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CORRUPTION IN ARMENIA IS OF SYSTEMIC NATURE, OSCE YEREVAN OFFICE HEAD


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#1 Yervant1

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Posted 08 April 2011 - 10:19 AM

CORRUPTION IN ARMENIA IS OF SYSTEMIC NATURE, OSCE YEREVAN OFFICE HEAD SAYS

/ARKA/
April 6, 2011
YEREVAN

YEREVAN, April 6. / ARKA /. Corruption in Armenia is of systemic
nature and this is why it must be fought nationally
, head of the OSCE
Yerevan Office, Sergey Kapinos, said during a conference on corruption
problems in higher education sector, organized by the ministry of
education and science, the OSCE Yerevan Office and USAID Mobilizing
Action Against Corruption Activity

'No matter how successful and perfect anti-corruption measures are in
a separate segment the problem can not be solved without a national
purposeful combat,'
he said.

He said corruption is linked directly with the sate of economy.

"Armenian higher learning establishments have large scientific
potential. I would like to call on Armenian scientists and researchers
to more actively put forth ideas and models of social and economic
development. Quality education guarantees economic success,' he said.

In his words, Armenia's problems are typical of all transitional
economies. He said also corruption affects virtually all areas of
life in Armenia and to stamp it out people's mindsets must be changed.

This forum had brought together more than 150 representatives from
government, parliament, higher education institutions and students'
councils to discuss corruption problems in higher education
institutions, and share best practices and lessons learned.

#2 Aratta-Kingdom

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Posted 09 April 2011 - 02:48 AM

He said also corruption affects virtually all areas of
life in Armenia and to stamp it out people's mindsets must be changed.




i second that opinion. nothing is gonna change, unless we do.

#3 Arpa

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Posted 09 April 2011 - 09:31 AM

For every corruptee there is a corrupter, be they domestic or foreign.
For every bribee there is a briber, be they elitar or day laborer.
Until that bureaucratic** "under the table" table is destroyed there will always be the “under the table”.
An old joke goes. A woman was posing for a photographic portrait. She kept saying “takits@, takits@/տակիցը, տակիցը “ meaning “under the table” , so the photographer aimed his camera under her skirt.
Anyone know what “կաշար/kashar/կաշարք/ kasharq means? We will go Language and see.
**In yerevan bureaucrat is known as "chinovnik/չինովնիկ" as if it is a native Armenian word. Is it in reference to "chinese"?


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Edited by Arpa, 09 April 2011 - 11:00 AM.


#4 Aratta-Kingdom

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Posted 10 April 2011 - 12:35 AM

well said Arpa. shan glux@ hetevyali mej a taqnvats. hayastanum mardik amen varkyan 1. inqnahastatman 2. haci xndir en lutsum, u et amboghj@ ughordvum a 1.stov 2.qcelov 3.zorbayutyun anelov. anhnar e kasharakerutyun@ veracnel qani der mardu yes@/iqnutyun@ orva bolor jamerin harvatsi tak e. inqnahastatvelu, inqn iren pashpanelu hamar andz@ stipvats e darnal bri, kopit, sutasan. uv karoghanum' anum e. isk vo chi kroghanum, tsanotn u poghn e hamarum yes@ pashpanelu u inqnahastatvelu mijoc. amenic tarorinak@ [arden] grpacatsneri vijakn e. ays mardkanc(metsapativ murackanneri) mej axkati hoqekertvats@ aynqan e armatacats, vor vaxic drdvats sranq el en amen varkyan 1.poghi u 2.inqnahastatvelu masin mtatsum(el chem xosum dranc lakotneri u hastaqamak kananc masin). popoxutyun mtcnel@ arden jamanaki hramayakann e darcel.----te che shat shat ban enq korcnelu. barebaxtabar ka mi masa vor@ bolori ber@ iren userin barcats araj e gnum. cavoq vorak apahovogh ays mardkanc tiv@ gnalov aveli u aveli e poqranu.

#5 Aratta-Kingdom

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Posted 10 April 2011 - 03:45 AM

anharir a yerki@/joghovrdin pnovelu molutsqov tarvel, yerb andzamb gorts ches anum, u i hasiv @ndhanuri, andznakanin es gerakayutyun talis. nuynqan sxal e jaylami pes aprel@ yerb amboxi brnats ughin tanum e kortsanman.

