ACCORDING TO CHAIRMAN OF AUDIT CHAMBER, SOME OF REVEALED VIOLATIONS RESULT FROM LEGISLATIVE GAPS

NOYAN TAPAN
SEPTEMBER 24, 2009
YEREVAN

YEREVAN, SEPTEMBER 24, NOYAN TAPAN. At the September 23 sitting,
the Board of the RA Audit Chamber approved the current reports on
the results of the checks on the use of state budget allocations
and collection of budget revenues in 2007-2008 at the Ministries of
Finance, Justice, Sport and Youth Affairs, and the Main Department
of Civil Aviation, as well as the checks on the implementation of the
RA Social Investment Fund’s third program financed by the World Bank.

Audit Chamber Chairman Ishkhan Zakarian said at a press confrence
following the sitting that some upward distortions and violations were
revealed in these cases, like in any other construction work, but the
"positive thing" is that considerable part of the sums to be paid back
(in some cases, the whole sum) has been paid back to the state budget,
while the rest will be transferred later – according to an established
schedule. Besides, two persons responsible for construction in the
civil aviation sector were dismissed. I. Zakarian pointed out that
they would like the Audit Chamber to be an assisting rather than a
punitive body.

In his words, they also revealed shortcomings of other kind, including
violations that propably result from imperfect laws and legilsative
gaps. In particular, the checks at the Ministry of Finance found
violations in the licencing of casinos and prize games and the poor
control of the activities of economic entities in this sector. For
example, 42 of the 102 licensed gaming-tables were presented as
actually operating, whereas a fixed monthly payment of 4 million drams
is to be made for each of them. The Audit Chamber proposed clarifying
the legislation in order to rule our the possible corruption risks
and underpays. Some shortcomings were also disclosed in the licensing
of audit activity and the supervision of the sale and import of items
made of precious metals and stones.

The Audit Chamber revealed a serious problem related to a legislative
gap regarding civil aviation. In Armenia, the registration of airlines
is free, which should be eliminated. As a result, out of the 12
airlines registered, only three actually operate in Armenia, whereas
the 9 other companies work in the UAE and some African countries. These
9 airlines paid taxes of a total of 37.2 million drams in 2007-2008,
whereas Armairo company operating one helicopter in Armenia paid 41.3
million drams.