STATE CONTROL SERVICE UNCOVERS VIOLATIONS IN COLLATERAL LOANS

Tert.am
16:08 ~U 21.12.09

State company Hayavtokayaran (which translates to "Armenian shuttle
bus station") has acquired a collateral loan at a value six times
less than the goods’ worth of actual $4 million USD from one of the
Armenian banks. This was uncovered as a result of inspections carried
out by the Control Service of the President of the Republic of Armenia.

Head of RA Control Service Hovhannes Hovsepyan, at a press conference
today, noted that Yerevan’s "Central" bus and mini-bus station,
with the aim of acquiring autobuses, has acquired a collateral loan
of $631,200 USD from the Armenian Development Bank.

According to Hovsepyan, even though buses have been acquired with those
funds, inspection of documents based on their economic operation has
revealed that the operation was not profitable.

Hovespyan noted that the Ministry of Transport and Communications,
commissioned by the president, has been obliged to withdraw "Central"
bus and mini-bus station’s loan.

Also uncovered was that all routes were serviced without the
corresponding route schematics. Apart from that, inspections have
revealed that 6 out of the 19 Hayavtokayaran bus stations have not been
operational, even though they have 15 permanent employees registered,
whose monthly salary comprises a total of $700,000 USD.