Russian pres satisfied with OSCE MG countries’ statement on NK

Today.Az, Azerbaijan
July 11 2009

Russian president satisfied with OSCE MG countries’ statement on
Nagorno-Karabakh conflict

11 July 2009 [09:44] – Today.Az

Russian President Dmitriy Medvedev is satisfied with a joint statement
adopted by the OSCE Minsk Group co-chair countries – Russia, the
United States and France during the G-8 Summit in the Italian L’Aquila
city, the Vesti TV channel reported.

"We have received the relevant statement and urge the sides to make
additional efforts to solve the Nagorno-Karabakh conflict," Medvedev
said at a news conference after the summit.

The Russian president said he hopes to quickly meet with the
Azerbaijani and Armenian presidents and continue discussions of this
issue.

"We, the presidents of the OSCE Minsk Group, confirm our commitment to
the Armenian and Azerbaijani presidents in the Nagorno-Karabakh
conflict settlement and encourage them to resolve some remaining
differences and conclude a peaceful settlement," the statement said.

"We instruct our mediators to provide the Armenian and Azerbaijani
presidents with an updated version of the Madrid paper, dated Nov. 29,
2007, containing the co-chairs’ latest proposals on forming of the
basic principles," the joint statement by leaders of Russia, the
United States and France said.

/Trend News/

URL:

http://www.today.az/news/politics/53711.html

BAKU: Aliyev Receives Azerbaijani & Armenian Intellectuals

PRESIDENT ILHAM ALIYEV RECEIVES AZERBAIJANI AND ARMENIAN INTELLECTUALS

State Telegraph Agency of the Republic of Azerbaijan
July 3, 2009 Friday

At the initiative of the embassies of Azerbaijan and Armenia to the
Russian Federation and support of the OSCE, a group of Azerbaijani
and Armenian intellectuals have today visited Khankendi, Shusha and,
then, traveled to Armenia where they met President Serzh Sargsyan.

Later that day, the group left Yerevan for Baku where they were
received by President of Azerbaijan Ilham Aliyev.

The group included Armenian ambassador to Russia Armen Smbatyan,
editor-in-chief of Arovot newspaper Aram Abramian, director of
the Mediamaks news agency Ara Tadevosian, journalist of the Novoye
Vrema newspaper Armen Khanbabyan, members of Armenian parliament
Ermine Nagdalyan, Mkhitar Mnasakanyan, footballer Eduard Markarov,
director of the S. Paradjanov museum Zaven Sargsyan, director of
the Public Organization Shushan Katlamadjan, medical worker from
Nagorno-Karabakh Lyudmila Grigaryan, Russian President`s special envoy
for international cultural cooperation Mikhail Shvidkoy, members of the
Azerbaijan parliament Asim Mollazade, Rovshan Rzayev, Rector of the
National Conservatory Siyavush Karimi, chief of cultural department
of the Shusha Executive Power Zahid Abbasov, editor-in-chief of the
Karabakh newspaper Chingiz Ismayilov.

On the Azerbaijan`s stance on the Nagorno-Karabakh conflict, the Head
of State said resolution of the problem must be based on Azerbaijan`s
territorial integrity and inviolability of frontiers only, with
granting high autonomy status to Nagorno-Karabakh.

Sports Ground Of Aknakhbyur Village School Repaired With Sponsorship

SPORTS GROUND OF AKNAKHBYUR VILLAGE SCHOOL REPAIRED WITH SPONSORSHIP OF CYPRIAN PARLIAMENT’S ARMENIAN DEPUTY

NOYAN TAPAN
JULY 9, 2009
IGEVAN

IGEVAN, JULY 9, NOYAN TAPAN. The sports ground of Tavush region’s
Aknakhbyur village was repaired with the sponsorship of Cyprian
parliament’s Armenian deputy Vardgez Mahtesian. Proper accessories of
football, basket-ball and other sports were given to the school. The
program was implemented by the Hayastan All Armenian Fund. According
to community head Karen Dolmazian, the comfortable sports ground
will give an opportunity to teenagers to spend their leisure in a
more interesting way.

According to the Hayastan All Armenian Fund report, thanks to the
Fund’s USA East Coast’s local body it is already a month that gas is
supplied to Aknakhbyur, it has its irrigation system. And with the
sponsorship of Canada’s ARF body now the construction work of the
community’s about 3.5 km water tube is underway.