#6 Aratta-Kingdom

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Posted 11 April 2011 - 10:31 AM

I think the time has arrived to boycott 'all armenia fund', and ask to U.S. government to stop sending money to Armenia.


Yerevan, Elite project, elite fraud and corruption

hetq
April 11, 2011

Levon Hayrapetyan


When Edmond Khudyan, an armenian businessman from US started the project on Mashtotc 33 back in 2005, he did not intent to finish the project himself. He was asked by a reputable person from Armenia to purchase Mashtotc 33's land for a few months, then he would be paid off with small profit and Vladislav Mangasaryan would continue the project. E. Khundyans involvment was supposed to be so called a financial alliance or an investment banking for a short period of time', instead, Edmond Khudyan was forced to become projects developer and take all the risks while V. Mangasaryan was secretly draining projects assets.

Based on the contract in September of 2005, E. Khudyan would purchase project's land and V. Mangasaryan would obtain plans/permits and continue ongoin construction. V. Mangasaryan received an authorization to pre-sale units and forward 50% to E. Khudyan and does not make any effort to pay off the entire balance.

Conflicts arise and V. Mangasaryan offers to get a loan from Adiotrans and pay off $1million from Khudyans balance. Khudyan had no other choice and agrees but during this process V.Mangasaryan pockets the $450,000 from Aviotrans $1,000,000 loan. Conflict arises and the reputable person gets involved, asking to give more time. Reputable person gets involved again in December 2006, again, nothing changes. A Law suit begins and Mangasaryan surrenders, asking, begging for more time.

In Spring of 2007, E. Khudyan was forced to take control of the building, started paying for construction and loan payments himself...


Realizing that E. Khudyan does not trust him anymore, V. Mangasaryan sends his long time friend and past business partner Gevorg Gulumyan to fix things up. The first and following meetings with Gevond Gulumyan start with threats...


...They directly and indirectly destroyed and forged documents from accounting and tax collection agency, fixed documents, created loans and liability to force the company to bankruptcy to avoid law suits and to steal remaining assets of the company. In a result, 2 lines have been placed against the company, 1 for none payment of the government taxes and another one by V. Mangasaryans company, V.M.G. Group, who is fighting to steal remaining $2million of the company assets which belongs to innocent homebuyers mostly from Diaspora.


...E. Khudyan has mailed several letters to government officials (including to President Serzh Sargsyan) but as of now, there is no response, no action and no result of any kind, yet E. Khudyan believes that the country is heading a right way a lot has changed in the past few years. That a corruption of this kind will not remain covered. Just will be served.

#7 Yervant1

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Posted 11 April 2011 - 01:28 PM

These crook SOB's should be put in Khor Virap and put a lid on it until they rot in their feces. :angry:

#8 Louise Kiffer

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Posted 11 April 2011 - 02:51 PM

[quote name='Arpa' date='09 April 2011 - 10:31 AM' timestamp='1302363107' post='280818']
For every corruptee there is a corrupter, be they domestic or foreign.
--------------------------------------

reply:
To give a bribe is a tradition in many oriental countries.
An Algerian woman went to see the teacher of her daughter to ask her to put her
daughter in an upper classroom. The teacher said it is not possible, she has not
got the pass mark. The woman tried to give her money, the teacher said that is not
done in France. The woman said to a friend : « may be she expected more money »
This is a true story.

#9 Yervant1

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Posted 12 April 2011 - 11:34 AM

HALF-MEASURES ON CORRUPTION IN ARMENIA
By Hasmik Hambardzumian

Institute for War and Peace Reporting IWPR
CAUCASUS REPORTING SERVICE, No. 586
April 10, 2011

Investigative body has generated some prosecutions, but its critics
say it isn't addressing corruption as systemic issue.

A body tasked with curbing bribery in Armenia is under fire from
critics who say it has failed to address the culture of endemic
corruption since it was set up in 2008.

Opposition leaders are demanding access to the Control Chamber's files
so that they can put any suspicious-looking cases before parliament.

In November, Spartak Melikyan of the Republican Party, accused
a Control Chamber official of soliciting a bribe while checking
the accounts of a university. The chamber's head Ishkhan Zakaryan
responded by suing Melikyan, but eventually dropped the case, saying
the two sides had settled out of court.

