Sanitek can’t pay salaries to its employees because of financial difficulties

ARKA, Armenia
Sept 11 2019

YEREVAN, September 11. /ARKA/. Sanitek, waste management company operating in Yerevan, released yesterday a statement saying it faces a financial crisis and therefore paid no salaries for August to its employees. Responding to the city municipality's statement that it has transferred AMD 165.34 million to Sanitek for August, the latter said that the municipality had to transfer about AMD 430 million for August.  

As a rule, the municipality pays twice a month. According to Sanitek, the city authorities transferred AMD 141,831,000 in the first part of August, underpaying AMD 69,546,191 as fine, but transferred nothing for the second half of the month.

More than that – Sanitek says the municipality didn't accept the invoices and performance acts submitted by the company.

In its press release, Sanitek apologizes to its employees for the failure to pay their salaries.

For several months, residents of Yerevan have been complaining over the failure of Sanitek’s Armenian division to collect garbage throughout the city.

Earlier, Yerevan Mayor Hayk Marutyan publicly expressed displeasure at the work of the Sanitek company, stressing that Yerevan residents will no longer tolerate its ineffective work.

In the spring of this year, Sanitek was twice fined for failing to fulfill its contractual obligations in the amount of 13 million drams (more than $26,800) and 26 million drams ($54,100).

Sanitek Armenia, the branch of Sanitek International Group –a multinational waste management company headquartered in Lebanon, was chosen by the Yerevan Municipality to handle sanitary cleaning and waste recycling of the capital city and until recently it was a monopolist in this business. ($1 – AMD 476.35). -0–