"Anelik Bank" Increases Its Capital By 2.5 Times

"ANELIK BANK" INCREASES ITS CAPITAL BY 2.5 TIMES

/PanARMENIAN.Net/
06.07.2009 21:41 GMT+04:00

/PanARMENIAN.Net/ "Anelik Bank" will increase its capital by 2.5
times after entering into alliance with Lebanese Credit Bank, which
has acquired 51% of Armenian bank’s shares, "Anelik Bank" CJSC’s
Board Chairman Samvel Chzmachian told a news conference. Earlier,
the bank enjoyed the reputation of Armenia’s best labor bank,
because since its inception, it generated its capital due to its own
work and its own income, he said. "Only during the recent years when
Armenia’s banking system became more attractive to foreign investors,
we started to fall behind the paces of its development," he said. In
that period, the bank faced the need of increasing its capital,
and was lucky enough to find a an investor like the Lebanese Credit
Bank. "The transaction is advantageous to both "Anelik Bank" which
will increase its capital by 2.5 times and the Lebanese Bank. There’s
a special connection between Lebanon Armenia and Russia, because our
subsidiary bank has been operating in Russia for many years."

Armenian bank’s board chairman stressed the great positive importance
of the transaction, especially in crisis circumstances.

In his turn, Credit Bank’s board chair Tarek Khalife added that the
process of acquiring "Anelik Bank’s" shares started much before the
world crisis. "Crisis is a temporary phenomenon, while our transaction
has long-term perspectives," he said, adding that the transaction
will help the bank to develop with new assets because the new shares
acquired will help the bank increase its capital by AMD 15 billion. In
that connection, Khalife said that Armenia’s economy and banking system
will develop, making the country a banking centre on CIS territory.

According to the Lebanese Bank’s board chair, the deal will help
increase the level of services rendered.

Khalife expressed gratitude to RA Prime Minister Tigran Sargsyan,
"Anelik Bank’s" board chairman Samvel Chzmachian and all other
interested parties.

Jubilee Evening Dedicated to AGBU Vice President, Arshavir Gundjian

AGBU Press Office
55 East 59th Street
New York, NY 10022-1112
Phone: 212.319.6383, x118
Fax: 212.319.6507
Email: [email protected]
Website:

PRESS RELEASE

Monday, July 6, 2009

Jubilee Evening Dedicated to AGBU Vice President, Arshavir Gundjian

A tribute evening celebrating the more than fifty years of services
rendered by Arshavir Gundjian to the Armenian nation, political and
public life, took place on Saturday, March 14, 2009 in the Jirair and
Elize Dervishian Hall of the AGBU Alex Manoogian Center in Montreal,
Canada.

The program, which was organized by AGBU, Canadian Diocese of the
Armenian Church, Tekeyan Cultural Association and the Democratic Liberal
Party, was attended by more than 300 individuals from across the
continent. It enjoyed the sponsorship of His Holiness Karekin II,
Catholicos of All Armenians, who was represented by Bishop Bagrat
Galstanian, Primate of the Canadian Diocese, and AGBU President Berge
Setrakian, who was represented by AGBU Central Board Member Berge
Papazian from Toronto. Present in person was the mayor of the City of
St. Laurent, His Worship Alan De Sousa.

As the honoree and members of his family entered the hall, the program
began with the playing of the Canadian and Armenian national anthems.
Welcoming remarks were delivered by the evening’s master of ceremonies,
Armen Bechakdjian, Chairman of the AGBU Montreal Chapter, who praised
the longtime efforts of Gundjian.

Fr. Vazken Boyajian, pastor of St. Gregory the Illuminator Cathedral,
presented the pontifical letter of benediction of Catholicos Karekin II.
Other featured speakers included: Vartouhi Balian, former principal of
the Alex Manoogian School; Haroutiun Arzoumanian, chairman of the
Central Executive Committee of Tekeyan Cultural Association. In his
heartfelt speech, Arzoumanian remarked on his indefatigable
collaboration with the honoree over the years, noting that experiencing
this jubilee celebration gave him much spiritual satisfaction. Panos
Titizian, veteran ADL member, who arrived from Los Angeles for the
occasion, said that Arshavir Gundjian had become a prominent party
figure, owing to his extensive scientific preparation, brilliant
intelligence, perspicacity and steadfastness of his convictions.