The outcome did little to allay concerns about the anti-corruption
body.

The Control Chamber can run checks on the accounts of any government
agency or publicly-funded institution. It reports to parliament, and
any possible cases of wrongdoing are handed over to the prosecution
service.

Sona Ayvazyan of the Armenian office of Transparency International,
an international anti-graft group, said the Control Chamber had
conducted some serious investigations, but these had not resulted in
legal action.

"In the end, no one is made responsible. I don't know of any cases
where someone's been held to account over an embezzlement case,"
she said, "The investigations remain on paper, and the checks are
done for their own sake."

Armenia's ranking on Transparency International's Corruption Perception
Index has slipped from 99th place in 2007, before the Control Chamber
it was created, to 123rd, alongside Eritrea and Niger, in 2010.

The prosecution service says 11 of the 15 cases the Control Chamber
has passed to it since have resulted in criminal law proceedings and
the recovery of more than half a million US dollars.

An investigation of the emergencies ministry's Seismic Defence
Service last year resulted in its head being sacked and charged with
embezzling around 9,000 dollars, while the head of Armenia's social
security service lost his job in December following a similar probe.

In the latter case, Zakaryan said his agency found that pensions
were being paid out to dead people, although it was too early to say
whether this was deliberate embezzlement or just incompetence.

Officials say findings like these have proved the chamber's worth.

"We are very satisfied by this organisation's performance, and we're
trying to assist it as much as we can," Prime Minister Tigran Sargsyan
said. "Problems are identified, debated properly and made known to
the public. That helps to minimise the risk of corruption growing."

Opposition politicians want more of a say in running the Control
Chamber, which they accuse of operating double standards.

"An ordinary doctor earning 40,000 drams [110 dollars a month] can be
arrested for taking a bribe of 20,000 drams. Yet officials who steal
millions can easily evade punishment; in some cases they just have
to pay compensation for damages and that's the end of the matter,"
Armen Martirosyan, a member of parliament from the Heritage party said.

Ayvazyan said the Control Chamber should be focusing its attention
on high-ranking officials, since those in the middle grades would
not get involved in major corruption unless their superiors approved.

"This work must not be an end in itself. Why is the process
incomplete? Because there is no desire to make these people take
responsibility, since they have the support of the highest officials,"
she said.

Arthur Sakunts of the Vanadzor office of the Helsinki Civil Assembly,
says the Control Chamber has failed to win public's confidence.

"Its investigations... do not go into the whole mechanism for
embezzling state funds," he said. "One gets the impression that the
political and executive authorities use the chamber as a method of
punishing officials."

This year, the Control Chamber is due to broaden its the scope of its
investigations, looking into the court system, a number of government
ministries and provincial administrations, and the underground railway
in Yerevan.

Hasmik Hambardzumyan is a correspondent for the www.panorama.am site.

#10 Aratta-Kingdom

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Posted 12 April 2011 - 11:45 PM

[quote name='Louise Kiffer' date='11 April 2011 - 01:51 PM' timestamp='1302555076' post='280861']<br>[quote name='Arpa' date='09 April 2011 - 10:31 AM' timestamp='1302363107' post='280818']<br>For every corruptee there is a corrupter, be they domestic or foreign.<br>--------------------------------------<br><br>reply:<br>To give a bribe is a tradition in many oriental countries.<br>An Algerian woman went to see the teacher of her daughter to ask her to put her<br>daughter in an upper classroom. The teacher said it is not possible, she has not <br>got the pass mark. The woman tried to give her money, the teacher said that is not<br>done in France. The woman said to a friend : « may be she expected more money »<br>This is a true story.<br>[/quote]<br><br>that's why i always say, the change has to come from all sides. es noxkali vijak@ dprocic durs kyanqi mnacats volortnerum el e arka. tsnogh@ yerexayi cankutyun@ katarum e inch vor pahanj bavarareluc heto. kin@ amusnun mexanikoren kaxvatsutyan mej e pahum amusnakan partakanutyunneri harcum, qani der amusin@ ir cankutyunner@ chi katarel. bazmaporc kuyser@ der sharunakum en karmir xndzori arevtur@. byurokratakan aparati hamarya bolor ashxatoghner@ inch vor ban aknakalu dimac en irenc partakanutyunner@ katarum. mardik "azgayin joghovi" yerespoxan en darum irenc negh andznakan harcer@ lutselu hamar. yekeghecu spasavor@ aranc dram aknkaleu nuynisk dzerqi girq@ chi bacum. <br><br>indz tvum e mtavor mi xav petq e dzevavorvi vor ayd btacats vijakic bolorin durs hani. qani der chka arajnordi derum inch vor mek@, charchiutyun anel@ mez iroq hascnelu e inqnakortsanman. amena var apacuyc@ hay-turqakan ardzanagrutyunnern er. serj@ ira kashin prkelu hamar patrast er zohaberelu cankacats azgayin shah miayn te ger hzorner@ ira anorinakanutyunneri dimac achq pakein.

