Monday, July 04, 2018
Serzh Sarkisian’s Brother Suspected Of ‘Illegal Enrichment’
• Ruzanna Stepanian
Armenia -- President Serzh Sarkisian (R) awards a medal to his brother Levon
Sarkisian, 22 March, 2016.
A brother of former President Serzh Sarkisian and his two children could face
prosecution on corruption charges after law-enforcement authorities discovered
nearly $7 million held by them in an Armenian bank.
The State Revenue Committee (SRC) launched criminal proceedings against them on
Friday shortly after announcing that a company linked to Levon Sarkisian has
been fined 800 million drams ($1.7 million) for tax evasion.
The SRC said that while searching Sarkisian’s home its investigators found
documents showing that he, his son Narek and daughter Ani deposited a total of
$6.8 million in the unnamed bank “in the second half of 2017.” It said that the
ex-president’s youngest brother and Ani Sarkisian failed to disclose these sums
to a state anti-corruption body while Narek did not file any income
declarations at all.
Under Armenian law, such declarations are mandatory for high-ranking state
officials and their family members. This legal requirement applies to Levon
Sarkisian because he has long worked as ambassador-at-large at the Armenian
Foreign Ministry.
The Special Investigative Service (SIS), which took over the corruption inquiry
launched by the SRC, said on Monday that Sarkisian and his children are now
suspected of “illegal enrichment.” Levon and Ani could be also accused of
underreporting their incomes and assets, which is also a criminal offence in
Armenia.
None of the suspects has been formally charged so far. An SIS spokesperson that
they all have signed written pledges not to leave the country until the inquiry
is over.
However, an aide to Levon Sarkisian told RFE/RL’s Armenian service
(Azatutyun.am) that he has not been in Armenia for the last twelve days.
Armenia - Vachagan Ghazarian empties his bag filled with cash after being
arrested by the National Security Service in Yerevan, 25 June 2018.
The SIS filed last Wednesday the same criminal charges against Vachagan
Ghazarian, Serzh Sarkisian’s longtime chief bodyguard arrested a week ago.
Ghazarian carried over $1 million worth of cash in a bag during the arrest.
Police found another $1.1 million as well as 230,000 euros ($267,000) in cash
when they searched his apartment earlier in June.
The National Security Service (NSS), another law-enforcement body, said last
week that Ghazarian was also planning to withdraw 1.5 billion drams ($3.1
million) held by him and his wife in a local bank. He claimed that he “forgot”
to add these sums to his official income declarations, according to the NSS.
Former President Sarkisian has not yet commented on the corruption cases
against his relatives and Ghazarian, one of his most trusted individuals.
Armenia’s new government has been instrumental in these and other high-profile
corruption probes. Prime Minister Nikol Pashinian has repeatedly pledged to
“root out” endemic corruption in the country since he swept to power about two
months ago.
Workers Protest Against Blockage Of Armenian Mining Site
• Anush Mkrtchian
Armenia - Employees of the Lydian International mining company demonstrate in
Yerevan, 2 July 2018.
More than 200 Armenian employees of a U.S.-based mining company demonstrated in
Yerevan on Monday against the blockage of a massive gold deposit in
southeastern Armenia which continued for a tenth consecutive day.
The Lydian International company, which had won exclusive rights to develop the
Amulsar deposit, said it has suffered millions of dollars in losses and could
take legal action if one of the largest business projects in Armenia’s history
is disrupted.
All roads leading to Amulsar have been blocked since June 23 by a group of
residents of nearby communities protesting against gold mining operations
planned there. More than 1,400 people working there, many of them also local
residents, have therefore been unable to go to work.
The protesters already twice blocked workers’ access to the site for several
days in late May and early June. Prime Minister Nikol Pashinian urged them to
end the protests. He said he will order government inspections of “all metal
mines” in the country to verify and, if necessary, ensure their compliance with
environment protection norms.
Pashinian criticized the renewed road blockade on June 25, warning that it
could be deemed an act of “sabotage” against Armenia’s new government. He said
Lydian must be allowed to resume its operations pending the findings of an ad
hoc government task force that will start inspecting the mining company soon.
However, the protesters rejected the appeal, saying that Lydian must
immediately halt the construction of its gold mining and smelting facilities at
Amulsar, which was due to be completed this fall.
Pashinian said on Sunday that all government decisions regarding Amulsar will
be based on “irrefutable facts.” He did not say whether he will order the
Armenian police to forcibly unblock the mining site.
The Lydian employees led by senior company executives in Armenia marched to the
prime minister’s office in Yerevan the following morning. They demanded urgent
government action against what they see as an illegal obstruction of their
company’s operations.
“As many as t 1,400-1,500 people earning a living there are now forced to stay
at home,” said one of the protesting workers. “If our operations are illegal
then let them find a solution to that. If they are legal, then the roads must
be reopened so that the people can go back to work.”
“We have already suffered $5 million in losses in the last ten days,” Lydian’s
chief executive in Armenia, Hayk Aloyan, told RFE/RL’s Armenian service
(Azatutyun.am).
Armenia - Gold mining facilities constructed by Lydian International company at
Amulsar deposit, 18 May 2018.