On this occasion, Archbishop Vatche Hovsepian of Los Angeles, former
primate of the Western Diocese of the Armenian Church of North America,
and Archbishop Hovnan Derderian, the current primate, conveyed their
blessing and good wishes via pre-recorded video greeting.

Other event speakers and presenters included Ara Boyadjian, Chairman of
the Canadian Diocesan Council, Sylva Tokatlian, and Noubar Babikian.
AGBU Central Board Member Berge Papazian presented Gundjian’s
accomplishments as vice president of AGBU, emphasizing the notable
building projects he helped to accomplish.

The evening’s keynote speaker was Yervant Azadian, well-known diasporan
Armenian intellectual, journalist, foreign member of the Armenian
National Academy of Sciences and longtime close associate of the
honoree.

The cultural portion of the program featured internationally renowned
singer Aline Kutan. Ruben Mirzakhanian, president of Tekeyan Cultural
Association of Armenia, honored Gundjian with the organization’s First
Order "Ararat" diamond-studded insignia.

A video presentation outlining Gundjian’s life and accomplishments was
shown to the audience and a sculpture by Armenian Canadian artist Arto
Tchakmakchian was presented to the honoree by the artist himself.
Finally, Gundjian was invited to address the audience.

A scientist and university professor, Gundjian thanked the organizing
committee for making the event possible. He expressed his gratitude to
all those in attendance and the handful of colleagues, who contributed
to his accomplishments through their thoughtful efforts. He expressed
special thanks to his physician, Dr. Sarkis Meterissian, who had saved
his life years ago, as well as his family, who endured his dedication to
national activities over the years. He emphasized the roles of the
Armenian Church, ADL Party, Tekeyan Cultural Association and AGBU in the
sacred work of national preservation. He voiced special praise for
those, who contribute their services toward this end, for the benefit of
the nation and homeland, and especially toward the efforts to preserve
the Armenian diaspora.

Bishop Bagrat Galstanian, Primate of Canada, ended the program with his
cordial remarks and blessing.

All donations made on the occasion were to go towards the creation of
the "Dr. Arshavir Gundjian Scholarship Fund."

Established in 1906, the Armenian General Benevolent Union (AGBU) is the
world’s largest non-profit Armenian organization. Headquartered in New
York City, AGBU () preserves and promotes the Armenian
identity and heritage through educational, cultural and humanitarian
programs, annually serving some 400,000 Armenians in 35 countries.

www.agbu.org
www.agbu.org

Police deny reports of ethnic conflict outbreak in Marhanets

Kyiv Post

Police deny reports of ethnic conflict outbreak in Marhanets,
Dnipropetrovsk region
Today, 11:23 | Ukrainian News

Ukrainian police deny reports that an outbreak of ethnic conflict has
broken out in recent days in the industrial town of Marhanets,
Dnipropetrovsk region, but admit a conflict has been defused.

"There were no ethnic problems and will not be. We have localized the
conflict," said Anatoly Naumenko, head of the Interior Affairs
Ministry in Dnipropetrovsk region..
Speaking about the reported incidents, Naumenko confirmed that a group
of criminals murdered a policeman, then later damaged five cars
(smashed lights and glass of three of them; overturned two others)
owned by Ukrainian citizens of Armenian origin.
Naumenko said the criminals were detained, but were released later
after a court refused to issue a warrant.
In an apparently related incident which triggered the car incidents,
Naumenko said the court sanctioned the arrest of an ethnic Armenian
resident in Marhanets on suspicion of murdering the policeman. That
arrest occurred on July 28. The police offer was killed that very same
day while off duty during a scuffle that broke out in a Marhanets
café.
Naumenko said elite polite guards were patrolling the town to prevent
any escalation.

Virtual College For Diaspora Armenians

VIRTUAL COLLEGE FOR DIASPORA ARMENIANS
Sona Hakobyan

"Radiolur"
03.07.2009 17:22

Only 5% of Diaspora Armenians have an opportunity to attend Armenian
schools. The new Armenian classroom is already a reality. From now
on world-spread Armenians will have their on-line school.

