Kenya: Armenians: The Inside Story

KENYA: ARMENIANS: THE INSIDE STORY

The East African Standard (Nairobi)
March 15, 2006
Posted to the web March 14, 2006

The hand of well-connected Government operatives yesterday showed
itself in the unfolding saga surrounding two Armenians said to be
mercenaries with a mission on Kenyan soil.

It also emerged that either one or both men arrived at the Jomo
Kenyatta International Airport in Nairobi for their sensational
Press conference on Monday in a Government vehicle, complete with
security escort.

They were received by several civil servants, led by a senior Kenya
Airports Authority manager, The Standard has learnt.

The reports came as Government-aligned MPs called for the arrest
and prosecution of former Roads minister Raila Odinga, who blew the
whistle on the Armenians, and who the two men have alleged to have
lent Sh108 million.

The Government of National Unity MPs said in a statement that Raila
was destabilising the country through propaganda.

And police are seeking Mwingi North MP Kalonzo Musyoka to record a
statement following his admission that he may have met the men.

But in a rejoinder, the Orange Democratic Movement claimed the
Armenians were State guests and that their Monday morning Press
conference was facilitated by Government officials.

On his part, Kabete MP Paul Muite claimed the Armenians had been
hosted at State House. But President Kibaki issued a statement denying
the claim.

The Standard learnt from a KAA employee that the Armenians – Mr
Artur Sargysyan and Mr Artur Margaryan -were driven to the airport,
whisked through an electronically -operated secret door into a transit
restaurant where they waited for a Kenya Airways plane to land from
Dubai. This was to make it appear like one of them had just stepped
off the plane.

The operation almost backfired because the plane, which was supposed
to land at 6:30am, delayed for 40 minutes.

When it finally landed, the men were moved towards the plane through
an emergency and little-used door on the air bridge, 20 minutes after
other passengers had disembarked.

A KAA employee shepherded them to the air bridge, the mechanically
extendable access to the doors of the plane.

We have also learned that the two men were accompanied by a State
House employee, a personal assistant of a National Rainbow Coalition
activist and a middle-level protocol officer, who took them to the
VIP lounge that is the preserve of ministers, top civil servants,
the top cream of the diplomatic and international guests.

Their arrival attracted the attention of the staff on duty because
they used a blue GK-plated vehicle, escorted by a red saloon car with
KAT registration. Curiosity mounted when the group used the parking
normally reserved for the KAA General Manager at the office inside
the airport ring.

The latest revelations cast doubt on claims by one of the Armenians
that he arrived in Kenya on Monday morning to clear his name. The
KAA employee said both men were driven into the airport in one car,
and then taken through a route for new arrivals.

There was more confusion when Kenya Airways declined to confirm the
authenticity of an alleged flight manifest sent to newsrooms by lawyer
Fred Ngatia – the man who organised the news conference.

The alleged manifest, whose date did not indicate the year, only had
a list of names, with no details of seats and compartments.

A KAA official pointed out that it was lacking a crucial
internationally mandatory line on the top. The airline said a flight
manifest could not be released, except on orders of a court or police.

The plot thickened when Immigration minister Gideon Konchellah said
the men were citizens of the Czech Republic, who had arrived on a
private jet. He later issued a statement clarifying that they were
Armenian businessmen with permits to be in Kenya.

Ngatia, a senior Nairobi-based lawyer, called up journalists on Sunday
night and was at the airport early on Monday morning to facilitate
their clearance to the VIP lounge.

Yesterday, KAA Deputy Managing Director Naomi Cidi denied claims by
ODM that she had been involved in the Monday drama.

Asked why the men were allowed into the VIP lounge, she said the room
was opened on the request of journalists. Accounts of journalists
who covered the conference however indicated that special passes to
the VIP lounge were awaiting them when they arrived at the airport,
as Ngatia had been given their names the night before.

And police yesterday went to a house in Runda Estate, Nairobi, where
the Armenians are staying, ostensibly to arrest them. But they were
denied access and left, only for one of the Armenians to speed away
in a blue car.

