting
operative service’ not to wear seatbelts is an inequality, he still says
it
is insufficient ground for drivers to ignore this rule.

`If an inspector does not wear a seatbelt, it doesn’t mean that the driver
should follow his example. It is supposed that at any moment those doing
operative work may have to act in a way to save other people’s lives,’
he
says. `But we find that police, too, must wear seatbelts because their life
is also precious to us. In this sense, we find that this inequality must be
redressed through introducing a change in the law.’

================================================= ========================
5. Armenia-Turkey: Will economic dividends be able to spur the protocol
ratification?

Analysis by Aris Ghazinyan
ArmeniaNow reporter

The second half of 2009 promises to become one of the most tense periods of
modern Armenian history, following the publication on August 31st of the
Armenian-Turkish Protocols providing for normalization of bilateral ties.

In the protocols Turkey has set preconditions, according to which Yerevan
has to recognize Azerbaijan’s territorial integrity as well as the current
Armenian-Turkish state border.

It is yet unknown whether the protocols will be ratified by the Armenian
Parliament. It is obvious, however, that there is a promise of certain
economic benefits.

In any case, the Armenian side seems to have taken up the process of
purchasing railroad stock for the supposedly unblocked section.

Recently, Regnum information agency reported that `a train building plant in
Poznan’, Poland, will be providing Armenia with three freight trains with
engines’.

It was also reported that Armenia’s ambassador to Poland had already visited
the plant, although the South-Caucasian Railroad LLC did not confirm this
piece of information.

RA Minister of Transportation and Communication Gurgen Sargsyan says he does
not possess any such information about a possible purchase of trains from
Poland, meanwhile Polish newspapers keep bringing up the topic.

Wyborcza newspaper reports the details of Armenian Ambassador to Poland
Ashot Galoyan’s visit to Poznan’: `We are talking about the purchase
of 120
freight wagons by Armenia. It is with this deal that the passenger train
building plant is hoping to overcome the crisis the firm is currently in.

Yet in September mass reduction of about 530 employees at the plant was
planned, however, the Armenian Ambassador’s visit must have given a hope
for
a new order. Polish newspapers write that the ambassador introduced himself
as a mediator on behalf of one of major companies in Armenia.

`By opening the Armenian-Turkish border Armenia will gain direct border with
Europe,’ says RA Minister of Economy Nerses Yeritsyan. `Turkey has
diversified enough economy and is undergoing major technological
transformation. Turkey also has good communication with Europe and Asia, and
is of great interest to Armenian businesses as a territory. If our
entrepreneurs operate with initiative, they will secure access and a place
in Asian, Middle Eastern and European markets.’

Head of the RA National Assembly’s Standing Committee on Economic Issues
Vardan Ayvazyan, too, shared his thoughts on the perspectives of Armenia’s
economic development in case of opening the border.

`The opening of the border can lead to 4 percent growth of GDP, 17.7 percent
of export and 13 percent of import,’ says Ayvazyan.

Transport Minister Sargsyan, in his turn, stated that `a railway tunnel is
being built passing under Bosporus Strait to be completed by 2011 allowing
transportation of cargo from China through Armenia and Turkey to Europe .’

This illustrates a generally positive and optimistic approach of Armenian
officials to the perspective of unblocking the Armenian-Turkish border and
establishing bilateral relations.

Moreover, quite recently Bloomberg spread information that very soon Armenia
will be able to replace Georgia as a transit country because of the growing
instability of the political situation in Georgia.
Turkish newspaper Star, with reference to its own sources, writes that
`Turkey can support Armenia’s entry into NABUCCO project based on improved
relations between the two countries.’

In the nearest future the controversy within the Armenian society on the
ways, mechanisms and principles of normalization of the bilateral relations
will reach its culmination phase.

Short-term blocks might be formed revealing standpoints on this most
important issue.