According to the Founding Director of the on-line college, Dr. Yervand
Zoryan, the on-line education is a good alternative for the remaining
95%.

Anyone has an opportunity to study at the new virtual educational
establishment, irrespective of age, the place of residence and the
level of knowledge. The first virtual classrooms were opened on June
14 and 150 students from 22 classes use the on-line service.

The education is paid. One course includes 9-week classes and costs
$199.

Participation in the courses is voluntary, but the one who takes all
the courses, will get a diploma.

Armenia – Will critical review halt restrictive Religion Law?

FORUM 18 NEWS SERVICE, Oslo, Norway

The right to believe, to worship and witness
The right to change one’s belief or religion
The right to join together and express one’s belief

========================================== =======

Thursday 2 July 2009
ARMENIA: WILL CRITICAL REVIEW HALT RESTRICTIVE RELIGION LAW?

The Council of Europe and OSCE have given a highly critical review of
proposed amendments which have already been approved by Parliament in their
first reading. The amended Religion Law would ban the sharing of faith,
require 500 adult citizen members before a religious community could gain
legal status, ban non-Trinitarian Christian communities from gaining legal
status, give broad reasons for banning religious communities, and recognise
the "exclusive mission" of the Armenian Apostolic Church. The new Criminal
Code Article 162 would punish the sharing of beliefs. "The authorities have
to take the points of this review into account, though I don’t know if they
will," Russian Orthodox priest Fr David Abrahamyan told Forum 18 News
Service. "If they adhered to European standards they wouldn’t have adopted
these amendments in the first reading." The government’s senior religious
affairs official, Vardan Astsatryan, told Forum 18 he had "no knowledge" of
the results of the review. But the Jehovah’s Witnesses told Forum 18
Astsatryan had told them in mid-June that the proposed amendments have been
suspended but not abandoned.

ARMENIA: WILL CRITICAL REVIEW HALT RESTRICTIVE RELIGION LAW?

By Felix Corley, Forum 18 News Service <;

One week after a critical international review of the restrictive proposed
amendments to Armenia’s Religion Law and Criminal Code was made public, the
Armenian government’s senior religious affairs official, Vardan Astsatryan,
told Forum 18 News Service from the capital Yerevan on 1 July that he had
"no knowledge" of the results of the review. "Parliament has probably not
handed the review on to the government." Astsatryan, who heads the
government’s Department on National Minority and Religious Issues, stressed
that the proposed amendments were the initiative of Parliament. "They’ll
discuss them and only then will the government give its views."

Although the government’s then deputy spokesperson Petros Demirchyan had
told Forum 18 back in March that the government was "satisfied" with the
proposed amendments, Forum 18 has been unable to find out what its current
attitude is, given the critical review. No spokespersons would discuss the
issue by phone on 1 and 2 July. On 1 July Forum 18 submitted written
questions on whether the government still supports the amendments, but had
received no reply by the end of the working day on 2 July.

The highly critical review – conducted jointly by the Council of Europe’s
Venice Commission and the Organisation for Security and Co-operation in
Europe (OSCE) Advisory Council on Freedom of Religion or Belief – was made
public on 23 June on the Venice Commission website
(< DL-AD%282009%29036-e.asp>).

The controversial proposed new Religion Law would ban the sharing of faith
("proselytism"), require 500 adult citizen members before a religious
community could gain legal status, ban non-Trinitarian Christian
communities from gaining legal status, give broad reasons for banning
religious communities, and recognise the "exclusive mission" of the
Armenian Apostolic Church. The proposed new Article 162 in the Criminal
Code would punish the sharing of beliefs. Both were approved by Parliament
in their first readings on 19 March, despite strong criticism from human
rights defenders and many religious communities (see F18News 24 March 2009
< e_id=1272>).

Deputies from only one political party, the centrist Heritage Party led by
former Foreign Minister Raffi Hovannisian, voted against the proposed Laws
in the first reading.

The amendments were initiated by Armen Ashotyan, then a parliamentary
deputy of the Republican Party in the government coalition who has since
become Education Minister. The parliamentary committee he headed – on
Science, Education, Culture, Youth and Sport – is now led by Artak Davtyan.
His staff told Forum 18 on 1 July that he is away at an interparliamentary
meeting in Lithuania and unable to be reached. Forum 18 was unable to reach
any other deputies on the Committee he heads.