On Tuesday, the Armenians came out in the open with a claim that
they had loaned Raila $1.5 million (Sh108 million). They also claimed
Raila – who had circulated copies of their passports saying they took
part in the commando raid on the Standard Group premises on March
2 – and Kalonzo Musyoka, had asked them for Sh3 billion last year,
ostensibly to finance a No-confidence motion against President Kibaki.

Yesterday, reports filtered in that the officer investigating the
mercenary claims – Nairobi deputy criminal investigations officer
Isaiah Osugo – had sent word he wanted Kalonzo, who said on Monday
that he met the foreigners, to record a statement. The ODM leader is,
however, in Ethiopia and it was not clear when he would come back.

In another twist, Kenya Airport Police Unit investigators, whose head
Mr Moses Nyakwama told journalists they were kept in the dark on the
presence of the Armenians in the airport and their unlimited access
to secluded and privileged areas, questioned seven KAA employees who
cleared the Armenians at every stage.

At Runda, Margaryan told journalists that they operated a company
called Brotherlinks International. But when the journalists dashed
to the office of the Registrar of Companies to search for its file
of incorporation and directorship, they were denied access to the
documents.

“This file is not available at the moment, you can use this number
(C120905) and come check at a later date,” an officer told the
inquisitive journalists.

Usually, members of the public are allowed to search and peruse files
of registered companies at the Registrar of Societies offices at a
fee of Sh100.

Kenya: We Were Unaware Of Their Presence, Police Say

WE WERE UNAWARE OF THEIR PRESENCE, POLICE SAY
By Cyrus Ombati

Standard, Kenya
March 14 2006

The Kenya Airports Police Unit (Kapu) was not informed of the presence
of the two Armenians who addressed the press at the Jomo Kenyatta
International Airport on Monday morning.

Commandant Moses Nyakwama and his CID counterpart Judy Ndeda said the
unit did not know that the two foreigners were talking to journalists
at the VIP lounge.

Kapu is charged with security matters at all airports in the country
and the unit’s officers are usually informed of any event taking
place at the VIP lounge preserved for top Government officials.

A team of detectives, including Kenya Airports Authority and Kapu
officers, has been told to investigate those who arranged the press
conference.

The team had by last evening interrogated seven KAA employees over
the saga.

“There is still a lot to be investigated and officers need time.

Security officials were not aware of the events then,” said Nyakwama.

The police boss said the team sewould interrogate everyone who was
involved in the press conference.

Some of the members asked if journalists who went to interview the
Armenians got clearance from the KAA security desk.

Kenya: Kalonzo Recounts Meeting With Armenian Duo

KALONZO RECOUNTS MEETING WITH ARMENIAN DUO
By Evelyn Kwamboka and Francis Openda

Standard, Kenya
March 15 2006

Mwingi North MP Kalonzo Musyoka says an Asian businessman introduced
him to the alleged Armenian mercenaries.

“He was accompanied by two persons who were casually dressed. They
were wearing gold chains, rings, bracelets and watches. He introduced
them as businessmen from Dubai,” he said.

Former Cabinet minister Kalonzo Musyoka speaks to reporters at the
Jomo Kenyatta International Airport on arrival from Ethiopia. Pic by
Jennifer Wachie

Musyoka said the two men, who he described as “guests of the
Government”, introduced themselves at the Grand Regency Hotel’s Summit
Club as relatives of the Armenian President.

“One of them introduced himself as a relative to the Armenian President
and that he was intending to vie for the presidency,” Kalonzo said
in a police statement.

The MP jetted into the country on Wednesday afternoon from Ethiopia
and went straight to Kilimani Police Station. He said one of the
men wanted him to introduce him to the Democratic Republic of Congo
President Joseph Kabila.

“He asked whether, as a former Foreign minister, I knew President
Joseph Kabila well and could introduce them to him,” he stated in
his statement.

Musyoka told them that although he knew Kabila, they were not close
friends. After that, Kalonzo said, one of them suggested that they
take a photograph using their camera.