`Turkey is trying to present its readiness to open the border as `an act of
free will’, but that’s absolutely not true,’ says political analyst Armen
Avagyan. `Turkey has been blocking Armenia for more than 15 years, and a
blockade is a type of war strategy. Ankara is, practically, at war with
Yerevan, meanwhile the international community is not duly informed on this
issue. ‘

This week a series of events was launched by the Armenian Revolutionary
Federation Dashnaktsutyun aimed against the adoption of the Protocols by the
Armenian Parliament as they appear in the draft.

According to the organizers of this protest, Armenia has to take several
highly important issues onto the international political platform. For
example: the blockade of Armenian communication – an unprecedented
phenomenon on the whole territory of the European Union, as two rightful
members of EU are blocking the third rightful member of EU. Unblocking the
Armenian-Turkish border cannot be considered as an act of free will if
Turkey does not compensate the cumulative damage intentionally caused to
Armenia during the whole period of the blockade.

======================================= =====================================
6. Awaiting Word: Armenians deserve a better explanation of Heritage
breakdown

The apparent unraveling of the Heritage party is met with profound
disappointment.

Armenia has long needed a party driven by public service and the ideal of
common representation rather than by the transparent greed and hunger for
power that too often characterizes law making and leadership here. Heritage
has been the welcomed exception.

Heritage, since winning its seven mandates to the National Assembly in 2007,
has – typical of opposition parties – had limited impact on the voting
tote
board inside parliament, but considerable and necessary influence on public
discourse. Best of all, perhaps, the party has demonstrated rare civic
servitude.

When anger boiled on Yerevan streets on March 1, 2008 and as clubs were
distributed and weapons loaded, Heritage MP Anahit Bakhshyan stood staunch
still with mercenary thugs in balaclava in her face and raving would-be
revolutionaries at her back. Stood there, she did, a teacher in a former
life, with a lesson that to serve may mean to sacrifice. It was a lesson
painfully taught the future deputy on October 27, 1999, when her husband
(Yuri, then Deputy Parliament Speaker) was among those shot dead in
Parliament by terrorists no less angry than the crowd surrounding Anahit
Bakhshyan March 1 last year.

Dwarfed by red-faced men, the Heritage deputy – one of three women
representing her party in a parliament that has a total of only 12 females
–
stood to appeal for calm on a day that would rebuke her.

While opposition leader Levon Ter-Petrosyan hid behind `house arrest’ at his
mansion on the Hrazdan Gorge, Heritage rep Bakhshyan along with colleagues
Larissa Alaverdyan, Zaruhi Postanjyan, Stepan Safaryan and Armen Martirosyan
made repeated appearances at the flash point of unrest near Yerevan City
Hall. Martirosyan, in fact, suffered a knife wound, while trying to protect
a policeman from an oppositionist sympathizer’s attack.

And while fool-hardy Ter-Petrosyan sycophant Nikol Pashinyan rallied the
crowd for battle that ridiculous day, Heritage deputies represented the
voice of reason – a foreshadowing of sorts of the centrist position it would
edge toward.

It is a position that should not be construed as neutral – as seen when
Postanjyan’s fight for the release of March 1 political prisoners was so
aggressive it earned her the opportunity to be called `whore’ by those
who
resented her acquisition of Azeri signatures on a proposal she proffered at
the Parliamentary Assembly of the Council of Europe in Strasbourg.

In matters of civil society, of representation by the people, of intelligent
debate versus hyperbolic faux patriotism, Heritage has been a beacon . . .

Until now, when whatever foundation for change Heritage has laid for itself
and for Armenia looks destined to crumble under in-party bickering, and the
appearance of battle fatigue by its founder Raffi Hovannisian.

When, on September 7, Hovannisian’s fellow party members confirmed his
resignation from parliament, it was characterized as a protest over
Armenia’s foreign policy toward Turkey that, the former Minister of Foreign
Affairs argues, insults the perished lives of Armenian Genocide victims, of
which he is a descendent.

But if Hovannisian’s position of principle should require such a drastic
denouncement of the protocols of rapprochement, what of the remaining
Heritage deputies, who have maintained their mandates?