However, an official of the Committee confirmed to Forum 18 that it had
received the Council of Europe/OSCE review. The official added that as
Parliament is on its summer recess, no action will be taken before
September.

Ashotyan insisted to Forum 18 on 1 July that he no longer has any
involvement in the process of adopting the amendments since his departure
from Parliament and appointment as a minister. He said he had drawn up the
original draft Laws working with "several persons" in the Armenian
Apostolic Church, but declined to name any of these Church figures.

Some are sceptical over Ashotyan’s claims that he is no longer involved.
Stepan Danielyan, Chair of the Yerevan-based Collaboration for Democracy
Centre who is a fierce critic of the amendments, told Forum 18 that
"officially Ashotyan will not be involved, but unofficially he will".

Review identifies ten "major problems"

The Legal Opinion prepared by the Council of Europe’s Venice Commission
and the OSCE Advisory Council on Freedom of Religion or Belief is highly
critical not only of both draft laws, but of the existing Religion Law as
well.

Ten "major problems" in the drafts approved in the first reading are
identified in the Opinion. Among the recommendations are that:

– all religious communities, including those not registered as a religious
organisation, should be able to gain legal status if they want it;

– the proposed registration requirements "require extensive redrafting,"
including deleting the definition of Christianity – described as "entirely
objectionable" – and not increasing the minimum numbers necessary to
register. As the Opinion notes, even the current threshold of 200 is
probably "discriminatory and disproportionate";

– the list of rights granted to registered groups by the current Religion
Law "must be also guaranteed and accessible for smaller religious groups,
and most of them must also be accessible even for individuals, because they
are normal manifestations of freedom of religion or belief." The Opinion
also stresses that this list should be seen as an illustration of legal
rights, and not as a limitation on carrying out other kinds of religious
activity;

– "proselytism" as an offence should be clearly defined as "improper
proselytism." This definition itself should be "drawn with greater care"
and the penalties "should be reconsidered as they could appear to be unduly
harsh." The Opinion discusses the difficulties of defining "improper
proselytism" and notes that "the right of proselytism must extend to
individual members and to religious groups." The proposed Religion Law
devotes much attention to restricting the right to share beliefs (see
F18News 24 March 2009
< e_id=1272>).

– and the proposed Article 162 of the Criminal Code "should not permit the
imposition of sanctions on a religious organisation such as the Jehovah’s
Witnesses" for stating that its members should refuse to undertake military
service. As of 1 June, Armenia held 76 Jehovah’s Witness prisoners of
conscience in jail for conscientious objection to military service. The
country promised the Council of Europe that it would introduce a genuinely
civilian alternative to military service by January 2004, but has not done
so (see F18News 11 December 2008
< e_id=1228>).

The review noted that the Venice Commission, the Council of Europe
Directorate General of Human Rights and Legal Affairs and the ODIHR
Advisory Council on Freedom of Religion and Belief "stand ready to continue
to assist the Armenian authorities".

International review welcomed

Welcoming the Council of Europe/OSCE review were a number of religious
communities Forum 18 spoke to. "They have done high quality work," Asatur
Nahapetyan, General Secretary of the Baptist Union, told Forum 18 from
Yerevan on 2 July. "It is very clear – if parliament accepts the
recommendations from the Council of Europe and the OSCE it will be very
nice for us. I don’t know if they will though."

Although not as hostile to the proposed amendments as other religious
communities, Nahapetyan said the Baptist Union is concerned over the
requirement to have 500 members to gain legal status and the ease with
which individuals who talk about their faith could be brought to court.

More critical of the proposed amendments is Fr David Abrahamyan of the
Russian Orthodox Church in Yerevan. He complains of the "monopoly" the
proposed Law would give the Armenian Apostolic Church. "This is against
equality and is unjust," he told Forum 18 on 2 July. "Getting money from
abroad – whether from the Moscow Patriarchate or our diocese in Krasnodar
in Russia – would become impossible, while going into prisons, building
churches and preaching would be restricted. Why are all these limitations
being proposed?"