“It occurred to me that the intention of having a photograph with me
was for the purpose of identification and possible elimination,” he
told Nairobi Deputy CID boss, Isaiah Osugo, who recorded the statement.

Kalonzo was accompanied by his lawyer, Mutula Kilonzo, while Orange
Democratic Movement legislators waited outside. He was joined later
at the station by MPs Gideon Moi, Nick Salat, Sammy Weya and Kiema
Kilonzo. Mutula said four police officers had raided Kalonzo’s home
on Tuesday night and demanded to know where his wife was.

The Armenians, Sargsyan Artur and Margaryan Artur, on Monday claimed
Kalonzo had asked them to help him with Sh3 billion and bulletproof
jackets in a bid to overthrow the Government. But the MP denied the
claims, saying he only met them briefly.

“If the statement made by the Armenians is true regarding their
relationship with the Government, the Government should accept and
own up. This is because it is important to live in a transparent way,”
he said.

Musyoka arrived at the station in an escort of three vehicles carrying
officers from the Jomo Kenyatta International Airport.

hp?articleid=37981

http://www.eastandard.net/hm_news/news.p

Kenya: Who Are These Armenians?

WHO ARE THESE ARMENIANS?

Daily Nation, Kenya
March 15 2006

Editorials

For the past two weeks, the country has been gripped by talk about
mercenaries reportedly brought into the country by powerful people
with an improper motive.

Evidence about wrongdoing has been scant and, instead, accusations
and counter-accusations have been flying around, leaving everybody
thoroughly confused.

In the din, nobody has cared to shed any light on the matter, making
it the stuff of suspense thrillers with ominous overtones. When the
issue first came to light, the public thought it was a figment of
someone’s imagination, and that the matter would die as fast it had
cropped up. Instead, the drama has kept heightening, rising to a
pitch with each new day.

It is now critical that we pause and ask some important questions.

The first is: Are there mercenaries in this country? If so, who
brought them here and for what purpose?

So far, two Armenian brothers have come out publicly to declare
that, although they occupy a residence at Nairobi’s Runda estate,
the house which Langata MP Raila Odinga claimed harboured mercenaries,
they are not actually the “dogs of war” being referred to.

More questions than answers

The denial aside, the behaviour of some seemingly powerful people
and the activities surrounding the two brothers raises more questions
than answers.

When they first came out publicly on Monday, the two did so at a
press conference at Nairobi’s Jomo Kenyatta Airport’s VIP lounge,
leading to the question: Whose VIPs are they?

All indications are that the press conference was stage-managed by
influential personalities. For what reason? There never should have
been a need for private businessmen to call the press, ostensibly to
explain their mission in Kenya.

It is also clear that the information provided about the Armenians’
travel details does not add up. There are conflicting stories
that one of them either flew in from Dubai on a commercial flight –
investigations show that his name was never in the passenger manifest –
or that he flew into the country in a private jet.

Again there is no corroborating evidence. No private plane landed
at JKIA at the material time. So, where did he come from and through
which means?

On Tuesday, one of the brothers stopped police officers entering the
Runda residence. In fact, he dared the police to produce a search or
arrest warrant before they could be allowed in.

In ordinary circumstances, although the law forbids them doing so,
police do enter people’s residences, conduct searches and even arrest
them without those documents.

Who are these people?

But, in this case, the police officers were eventually recalled and
the operation shelved. The question is: Who are these people that
the police cannot touch?

Police commissioner Hussein Ali had detailed a senior police officer
to investigate the matter. The way things are going, can Kenyans
realistically expect the police to unravel this mystery?

On the other hand, some people have been trying to make political
capital out of this whole mystery. What is their real interest? And
can they deny, under oath, that they have never had any dealings with
the two who claim to be businessmen?

This country has gone through many crises in recent times and Kenyans
would not want to continue being treated to a bizarre drama of the
nature we are witnessing today.

The people want to focus on important matters with a bearing on
national development, not tantalising sideshows. This is why we ask
the Government to explain the matter, and that can only happen if
thorough investigations are carried out and the matter cleared up,
one way or the other.