After nearly 20 years of leadership in the struggle to make Armenia
democratic, Raffi Hovannisian need not be called upon to explain himself. He
has earned a recess, if not retirement, from the grind of trying to do
something civically meaningful against the depressing odds stacked in favor
of cronyism and personal enrichment.

Still, reassurance from the Big Fella is awaited. And it is warranted.

Heritage, for many voters and sympathizers in Armenia embodied `a new word’
in Armenian politics. Hovannisian may have thrust them into major-league
politics solely due to his own political capital, reputation and charisma,
but the seven-member Heritage faction in parliament soon became a real
phenomenon due to their own hard work.

Heritage is the smallest, but undoubtedly most active faction and its work
has gone well beyond the parliament corridors.

It is work that is needed, not for its politics, but for its principle.

Still.

Disappointment over the Heritage meltdown leaves reason to consider this:

Why is it so hard in Armenia’s political culture to build modern parties
based on principles and policies that are rooted not in past divisions and
disputes but instead are forward looking and focused on resolving
present-day problems for the sake of a better future for the country’s
children?

Who, if any, is considering what Armenia should look like tomorrow, rather
than focusing on this or that historical grievance?

What happened to the sense of hope and optimism that was so prevalent
immediately after the Soviet collapse? Did it all wash out in just 17 years?
Armenians have faced harder obstacles and overcome them but nobody appears
ready to think outside their bunker.

Some have earned the right to drop their heads. But Armenia desperately
needs those who will lift their tired eyes to the horizon.

We had hoped Heritage might represent the latter.

======================================== =================================
7. ==The Sound of Music: Open Music Fest in Yerevan is appreciated both by
musicians and audienceBy Karine Ionesyan
ArmeniaNow reporter

As he looks forward to Monday’s grand finale of the inaugural Open Music
Fest, creator of the seven-week series of concerts Aram Gharabekian can look
back on a singular achievement.

Through 20 concerts completed as of Monday night’s Boxhead Ensemble
performance, about 16,000 attended the al fresco music, buying tickets
priced at from 2000-7000 dram ($4.50-$20).

Launched July 30, OMF brought together more than 150 Armenian and foreign
musicians to the stage at the Moscow Cinema Open-air Theater (capacity 800).

`This was the first festival that created a serious and healthy forum for
artists, and our reality, in fact, lacked such an event,’ says Gharabekian,
Art Director and principle conductor of the National Chamber Orchestra of
Armenia.

`Musicians always had a reason to meet, but they never had a chance to
cooperate in such a way. As a result, several musicians have already thought
about the creation of new cooperation.’

According to the maestro, one unique quality of the festival was its
opportunity to unite disparate genres. Over the course of OMF jazz,
classical, avante garde, folk, improvisational and rock have enjoyed the
spotlight and often mingled.

Gharabekian singled out the performance of jazz pianist Tigran Hamasyan as
an example of the series’ value. Hamasyan, who lives in the United States is
winner of the Thelonious Monk Jazz Competition in 2006.

`Hamsyan had not had a concert in the homeland for a long time, and it is
very important for him to be known also here, in Armenia, as he is
considered to be a phenomenon abroad.’

Mezzo soprano Anna Mayilyan, who participated in two programs, including a
night of improvisation with popular jazz-fusion band Katuner, says that OMF
brought a needed venue to the Armenian music scene as `the existence of open
music concerts creates a warmer and more natural atmosphere.’

Creating the atmosphere was not, however, a natural occurrence. The theater
– built in the 1930s (and renovated in 2000) – had never been used for
a
music performance, and held its last outdoor cinema in 2002.

Sitting just off busy Tumanian Street and surrounded by office buildings and
residences, Gharabekian faced a particular challenge in creating an
acceptable, to say nothing of exceptional, acoustic environment. He called
on the services of Stage Tech Company, a German sound company that had
production experience that included the Olympic Games in Athens in 2004.

Customized sound equipment was purchased that Gharabekian says`will not be
covered with dust’ following the completion of Open Music Fest. During their
time here, the German sound specialists held training sessions for Armenian
colleagues, teaching them how to get optimum use from the equipment.

