Thursday, Armenian Referendum To Cost Over $7 Million • Astghik Bedevian Armenia -- Prime Minister Nikol Pashinian holds a cabinet meeting in Yerevan, . The Armenian government allocated on Thursday about 3.5 billion drams ($7.3 million) for the conduct of the upcoming referendum on its controversial proposal to replace most members of the country’s Constitutional Court. Prime Minister Nikol Pashinian insisted that the funding does not constitute a waste of scarce public resources and that it will actually benefit the Armenian economy. Armenians will vote on April 5 on draft constitutional amendments that would end the powers of seven of the nine Constitutional Court judges who have for months been under strong government pressure to resign. Pashinian has repeatedly accused them -- and Constitutional Court Chairman Hrayr Tovmasian in particular -- of maintaining ties to the “corrupt former regime” and impeding judicial reforms. Pashinian’s political opponents and other critic say that he is simply seeking to gain control over Armenia’s highest court. Some of them also point to what they see as the exorbitant cost of the referendum. Pashinian dismissed these arguments as his cabinet allocated the funding at a weekly session in Yerevan. “First of all, I want to say that this allocated sum will eventually flow into the economy because after all economic transactions will be carried out with this sum,” he said. “Secondly, money has to be spent on ensuring a free expression of the people’s will. So any discussions and speculations are not appropriate in this case.” The Central Election Commission (CEC) will receive more than 2.5 billion drams of the sum. According to Finance Minister Atom Janjughazian, the CEC will in turn spend at least 2 billion drams on the wages of its members and more low-ranking election officials that will organize the vote in polling stations across Armenia. By comparison, the government plans to spend 163 billion drams on education and 111 billion drams on healthcare this year. Its entire 2020 budget is projected at 1.88 trillion drams (almost $4 billion). Armenian Government Records 7.6 Percent GDP Growth In 2019 • Sargis Harutyunyan Armenia -- Cars parked outside a shopping mall in Yerevan, January 9, 2020. Economic growth in Armenia accelerated to 7.6 percent last year, according to government data released on Thursday. Official figures publicized by the Statistical Committee show that trade and other services were the main drivers of this growth which increased the country’s Gross Domestic Product to 6.55 trillion drams ($13.6 billion). A 9 percent rise in industrial output reported by the government agency also contributed to it. By contrast, the Armenian agricultural sector contracted by more than 4 percent in 2019. Prime Minister Nikol Pashinian touted the GDP growth rate during a weekly cabinet meeting in Yerevan. “It means that we have registered the fastest economic growth since 2008 and I want to congratulate all of us in connection with that,” he told ministers. “I am confident that as a result of our joint efforts we will register an even higher figure in 2020.” After years of sluggish growth that followed the 2008-2009 global financial crisis, the Armenian economy expanded by 7.5 percent in real terms in 2017. Its growth slowed to 5.2 percent in 2018, which saw a dramatic regime change in the country, but gained renewed momentum in 2019, leading the International Monetary Fund to revise upwards its growth forecast for Armenia. “For this year we project growth to be at around 6.5-7 percent,” the IMF’s resident representative in Yerevan, Yulia Ustyugova, told RFE/RL’s Armenian service in November. Ustyugova cautioned that Armenian growth is largely driven by private consumption, rather than rising investments or exports. “The challenge remains how to generate sustainable, long-term growth that is driven by investment and exports, rather than consumption,” she said. For its part, the World Bank estimated Armenia’s 2019 growth at 6.9 percent in its latest Global Economic Prospects report released in January. The bank said the Armenian economy will grow by 5.1 percent this year and slightly faster in 2021 and 2022. In early 2018, the World Bank upgraded Armenia’s status from a “lower middle income” to an “upper middle income” nation. The official poverty rate in the country fell from 29.4 percent in 2016 to 23.5 percent in 2018. According to IMF projections, Armenia’s GDP per capita is on course to reach $4,760 and exceed neighboring Azerbaijan’s and Georgia’s in 2020. Government Reaffirms Plans For New Anti-Graft Body • Artak Khulian Armenia -- Deputy Justice Minister Srbuhi Galian, October 15, 2019. The Armenian government