Fr Abrahamyan said the current proposed Laws do not accord with European
standards. "Armenia should take account of international standards – we
aspire to being a European state. The authorities have to take the points
of this review into account, though I don’t know if they will. If they
adhered to European standards they wouldn’t have adopted these amendments
in the first reading."

The priest said the Russian Orthodox Church had written to Prime Minister
Tigran Sargsyan to voice its concerns, but he had responded that it should
write instead to the Speaker of Parliament, Hovik Abrahamyan (no relation
of the priest). "We got no reply from the Speaker and were never invited to
Parliament to give our views – it is very strange that when the Russian
Orthodox Church has concerns it is not listened to."

Jehovah’s Witness lawyer Lyova Margaryan believes the international
criticism was inevitable, given the restrictive provisions of the draft
Laws. "It would have been impossible for the Council of Europe and OSCE to
have approved these Laws," he told Forum 18 on 1 July.

Other religious communities Forum 18 sought views from – including the
Armenian Apostolic Church, other Protestant communities and non-Christian
faiths – did not respond.

Will Laws be pushed through or abandoned?

Danielyan of the Collaboration for Democracy Centre says the authorities
have "no other choice" than to continue to push the Laws through, given
that they have already been approved in the first reading. "They can’t
abandon them – this would be a sign that they and the Armenian Apostolic
Church had lost," he told Forum 18. "They could continue with them, amend
them or postpone them."

He would like to see a "serious public discussion" of how religion should
be treated in law. "The Council of Europe/OSCE review provides a good
opportunity." He believes the existing Religion Law itself needs to be
discussed and argues that "strange formulations" in it need to be removed.

Rene Leonian, head of the Evangelical Church of Armenia who also opposes
the proposed amendments, said that now the review has been delivered, "I
have more conviction that the Armenian authorities must suspend
consideration of these Laws". He echoes the call for a public debate, which
he says must involve government bodies, civil society and religious
communities. "We believe there shouldn’t just be a few changes but a global
look at the whole issue involving these three parties," he told Forum 18
from Yerevan on 2 July.

Leonian said that when he met Speaker Abrahamyan on 31 March to discuss
the proposed Laws, the Speaker promised a discussion once the Council of
Europe/OSCE review was received. "The best time to hold this discussion is
before any further readings are even considered. I hope the authorities
will have the wisdom to call the various parties – including NGOs and
religious communities – for a discussion."

Jehovah’s Witness lawyer Margaryan told Forum 18 he had met government
religious affairs official Astsatryan in mid-June, who had told him the
proposed amendments are now "on hold". When Margaryan asked if they had
been removed entirely Astsatryan said No. (END)

Further coverage of Armenian-related religious freedom issues is at
< mp;religion=all&country=21&results=50>

A printer-friendly map of Armenia is available at
< s/atlas/index.html?Parent=asia&Rootmap=armeni& gt;.
(END)

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You may reproduce or quote this article provided that credit is given to
F18News

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Visual Artists From 20 Countries Coming To Iran For Youth Festival

VISUAL ARTISTS FROM 20 COUNTRIES COMING TO IRAN FOR YOUTH FESTIVAL

Cultural Heritage News

16th International Visual Arts Festival for Youth

Tehran, July 1, 2009: The northern city of Gorgan in Golestan Province
will be hosting the 16th International Visual Arts Festival for Youth
from July 11 to 14.

The director of the Visual Office of the Ministry of Culture and
Islamic Guidance Mahmud Shaluii in a press conference held here on
Tuesday at Tehran+s Vahdat Hall said that the 16th edition of the
festival would be held with international participants aged from 16
to 25. "Several regional Islamic countries took part in the previous
edition. This year, artists from 20 countries, including China,
Pakistan, Armenia, Kuwait, Senegal, Afghanistan, and Germany will be
participating," Shaluii added. He said that the festival features
sections for drawing, painting, calligraphy, miniature, sculpture
and cartoons, MNA reported. The opening ceremony will take place on
the morning of July 11, and several workshops and street paintings
are also scheduled during the program, Shaluii explained.

Secretary of the festival Gholamreza Montazeri, also at the conference,
said that the festival helps develop the potentials of the province,
adding, "220 Iranian and 40 foreign artists will be participating in
the two major sections of the exhibition and in workshops."

Montazeri added that on the side section of the festival, several
other programs including exhibition of paintings by Iranian masters,
and holding tours for the participants to visit beautiful sites of
the province are also arranged.