Edited by Aratta-Kingdom, 12 April 2011 - 11:47 PM.


#11 Yervant1

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Posted 15 April 2011 - 08:38 AM

A HISTORIC CHANCE FOR OLIGARCHS
JAMES HAKOBYAN

Story from Lragir.am News:
http://www.lragir.am...ments21348.html
Published: 14:08:33 - 13/04/2011

Whenever the necessity of fundamental and large-scale reforms in the
country is discussed, we often hear the response that Serge Sargsyan
cannot chop the branch on which he is sitting. In fact, this statement
is true. Serge Sargsyan cannot fight oligarchs, monopolists, crime
leaders because their efforts ensure desirable results in elections.

Consequently, Serge Sargsyan must change the branch and sit on another
branch to be able to chop the previous one. However, the curiosity of
this situation is that in order to change his branch, that is rely
on the society and enjoy the confidence of the society, he must cut
the branch on which he is now sitting, which dries the government tree.

A vicious circle is there, which supports the idea that Serge Sargsyan
cannot carry out reforms in the country because if genuine and honest,
they will be highly painful for monopolists and oligarchs and criminal
groups serving the government. On the other hand, if Serge Sargsyan
fails to cut that branch, the situation will fall heavily on his
shoulders, and he will heavily rely on the branch. Hence, by not
cutting the branch he aggravates the situation of the country. By
aggravating the situation, he increases the weight on the branch,
aggravating the danger of breaking the branch.

In other words, either the branch is cut or it will be broken. Here
is another vicious circle the government is in. And in this circle,
not only Serge Sargsyan must worry, for whom failure or delay of
reports may be deciding, but also the "branch" must worry, those who
form this branch. Because if Serge Sargsyan does not "chop" them,
as a branch they will break under their own weight.

Changing Serge Sargsyan will not change the situation. The weight will
not change from this. It is the situation that makes Serge Sargsyan
heavy. And the situation makes Sargsyan heavy not because it dislikes
Serge Sargsyan but because Sargsyan would not change the situation.

Consequently, changing him will not reduce the weight, and the problem
of changing the situation will persist. In other words, this problem
is not only Serge Sargsyan's problem but the problem of oligarchs
and monopolists standing around him, consequently Serge Sargsyan must
be likewise interested in the fast change of situation not to be cut
or broken.

Reforms have become a vital necessity for not only the state and
the society but also the oligarchs and monopolists because if the
situation collapses, it will fall on their heads. Mansions, bodyguards
and armored motorcades will not help. There is, of course, the option
of leaving the country and enjoying there their wealth accumulated
here. But first this enjoyment is relative because even dictators who
leave their country are arrested decades later, let alone oligarchs
and monopolists, especially in the world which is shrinking thanks
to the development of technology. Besides, it is impossible to fully
disappear from Armenia. If they have to become a fugitive, it will
be a matter of mere physical salvation.

What is the point of aggravating the situation to this extent for
monopolists and oligarchs if it is possible to avoid it by increasing
the sense of responsibility for the country? Not all of them but
most of them may have this sense. This is like justice which may fall
ill but never dies. And healing the sense of responsibility in some
oligarchs or monopolists can fundamentally change the situation in
the country. The point is that they do not have any medium-term or
even long-term plans to resist to the risk of being cut or breaking,
instead they have the last, or maybe a historic chance to change
the situation and prevent collapse, which may become an attenuating
circumstance for the society.