is pressing ahead with its plans to set up a special law-enforcement agency tasked with investigating corruption cases, a senior official said on Thursday. The creation of the Anti-Corruption Committee (ACC), slated for 2021, is part of an anti-corruption strategy and a three-year action plan adopted by the government last October. The new body will inherit most of its law-enforcement powers from the existing Special Investigative Service (SIS) which prosecutes state officials accused of various crimes. The Armenian police and other law-enforcement agencies will also cede some of their functions to the ACC. “The Anti-Corruption Committee will investigate only new criminal cases after its creation,” said Deputy Justice Minister Srbuhi Galian. “So there will be no automatic transfers of [corruption] cases from other investigating bodies to the Anti-Corruption Committee.” The government strategy drawn up by the Justice Ministry sets a three-year “transitional period” during which the other law-enforcement bodies will still be able to deal with corruption-related offenses. “We should not immediately overload the newly established structure with all kinds of corruption cases and paralyze its work,” explained Galian. The official also said that a government bill on the ACC will likely be submitted to the Armenian parliament within a month. It may undergo some changes as a result of ongoing public discussions, she added. Such changes have already been proposed by non-governmental organizations. In particular, the Armenian affiliate of Transparency International has called for parliamentary oversight of the ACC’s activities. “Under the government bill, the National Assembly will have no oversight functions or levers,” said Hayk Martirosian, a member of the anti-graft watchdog. “Of course, there is a problem with the constitution here. But our proposal is that this issue should be addressed given the [government] initiative to enact constitutional changes.” Prime Minister Nikol Pashinian has repeatedly claimed to have eliminated “systemic corruption” in Armenia since coming to power in May 2018. Law-enforcement authorities have launched dozens of high-profile corruption investigations during his rule. Disclosure Of Armenian Minister’s Criminal Record Investigated Armenia -- Minister for Local Government Suren Papikian at a cabinet meeting in Yerevan, . Law-enforcement authorities have agreed to investigate what Minister for Local Government Suren Papikian regards as an illegal revelation of his criminal record. The Yerevan daily “Hraparak” reported last week that Papikian was sentenced to 2 years and 3 months in prison in 2006 for stabbing his commander during compulsory military service which he apparently performed at a Russian base in Armenia. It said that he was released from prison a year later. The paper critical of the Armenian government accused Papikian of hiding this fact in his official biography. While acknowledging the criminal conviction, Papikian condemned the “Hraparak” article as an intrusion into his personal life. He implied that he believes the information was leaked to the paper by former or current Armenian officials keen to discredit him and the government. The minister, who is one of the most important members of Prime Minister Nikol Pashinian’s cabinet, urged law-enforcement authorities to find out who publicized “the secret information relating to my private life.” Armenia’s Special Investigative Service (SIS) announced on Thursday that it has launched criminal proceedings in connection with the newspaper report and Papikian’s reaction to it. An SIS statement said the inquiry is conducted under an article of the Criminal Code which applies to cases where state officials illegally collect and spread the kind of information about other individuals which is “considered a secret of private life.” “Hraparak” insisted, meanwhile, that the revelation of Papikian’s criminal record was not an invasion of privacy and that it should not have been kept confidential in the first place. “We have no limitations in addressing the biography of a state official,” the paper wrote on its website. “Especially given that that information is true and not called into doubt. In any case, with our cameras switched on, we are awaiting a visit by the investigators.” Papikian, 33, is a senior member of the ruling Civil Contract party who actively participated in the 2018 “Velvet Revolution” that brought Pashinian to power. He taught history at a private high school in Yerevan prior to the revolution. Reprinted on ANN/Armenian News with permission from RFE/RL Copyright (c) 2020 Radio Free Europe / Radio Liberty, Inc. 1201 Connecticut Ave., N.W. Washington DC 20036.