Aloyan insisted that Lydian, which is registered in a British tax haven but
headquartered in the U.S. state of Colorado, is not yet considering suing the
Armenian state for failing to meet its contractual obligations. He said the
demonstration staged by Lydian employees was also a show of support for the
Pashinian government’s stance on the Amulsar blockage.
Still, Aloyan did not rule out the possibility of legal action. “If we see that
the matter is not solved through dialogue, we could appeal to other bodies and
try to have our rights restored. But we will keep working with the government
[for now.]”
Lydian started construction at Amulsar in 2016 after going through a lengthy
licensing process administered by Armenia’s former government. It pledged to
invest more than $400 million in the deposit and more than triple Armenia’s
gold exports which stood at an estimated $100 million last year.
Gold production at Amulsar was due to start before the end of this year. It is
not yet clear whether the continuing protests there will delay it.
Armenian environment protection groups are strongly opposed to the Amulsar
project, saying that it would contaminate air and water in the mountainous
area. Lydian maintains that it will use advanced technology to prevent any
damage to the local ecosystem.
The mining project is strongly supported by the U.S. and British governments.
The U.S. ambassador to Armenia, Richard Mills, argued last year that it has
been deemed “fully compliant” with environment protection standards set by the
World Bank and the European Bank for Reconstruction and Development (EBRD). The
EBRD holds a minority stake in Lydian.
Mills apparently expressed concern over the disruptions when he met with Deputy
Prime Minister Tigran Avinian on June 14. According to Avinian’s press office,
the U.S. envoy “stressed the importance of the continuation of Lydian Armenia’s
activities.”
According to the National Statistical Service (NSS), Lydian was the main source
of $246 million in foreign direct investment attracted by Armenia last year.
Workers Protest Against Blockage Of Armenian Mining Site
Հուլիս 02, 2018
• Anush Mkrtchian
Armenia - Employees of the Lydian International mining company demonstrate in
Yerevan, 2 July 2018.
More than 200 Armenian employees of a U.S.-based mining company demonstrated in
Yerevan on Monday against the blockage of a massive gold deposit in
southeastern Armenia which continued for a tenth consecutive day.
The Lydian International company, which had won exclusive rights to develop the
Amulsar deposit, said it has suffered millions of dollars in losses and could
take legal action if one of the largest business projects in Armenia’s history
is disrupted.
All roads leading to Amulsar have been blocked since June 23 by a group of
residents of nearby communities protesting against gold mining operations
planned there. More than 1,400 people working there, many of them also local
residents, have therefore been unable to go to work.
The protesters already twice blocked workers’ access to the site for several
days in late May and early June. Prime Minister Nikol Pashinian urged them to
end the protests. He said he will order government inspections of “all metal
mines” in the country to verify and, if necessary, ensure their compliance with
environment protection norms.
Pashinian criticized the renewed road blockade on June 25, warning that it
could be deemed an act of “sabotage” against Armenia’s new government. He said
Lydian must be allowed to resume its operations pending the findings of an ad
hoc government task force that will start inspecting the mining company soon.
However, the protesters rejected the appeal, saying that Lydian must
immediately halt the construction of its gold mining and smelting facilities at
Amulsar, which was due to be completed this fall.
Pashinian said on Sunday that all government decisions regarding Amulsar will
be based on “irrefutable facts.” He did not say whether he will order the
Armenian police to forcibly unblock the mining site.
The Lydian employees led by senior company executives in Armenia marched to the
prime minister’s office in Yerevan the following morning. They demanded urgent
government action against what they see as an illegal obstruction of their
company’s operations.
“As many as t 1,400-1,500 people earning a living there are now forced to stay
at home,” said one of the protesting workers. “If our operations are illegal
then let them find a solution to that. If they are legal, then the roads must
be reopened so that the people can go back to work.”
“We have already suffered $5 million in losses in the last ten days,” Lydian’s
chief executive in Armenia, Hayk Aloyan, told RFE/RL’s Armenian service
(Azatutyun.am).
Armenia - Gold mining facilities constructed by Lydian International company at
Amulsar deposit, 18 May 2018.
Aloyan insisted that Lydian, which is registered in a British tax haven but
headquartered in the U.S. state of Colorado, is not yet considering suing the
Armenian state for failing to meet its contractual obligations. He said the
demonstration staged by Lydian employees was also a show of support for the
Pashinian government’s stance on the Amulsar blockage.
Still, Aloyan did not rule out the possibility of legal action. “If we see that
the matter is not solved through dialogue, we could appeal to other bodies and
try to have our rights restored. But we will keep working with the government
[for now.]”
Lydian started construction at Amulsar in 2016 after going through a lengthy
licensing process administered by Armenia’s former government. It pledged to
invest more than $400 million in the deposit and more than triple Armenia’s
gold exports which stood at an estimated $100 million last year.
Gold production at Amulsar was due to start before the end of this year. It is
not yet clear whether the continuing protests there will delay it.
Armenian environment protection groups are strongly opposed to the Amulsar
project, saying that it would contaminate air and water in the mountainous
area. Lydian maintains that it will use advanced technology to prevent any
damage to the local ecosystem.