#12 Yervant1

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Posted 16 April 2011 - 08:10 AM

CORRUPTION IS INSOLVABLE
PAYLAK FAHRADYAN

Story from Lragir.am News:
http://www.lragir.am...ciety21396.html
Published: 17:33:18 - 15/04/2011

The issue of corruption still remains unsolved in Armenia. Moreover, a
tendency of extension of the general perception of corruption, various
ways of its expression in different spheres can be noticed. Concluded
representatives of Mobilizing Action Against Corruption (MAAC)
activity.

According to studies, in 2010, the level of corruption rose by 10
percent in Armenia. According to released data, corruption risks
prevail especially in judicial and electoral sectors.

Public opinion polls have been conducted in different regions of the
country. Around 1500 citizens were polled. 2010 studies show that about
80% of citizens thinks the corruption is a serious issue of Armenia.

Researches make it clear that the fight against corruption gives no
results. What the policy of the country should be like and whether
steps to fight corruption are taken up.

According to specialists, no attempt to reduce or eliminate expressions
of corruption in our country is made. There is another issue:
the citizens are not aware of their rights, besides, it should be
cleared whether it is the citizen to offer a bribe, or the official
to request it.

According to the project manager Yevgenia Paturyan, these are
challenges that need serious analyses.

Corruption is widely spread within high-ranking officials. The most
corrupt institutions are the office of the Prosecutor General and the
Central Electoral Commission, the spheres - health and education,
says the manager of Mobilizing Action against Corruption program
Francois Vezina.

Here, Armenia has much to do; the anti-corruption programs elaborated
by the government give no results.

#13 Yervant1

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Posted 28 September 2011 - 11:01 AM

DIASPORA, OLIGARCHY, CITIZENS
James Hakobyan

Lragir.am News
http://www.lragir.am...ments23518.html
13:15:53 - 27/09/2011

In a meeting with the Armenian entrepreneurs in Los Angeles, as the
official press release informed, Serzh Sargsyan noted that in the
past twenty years the potential of the citizens of Armenia has not
been used fully.

It is a hint that Armenia could have reached greater success, even
in the blockade that Armenia has been in over its independence, had
the potential of the citizens been used at full. The reason why this
potential has not been used or has not been used appropriately seems
to be known to everyone. This potential was stifled in election fraud,
criminal and oligarchic economic relations, corruption covering the
country like weeds.

To use the potential of the citizens at full, all these hindrances
should be eliminated. Serzh Sargsyan is certainly aware of this but
is he ready to take dynamic steps in this direction? Is he ready to
dissolve the criminal and oligarchic economy?

He invites Diaspora entrepreneurs to have greater participation in
the economy of Armenia, generally in the development of the economy
of Armenia. However, Sargsyan who sends this invitation must be ready
to reduce the participation of Ruben Hairapetyan, his brother Sashik
Sargsyan, Samvel Alexanyan and other similar oligarchs.

After all, those Diaspora entrepreneurs and these oligarchs cannot
coexist: either the Diasporan entrepreneurs will have to get used to
the rules and ways of the oligarchy, or the oligarchy will have to
leave. Maybe Serzh Sargsyan thinks that the more Diaspora entrepreneurs
come to Armenia, the more dominant this quality will be in the economy
and public life, ousting the oligarchy. However, this is an illusion,
to put it mildly, because the Diaspora businessmen will come to Armenia
only after this oligarchy is ousted. Because it is necessary to oust
that oligarchy to use the potential of the citizens of Armenia. This
step directed at using the potential of the citizens of Armenia will
be a signal for Diaspora and any serious foreign businessman to make
investments in Armenia.

For the time being, Serzh and Tigran Sargsyan only speak about fight on
corruption, the same oligarchy is made to pass legislation on fight on
themselves first ensuring them that these laws will never be enforced.

#14 Mher100

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Posted 19 October 2011 - 05:13 AM

http://www.armreal.info/ :

Армянский олигарх Гагик Царукян уверен, что Армении необходимы инвестиции. Отчего же он так брутален с запрубежными инвесторами, вложившими деньги в армянскую экономику? Не потому ли, что Доди Гаго прежде всего бизнесмен,а не политик?

Основанная на реальных фактах история обманутых инвесторов, вложивших деньги в экономику Армении.