The politicians who have loudly spoken about the so-called mercenaries,
starting with Mr Odinga and Mr Kalonzo Musyoka, and any others
who might know anything about the Armenians should provide all the
information they have to police to catalyse the investigations.

From: Emil Lazarian | Ararat NewsPress

Kenya: Now Kalonzo Quizzed Over Armenians

NOW KALONZO QUIZZED OVER ARMENIANS
Story By Bernard Namunane

Daily Nation, Kenya
March 15 2006

Former Cabinet minister Kalonzo Musyoka yesterday said the two
Armenians at the centre of the mercenary row wanted him to introduce
them to Democratic Republic of Congo President Joseph Kabila.

Mr Kalonzo and Mr Musyoka named Nairobi businessman Raju Sanghani as
the person who introduced him to the two foreigners who Lang’ata MP
Raila Odinga claims are mercenaries.

The top Orange Democratic Movement leader was giving details of what
he knows about Mr Artur Sargsyan and Mr Artur Margaryan in a statement
he recorded at Kilimani police station.

Mr Musyoka, who arrived at the Jomo Kenyatta International Airport
from Addis Ababa at 2.40 pm, went straight to the Kilimani CID offices
following a Government order that he records a statement.

He declined to speak to journalists at the airport and said he was
wanted by the police. “I have been informed that the police are after
me. I am going straight to Kilimani police station,” Mr Musyoka,
who was flanked by Mutito MP Kiema Kilonzo, said.

Mr Musyoka emerged from a one-and-a-half hour session with the CID
officer tasked to investigate the mercenaries allegations, Mr Isaiah
Osugo, to state that he has never requested for funding from the
two Armenians.

He said Mr Sanghani introduced the two foreigners, whom he described as
“flamboyantly endowed in gold chains, rings, bracelets and watches”
at the Grand Regency’s Summit Club in late November last year.

“Whilst at the club, businessman Raju Sanghani walked over to where
I was seated accompanied by two persons who were casually dressed
and introduced them as businessmen from Dubai,” Mr Musyoka said.

Mr Sanghani is the former owner of Guilders International Bank,
chairman of Real Motors Group and an estate management firm.

During the 10-minute encounter, Mr Musyoka said one of the two
foreigners introduced himself as a relative of the Armenian President
and that he had set his eyes on a top political seat in his country.

In apparent reference to Mr Sargsyan, he said the Armenian told him of
his business interests in DR Congo and inquired if Mr Musyoka could
use his influence as a former Foreign minister to introduce him to
President Kabila.

“I informed them that I knew President Kabila but was not
well-acquainted with him. That was the end of our discussion,”
narrated the Mwingi North MP.

Contacted last evening, Mr Sanghani confirmed he had introduced Mr
Musyoka to the two men in an “accidental” meeting.

He said the two were associates of a Dubai businessman, Mr Zakher
Omar, a friend he had met in Mumbai, India, last year. Mr Omar deals
in general commodities, steel rolling and real estate development in
Dubai and India.

“He and l met accidentally at the hotel l was staying in and we got
talking. I tried to interest him in investing in Kenya especially in
real estate…”

“Sometime in November he came with two people he introduced as Arthur
and James. He claimed they were members of the “royal” family in
Armenia,” Mr Sanghani said in a telephone interview.

He said that one evening during the three or four days which Mr Omar
and his associates spent in the country, he took them to the Summit
Club in the Grand Regency where they met Mr Musyoka.

“It was a casual, accidental meeting. I introduced them and told Mr
Musyoka that they were members of the Armenian “royal” family.

Indeed, l told him that one of the men was a presidential aspirant. I
also told him that the men were interested in investing in gold and
diamonds in the Democratic Republic of Congo,” Mr Sanghani said.

The conversation lasted a few minutes after which one of the Armenians
requested that Mr Musyoka pose for a photograph with them.

Mr Sanghani said he visited Dubai later that month on his way to
London. “They welcomed me and took me round the place. When l returned
to Kenya sometime in December, they were also here,” he said.