The mining project is strongly supported by the U.S. and British governments.
The U.S. ambassador to Armenia, Richard Mills, argued last year that it has
been deemed “fully compliant” with environment protection standards set by the
World Bank and the European Bank for Reconstruction and Development (EBRD). The
EBRD holds a minority stake in Lydian.
Mills apparently expressed concern over the disruptions when he met with Deputy
Prime Minister Tigran Avinian on June 14. According to Avinian’s press office,
the U.S. envoy “stressed the importance of the continuation of Lydian Armenia’s
activities.”
According to the National Statistical Service (NSS), Lydian was the main source
of $246 million in foreign direct investment attracted by Armenia last year.
Another Member Of Former Ruling Party Quits As Mayor
• Karlen Aslanian
Armenia -- Elections of the mayor of Hrazdan, 17Apr2016
The municipal council Hrazdan, a town in central Armenia, unanimously accepted
on Monday the resignation of its longtime mayor affiliated with former
President Serzh Sarkisian’s Republican Party (HHK).
Aram Danielian, who has run Hrazdan for over 15 years, is the third
HHK-affiliated mayor who has stepped down since the recent change of the
country’s government.Unlike the mayors of Armavir and Echmiadzin, he has not
faced street protests by local residents.
Explaining his decision, Danielian said he wants to make sure that “the town
doesn’t suffer” as a result of regime change in Yerevan. “A new political force
has come to power and it now wields financial resources and administrative
levers,” he told RFE/RL’s Armenian service (Azatutyun.am). “That is why I found
it necessary to cede my post to a representative of [Prime Minister Nikol
Pashinian’s Civil Contract] party who could solve the town’s problems.”
Danielian said at the same time that he was “advised” to resign by Romanos
Petrosian, the new governor of the Kotayk province of which Hrazdan is the
administrative center. Petrosian, who is a Civil Contract member, admitted that
he “urged” the mayor to quit.
Under Armenian law, a fresh mayoral election must be held in Hrazdan later this
year. The town will be governed by an interim mayor appointed by the central
government until then. The government has not yet named Danielian’s temporary
replacement.
According to some press reports, a 25-year-old son of Sasun Mikaelian, a
prominent Civil Contract member based in Hrazdan, could become its next mayor.
Mikaelian, who is also a parliament deputy, was Danielian’s main challenger in
the last mayoral election held in 2016. He accused the incumbent of buying
votes and abusing administrative resources. The HHK denied the allegations.
Danielian was again put on the defensive last year after his teenage son Razmik
was charged with running over and killing a man with a car belonging to the
Hrazdan municipality. The 16-year-old had no driving license because of his
young age. He not only avoided imprisonment but was also among more than 100
schoolchildren who received medals for academic excellence from Serzh Sarkisian
later in 2017.
Sarkisian’s decision to hand the state award to Razmik prompted strong
criticism from independent Armenian media outlets. Some commentators portrayed
it as further proof of impunity enjoyed by senior government officials, their
cronies and relatives.
Press Review
(Saturday, June 30)
“Azerbaijan has no idea what it can expect from these [new Armenian] government
on the battlefield,” Pavel Felgenhauer, a Russian military analyst, tells “168
Zham.” He speculates that Baku now hopes to ascertain Yerevan’s “intentions”
and test the latter’s “real strength” by heightening tensions in the
Nagorno-Karabakh conflict zone.
“Zhamanak” looks at a set of amendments to the Armenian Electoral Code that
have been drafted by an ad hoc team set up by Prime Minister Nikol Pashinian.
One of those amendments would lower the vote threshold for winning seats in
Armenia’s parliament to 4 percent for political parties and 6 percent for
alliances. “On the one hand, it would allow us to have a more representative
parliament,” comments the paper. “On the other hand, it is hard to tell how a
more diverse parliament would contribute to the establishment of a [democratic]
political system, especially in Armenia where consolidation of political forces
is long overdue.”
“Hraparak” notes that none of Armenia’s former presidents has ever been
prosecuted or even questioned as a witness in a criminal investigation.
“Yesterday Armenia’s law-enforcers broke that taboo,” writes the paper. “They
first searched one brother of Serzh Sarkisian, looking for but not finding
illegally owned weapons before freeing him. Then the investigative department
of the State Revenue Committee (SRC) opened a criminal case against the other
brother, Levon Sarkisian. We are sure that the majority of our society will
welcome this news as a major step towards the triumph of justice.Indeed, maybe
it’s about time everyone in our country, including the most protected
individuals and, in particular, members of the family of the country’s leader,
realized that everyone is equal before the law.”
“Aravot” says that Serzh Sarkisian’s Republican Party of Armenia (HHK) is now
the only major political force which is in opposition to Nikol Pashinian’s
government. “That party should rid itself of criminal elements in order to
stand a chance of becoming normal opposition,” writes the paper. “Other
opposition parties will also emerge within a year, before [fresh parliamentary]
elections. They must not be labelled as anti-popular or anti-state.”
(Tigran Avetisian)
Reprinted on ANN/Armenian News with permission from RFE/RL
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