(http://www.armreal.info/)

#15 Yervant1

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Posted 23 November 2011 - 12:41 PM

BUSINESSMAN URGES FORCED EVICTION OF OLIGARCHS

HETQ
November 23, 2011

In an exclusive interview with the civic group "We Will Not Remain
Silent" diaspora businessman Levon Hayrapetyan minces no words in
condemning a number of problems plaguing Armenia.

Levon Hayrapetyan is a Russia-based businessman and benefactor born
in Karabakh.

Hayrapetyan lashes out at endemic corruption, the illiteracy rampant
in the state bureaucracy and the stifling oligarchy that has taken
over many aspects of life.

The businessman also responds to the recent interview given by Charles
Aznavour and the flap over the tiling of the walls at the Gandzasar
Monastery in Artsakh.

Hayrapetyan calls officers in the Armenian army leading lavish
lifestyles as "individuals suffering from an inferiority complex."

In closing, Hayrapetyan said that it would only take six months to
establish law and order in tiny Armenia and that an "exodus" of the
oligarchs and not the average people should be organized.

The interview was conducted by phone since Hayrapetyan was in France
at the time.

#16 Yervant1

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Posted 23 November 2011 - 01:03 PM

WHAT ARMENIA SUFFERS
HAKOB BADALYAN

Story from Lragir.am News:
http://www.lragir.am...ments24289.html
Published: 21:48:26 - 22/11/2011

Armenia is a small landlocked country still suffering the economic
impact of the unresolved conflict with Azerbaijan, writes Tom de Waal,
senior researcher for Carnegie Endowment in an article on emigration
from Armenia. He studied emigration from Armenia, wrote about its
reasons, spoke about the difficult situation but apparently he arrived
at a wrong conclusion.

The point is that Armenia is not suffering the economic impact of the
unresolved conflict. Yes, the conflict with Azerbaijan had an impact
on the relations with Turkey, significantly limiting the economic
possibilities for Armenia. But the sufferings of the country are not
caused by this impact.

Armenia suffers the political and economic monopolies, as well as
provincial thinking and morality that began hardly three or four years
after the independence, consistently established and consolidated in
the following years and in the past ten years directly crystallized
and institutionalized. Armenia suffers because it already has the
third president, and all the three presidents ruled, and the third
continues to rule with the mindset that they are the key to the
salvation of the country and any opinion and action beyond their
scope is against the nation.

Armenia suffers because the political government is coalesced with
business and is using the government bodies as support unit for their
own businesses.

Armenia suffers because the Constitution is a titular document which
is implemented to limit the creative potential of the society rather
than to open up this potential.

Armenia suffers weak law enforcement, corruption, injustice,
material and financial greed of the ruling class. If the conflict
with Azerbaijan is resolved and the roads are opened for transport
in the current situation, the change of the situation in Armenia will
not be realistic.

It may sound strange but with the current level, structures, content
and morality in Armenia open roads will lead to considerable increase
in statistics but will be a mere route for the nourishment of political
and economic monopolies, ensuring additional resources for this system.

The change of the situation in Armenia, the growth of importance of
public opinion in internal processes are determined not only by the
rising level of civil consciousness and activity in different layers
of the society, powerful opposition but also the lack of nurturing
resources which weakens the principle of almightiness.

Strangely, though, in Armenia the possibility of internal reform seems
to be greater, even in the current conserved situation the government
will nevertheless take steps because otherwise the government itself
will be threatened.

For Armenia, at least statistical growth is necessary. Certainly we
do not have hope for internal change, there is no will, consistency,
if we think we are doomed to live under the press of the political
and economic monarchy of a group of people, where human rights and
freedoms are dosed, where distribution of wealth is dosed, where a
group of people make decisions which are more forceful than the law,
where we do not set political and civilization goals before the state,
all we can do is to have the blockade lifted and enjoy the fruits
of statistics which can lead to considerable improvements in diet
and clothing.

These are truly important circumstances and man fairly wants to eat
nice food, and dress in nice clothes, and live in comfortable houses
unless it happens at the expense of others.

But in this case the problem is the choice of the public and political
elites, whether they have political and civilization wishes and
ambitions which are above all these things because they are considered
as elite by the scope and quality of their understanding rather than
by food they eat, clothes they wear and houses they live.