Ex-executive accuses insurance giant of ‘purging’ customers

Ex-executive accuses insurance giant of ‘purging’ customers

updated 11:26 a.m. EDT, Thu July 2, 2009

By Jim Acosta and Bonney Kapp
CNN’s American Morning

PHILADELPHIA, Pennsylvania (CNN) — Wendell Potter says he is finished
defending the insurance industry, which he says is "beholden to Wall
Street."
Wendell Potter once was a vice president in the public relations
department for insurance giant Cigna.

Wendell Potter once was a vice president in the public relations
department for insurance giant Cigna.

At a hearing last week before the Senate Commerce Committee, the
former vice president of corporate communications at the insurance
giant Cigna testified, "I know from personal experience that members
of Congress and the public have good reason to question the honesty
and trustworthiness of the insurance industry."

The committee’s chairman, Jay Rockefeller, D-West Virginia, told
Potter, "You are better than Russell Crowe on ‘The Insider,’ "
referring to the award-winning 1999 film about cigarette company
executive Jeffrey Wigand, who blew the whistle on the tobacco
industry’s practices.

In his testimony and during an interview with CNN, Potter described
how underwriters at his former company would drive small businesses
with expensive insurance claims to dump their Cigna policies. Industry
executives refer to the practice as "purging," Potter said.

"When that business comes up for renewal, the underwriters jack the
rates up so much, the employer has no choice but to drop insurance,"
Potter said.

CNN obtained a transcript of a 2008 Cigna conference call with
investors in which company executives use the term "purge."

But in an e-mail to CNN, Cigna spokesman Chris Curran denied the
company engages in purging.

"We do not practice that. We will offer rates that are reflective of
the competitive group health insurance market. We always encourage our
clients to compare our proposed rates to those available from other
carriers," Curran wrote.

Cigna had revenue of $19.1 billion in 2008, according to the company
Web site.

Potter started thinking about leaving Cigna in 2007 after he visited a
medical charity event at a Virginia fairground.

"It was almost like an electrical jolt," Potter said.

At the event, Potter took pictures of doctors offering free health
care to the uninsured.

"The volunteer doctors were seeing patients in barns, people in animal
stalls," Potter said. "It changed it for me."

He says he finally decided to quit in 2007 after Cigna’s controversial
handling of an insurance claim made by the family of a California
teenager, Nataline Sarkysian.

The Sarkysian family made repeated appeals at news conferences for
Cigna to approve a liver transplant for the 17-year-old, who had
leukemia. Cigna initially declined to cover the operation, then
reversed its decision.

Sarkysian died hours after the company’s reversal.

As Cigna’s spokesman during the controversy, Potter had no role in the
decision to deny coverage. But he was inundated with angry phone
calls.

"After she died, my voice mail and my e-mail inbox were just filled
with messages from people who were just outraged, " Potter said.
Don’t Miss

Now a senior fellow on health care for the nonpartisan watchdog group
Center for Media and Democracy, Potter writes a blog on health care
reform. In particular, he is keeping an eye on efforts to defeat
legislation that would give Americans the option of joining a
government health care plan, something he now supports.

He says he witnessed how the insurance industry torpedoed health care
reform efforts during the Clinton administration.

"They conduct what I call duplicitous PR campaigns. They’ll say what
people want to hear," Potter says. "It’s how they operate. You cannot
trust these guys."

Potter is also taking aim at some of the TV commercials aired by
groups opposed to changes. One such ad caught Potter’s eye. Run by the
conservative organization Patients United Now, the ad says that "now,
Washington wants to bring Canadian-style health care to the U.S."

"Sometimes you’ll see misleading information. And sometimes you’ll see
outright lies, like that [ad] is," Potter said, referring to the spot.

Patients United Now spokeswoman Amy Menefee disagreed.

"We’re not saying there’s a Canada health care act of 2009," Menefee
said. "It is a trend. It’s trending in that direction."

Potter notes that the leading proposals for health care in Congress do
not seek to set up Canadian-style health care in the United States. He
says claims that overhauling the system would lead to "rationing" of
care are missing his point.

"What we have is rationing by corporate executives who are beholden to
Wall Street. And it happens all the time," Potter said.