YEREVAN BUS TERMINAL MORTGAGED AT GIVEAWAY PRICE

news.am
Dec 21 2009
Armenia

This year, 15,000 Armenians citizens lodged complains with RA President
Serzh Sargsyan, with positive decisions made in 30% of cases, Head
of the Control Service of the President of the Republic of Armenia
Hovhannes Hovsepyan told reporters.

He reported that the Service has revealed numerous violations in
various sectors. Specifically, the RA Ministry of Transport and
Communication failed to prepare route plans. The gravest violation
involves the Yerevan bus terminal, which was mortgaged at a bank
for U.S. $600,000 allegedly for the purpose of new buses. However,
the money was not paid to the bank, and it was not until the Armenian
President issued an order that the Ministry paid half of the amount.

The rest is to be paid soon. Experts estimate the Yerevan bus terminal
at U.S. $5m.

The Service also revealed violations committed by the RA Ministry
of Education and Science. In its turn, the RA Ministry of Urban
Development deliberately inflated the prices for building materials.

The Service revealed 100m AMD violations as a result of six
inspections. Five officials were dismissed.

The Service also revealed violations committed by the State Property
Department. Specifically, the Department registered goods at a price
of 200m AMD lower than their real cost. A total of 250m AMD were
not paid as income taxes. Also, 120m AMD (50% of the rest) was not
collected. The Service also revealed 175m AMD violations.

The violations in civil aviation involved the licensing of airlines.

In some cases, licenses were issued to entities that had no airliners
at all. The Service also registered violations involving the servicing
of airliners. Hovsepyan also said that most of the airlines registered
in Armenia pay absurdly small taxes. He stated that the airlines
that fail to meet legal requirements will be closed. Hovsepyan also
reported violations in the work of the Expert Center of Armenia,
which illegally reduced the customs tariffs for imported cars.

The RA Ministry of Labor and Social Security has problems in
implementing a contract with the Alliance Company. Under the contract
the company was to provide housing to alumni of orphanages, but
was delaying the implementation. The Control Service took necessary
measures, and the company provided 25 alumni with housing and returned
125m AMD to the state budget.