#17 Mher100

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Posted 04 December 2011 - 03:23 AM


Foreign investments in Armenia at risc

Armenia - with giant steps backwards?
Several German, Austrian and Swiss entrepreneurs and businessmen know Armenia from our investor trip. All participants were impressed by the people's friendliness, the country's potential and the beginnings there of an economic and democratic boom. Despite the recent war over its two breakaway republics, the boom in neighboring Georgia is long since tangible. The conditions in Armenia were similar to those in Georgia and the expectation was strong that Armenia would undergo similar developments. Unfortunately it didn't turn out that way. Despite the takeover of the Armenian stock market by NASDAQ OMX as well as other promising early signs, the reality looks quite different. Neither laws nor regulations but rather national self-interest is dictating commerce with foreign investors.
The following chronology of one of our investments in Armenia shows the arbitrary nature of dealings with foreign investors:

We did not want to accept our arbitrary ouster; we were determined to fight and to initiate legal proceedings. Easier said than done.
We spent countless days just searching for a lawyer and invested in more trips to Armenia for this purpose alone. We used all imaginable and unimaginable contacts in order to find a lawyer to represent us in this matter. It was utterly impossible: No Armenian lawyer was prepared to take on an official mandate against Multigroup (and against its powerful owner Gagik Tsarukyan). Those who initially agreed to take our case later rescinded their offers.

The Armenian government is sending clear signals:
We informed the Armenian embassy and the Armenian consulate in Germany about the case. And likewise, we notified authorities such as the Armenian Development Agency (ADA), whom we apprised of the situation back on July 5th, 2008, previous to taking any action. One of the actual roles of the ADA is to look after and assist foreign investors - but the reality is the direct opposite (see next page).
The German ambassador in Yerevan also kindly intervened, sending a representative to speak with the Armenian prime minister about our case and then reporting back to us.

Not from one single(!) Armenian authority did we receive even a hint of an answer. Not one single reply - nothing!
. But rather, our inquiries (including that to the Armenian Development Agency) have jeopardized our other investments in Armenia. …

Conclusion
Above all, emerging markets bear political and corporate-governance risks. All of us know this; it's part of the principle. But I have no desire to conceal that I am deeply disappointed about Armenia's chosen path. I once believed in Armenia's path to becoming a state governed by the rule of law, and brought many investors into the country. That is now history. What remains is a hypothetical democracy under whose guise national and personal interests dictate dealings with westerners like us.

It is Armenia itself - nobody from outside - that is blocking the road to its own future.

Old thinking once again wins the upper hand. What a world of difference to neighboring Georgia which, despite all the trouble along its way to democracy, is now a state of law, with an open heart onto Europe - and always giving a warm "welcome" to foreign investors.

Source:
http://www.ostinvest...t-nicht-gegeben



Edited by Mher100, 04 December 2011 - 03:29 AM.


#18 Mher100

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Posted 04 December 2011 - 03:32 AM

I wonder myself - why do we have such an organisation like the Armenian Development Agency (ADA) who is supposed to assist foreign investors - and instead of assisting they support our corrupted Armenian leaders in ripping foreign investors off, in ruining the country´s image.

#19 Yervant1

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Posted 04 December 2011 - 10:10 AM

Amnesty Granted To Oligarchs

Naira Hayrumyan

Story from Lragir.am News:
http://www.lragir.am...ciety24358.html

Published: 11:28:02 - 29/11/2011

The public and the government have actually declared unlimited amnesty
to the oligarchy, acknowledging the existence of monopolies, the
shadow economy defying the legislation, the dominance of oligopolies.
No one is punished for economic crimes.

In his speech during November 25 rally, Levon Ter-Petrosyan repeated
the idea that the oligarchy is the result of the criminal regime which
has cornered businessmen forcing them to break the law. It is clear
that Ter-Petrosyan was being a little wily, trying to communicate to
the oligarchs that if they support the opposition, they will be
insured against loss of their property and accountability. Although,
the famous saying is that a thief's place is in prison.

Everyone has a choice, and a lot of businessmen are not oligarchs.
Some of them left the country, others closed their businesses because
they prefer not to work under criminal `market' rules, yet others
still work strictly observing the law and without economic terror
against people.

So, the problem is not just in the authorities but in the human
characteristics of oligarchs. They are not as innocent as Levon
Ter-Petrosyan wanted to present them.