Gharabekian is also pleased that OMF has been a good opportunity for
children to gain exposure to a variety of music genres. (In addition to
those attending with parents, children from different orphanages and
provinces were also brought to concerts.)

`Even though they are young, they learn lessons form those concerts,
assuring that this generation is started out on a good path,’ the maestro
says.

About 35 sponsors and partners participated among which were major
contributions from
VIVA CELL MTS, Converse Bank, HayPost, USA Embassy, RA Ministry of Culture,
Jinishian Foundation, Hovig Kurkjian, Boghossian Foundation and others.

According to OMF organizers, cost of the series was mostly covered (60
percent) by major donors among which 80 percent were local contributions.

================================================= ========================
8. Sport: Mika step up pressure on Pyunik in championship race

By Suren Musayelyan

Soccer

FC Mika took an important step in Armenia’s soccer premier league this week
to stay in contention for the championship title this season. In a Round 21
league game, the Yerevan-based contender beat longtime champion and current
leader Pyunik 2-0 and closed the latter’s advantage to 3 points. With
exactly three quarters of the championship already played, Pyunik have 47
points, followed Mika with 44.

Ulis fell behind with 40 points after being held by bottom side Ararat to a
1-1 draw.

In other Round 21 matches played September 12-14, Banants beat Kilikia 5-0
and Shirak from Gyumri beat Kapan’s Gandzasar 2-1.

In the next round scheduled for this weekend, Pyunik will be visitors at
Banants’, Mika will host Gandzasar, Ulis and Ararat will entertain Kilikia
and Shirak, respectively.

In the league table, Pyunik, Mika and Ulis are followed by Banats (35
points), Gandzasar (29), Shirak (19), Kilikia (15) and Ararat (8).

Meanwhile, Armenia’s national women’s team (coached by Samvel Adamyan)
will
play against Finland in a World Cup 2011 qualifier on Saturday (Sept. 19).
The Football Federation of Armenia reported that the match will take place
at Hrazdan Stadium. Kickoff time: 5.00 pm.

(Source: FFA)

Boxing

Armenia-born WBC and WBA super-flyweight champion Vic Darchinyan (32-2-1, 26
KOs) will stage a mandatory defense of his titles in the United States at
the end of this year, reports the Armenian sport portal Sportinfo.am,
quoting Fightnews.com.

The December 12 bout against Mexican Tomas Rojas (31-11-1, 22 KOs) will be
the 33-year-old Armenian’s first fight since his unsuccessful challenge
against Ghana’s Joseph Agbeko for the IBF bantamweight title in July, in
which he reportedly sustained injuries leading to 44 stitches.

Darchinyan’s manager told a newspaper in Sydney, Australia, where the
Armenian has been based during his professional career, that the scheduling
of the fight for December would allow Darchinyan sufficient time for his
stitches to heal.

According to Fightnews.com, Darchinyan has already been forced to relinquish
the IBF version of the super-flyweight title as they required a mandatory
defense in October which his team felt was too soon for the wounds to heal.

Meanwhile, Darchinyan’s next opponent, 29-year-old Rojas, is on a winning
run of five fights after he was stopped in six rounds by Jorge Arce at Las
Vegas in September 2007. Rojas comes off a ninth round stoppage of Everado
Morales in Mexico in July for the WBC interim super-flyweight title.

(Sources: Sportinfo.am; Fightnews.com)

Ice-Hockey

Armenian Ice-Hockey Federation President Karen Khachatryan (41) was killed
in a road accident in Turkey on September 15, reports Armenian online paper
Tert.am.

The accident reportedly happened near the town of Erzincan in northeastern
Turkey where a Toyota SUV collided with a passenger bus. All passengers in
the SUV, including three citizens of Armenia and three citizens of Georgia
were killed instantly.

Tert.am quotes Armenian Foreign Ministry spokesman Tigran Balayan as
confirming that Khachatryan’s wife (40) and son (18) traveling with him are
among the killed, as well as President of the Georgian Ice-Hockey Federation
Denis Davydov (40).