We can judge about these people, their dreams and their visions by the
way they spend the money they earn with such hard work. This money is
really earned with a lot of difficulty, humiliation, violence. They
need to hire bodyguards to protect themselves from these things. They
even have to buy expensive indulgence for their sins but it does not
help them get rid of the sense of guilt.

Moreover, these people cannot resolve an important problem - how to
spend the money. All they think of is building fortresses to live, a
couple of restaurants to eat and expensive brands to where, as well as
some holidays in Dubai where they feel at home in a familiar oriental
atmosphere. Yes and some charity events with political overtones.

They have neither vision, nor ambitions, or monumentality or anything
else. What will these people leave after them? Is it worth spending so
much money earned with such difficulty on cheesy entertainment?

Meanwhile, they could implement grandiose, even a little adventurous
ideas, such as build something magnificent - the world's largest
university campus, for instance. Let it be named after the oligarch
but he will be remembered forever. After all, even the Arab sheikhs
who are the favorites of our oligarchs invest their money in grand
projects, such asice fields, artificial islands, grand buildings, and
this is what made the Arab world a place of pilgrimage for tourists.
Ideas are the key brand in business.

The imagination of our oligarchs is at the level of their stomachs.
Even if someone is intelligent enough to invest in a dream of theirs,
they do it by humiliating others.

Perhaps it is necessary to adopt a law banning people without
imagination from becoming oligarchs and senior government officials.

#20 Yervant1

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Posted 09 December 2011 - 10:38 AM

GIFTED MINISTER AND UNGIFTED CORRUPTION
JAMES HAKOBYAN

Story from Lragir.am News:
http://www.lragir.am...ments24513.html
Published: 14:56:51 - 09/12/2011

December 9 is the International Anti-Corruption Day. This means
that today is the International day of fight against the Armenian
authorities, because the Armenian authorities embody the corruption.

The corruption is the basis of the ruling system of Armenia. In
case of its elimination, the system will collapse. In answer to such
affirmations, the big and small representatives of the power say that
corruption exists in all the countries of the world, even in the most
civil, development, democratic and legal ones.

This is true. It will be an exaggeration to affirm corruption doesn't
exist in the U.S. or France or any other European country.

But when this circumstance is the answer to the accusation or criticism
of the systemic corruption existing in Armenia, then it is nothing
else but substitution of concepts.

Sure, there is corruption in civil and developed countries too, but in
those countries corruption is a crime which is punished. In Armenia,
corruption is a phenomenon for which explanations and justifications
are provided.

Say, when it is said that despite the Constitution provisions,
businessmen become MPs in Armenia, the government does not adopt a law
and does not initiate the revelation and punishment of this fact, but
gives explanations such as the law is incomplete and needs improvement
in order to deprive those people of the possibility to be MPs.

There is a clear corruption phenomenon but there is no relevant
fight against it, only fragmented explanations, which just legitimate
corruption.

While in a legal country, the Prosecutor's office, the National
Security Service and the Police would engage in the revelation of
the issue and would punish those who break the law.

But this can shake and even destroy the governmental system, so there
is no fight against the serious corruption phenomenon.

The same goes for the other spheres where there is also serious
corruption. For instance, officials have luxurious movable and
immovable property but they register everything on behalf of their
"movable" or "immovable" relatives.

Everyone knows that there is corruption here because the property
in reality is the result of the business activities of officials,
which they try to conceal. It seems that the law enforcement system
is meant to reveal everything and not to make anyone conceal the
corruption results.

But in Armenia the law enforcement system does not try to deal with
the corruption to find out that the property belongs to the official
and not his mother-in-law, and the official bought the property with
suspicious money.

Instead, everything is explained by the incompleteness of laws and only
through the improvement of the law, we will eliminate the corruption.

It is clear why the law enforcers do not deal with these issues.

Otherwise, the system would collapse.

There are plenty of such examples. If in Europe, a minister resigns
because his friend's factory received the ministry's orders, or because
he spends holiday in a too expensive for his salary place, in Armenia
such things can be maximum considered election exotics or political
vendetta. Mainly, the minister's friend would be declared a benefactor
who cares for the state orders. And the Minister could be awarded for
his services to the country for being so gifted to have such a friend.




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