During one of their outings, the “accidentally” ran into Mr Musyoka
at the Serena Hotel. They chatted about the business and the MP asked
them about vehicle importations “which is one of the ventures they
were into”, Mr Sanghani said.

On Monday, Mr Sargsyan told journalists at JKIA that he and his
brother were introduced to Mr Musyoka and Mr Raila Odinga by an Asian
businessman at the Grand Regency hotel.

It was during the meeting, the Armenians claimed, that Mr Musyoka
made a request for Sh3 billion to fund a vote of no-confidence in
the Government, a request they declined.

Instead, Mr Sargsyan said, they agreed to a request by Mr Odinga to
lend him $1.5 million (about Sh108 million).

But yesterday, Mr Musyoka, a former Environment minister, said Mr
Odinga was not in the picture. Instead, he said he was accompanied
by Nairobi businessman Kennedy Ngumbau.

The MP, who was flanked by ODM Members of Parliament Mutula Kilonzo,
Gideon Moi, Nick Salat, Daudi Mwanzia and Sammy Weya, described the
Armenians as “dangerous” people.

“They are people who are absolutely dangerous to Kenyans and the
Government must ensure the security and safety of ODM leaders,”
he said.

Mr Musyoka claimed that the move by the two to take a photo with him
at the hotel came to haunt him three weeks ago after the raid at the
Standard and Kenya Television Network offices.

“It occurred to me after the attack on KTN and the Standard newspapers
in which the said persons were alleged to have been involved, that
the intention of having a photograph with me was for the purpose of
identification and possible elimination.”

Mr Musyoka becomes the second ODM leader, after Mr Odinga, to record
a statement with the police over the mercenary saga. The Lang’ata MP
recorded a statement at Kilimani police station on Monday.

ODM leaders have claimed that the presence of Mr Sargsyan and Mr
Margaryan in the country was known to people at high levels in
Government. They have also claimed that the foreigners were being
given State protection.

But Environment minister Kivutha Kibwana has warned that Mr Odinga
risks being taken to court over the claims of mercenaries in the
country.

Kenya: Raila: ODM To Spill More Beans On The Armenians

RAILA: ODM TO SPILL MORE BEANS ON THE ARMENIANS

Daily Nation, Kenya
March 15 2006

Lang’ata MP Raila Odinga yesterday evening recorded another statement
with police over his claim that the two Armenians currently in the
country are mercenaries.

And he declared that the Orange Democratic Movement would today tell
Kenyans more about the Armenians’ activities and their link to the
Government.

The former Roads minister, who first raised the issue of the
foreigners, said he had gone to give more “urgent information” to an
investigating officer on behalf of the movement.

And he accused the Government of helping the foreigners to concoct
untruths that they had bribed him.

The MP said: “This (lie) is something being concocted by themselves
and the Government.”

In another development, sources said that following Mwingi North MP
Kalonzo Musyoka’s questioning yesterday, police had been asked to go
“slow” on the matter.

The instructions were given as Mr Odinga went to the Kilimani police
station to give what he called “additional, crucial and urgent”
information about the alleged mercenaries.

Mr Odinga was accompanied by his lawyer, Mr Kenneth Marende, who is
also the MP for Emuhaya, during the two and half hours he spent with
the police.

With him were MPs Orwa Ojodeh, Reuben Ndolo and William Omondi.

Mr Odinga, who walked out of the CID office at 7.30pm, said: “We felt
the information that we have is crucially urgent and needed immediate
attention.” He said he had decided to give the police additional
information which, he noted, he had received in the last few days.

Sources said the Liberal Democratic Party leader gave the officers
information on vehicles the Armenian brothers – Artur Sargsyan and
Artur Margaryan – were using and the link they had with powerful
people in the Kibaki Government.

He was also said to have clarified some issues in his first statement.

The Lang’ata MP said that the fact that the foreigners could “concoct
untruths” about him showed that they were up to no good.

“The fact that these characters can concoct statements shows how
dangerous they are,” he said.

“I do not know these characters.”

He maintained that he did not know the two foreigners and dismissed
as rubbish the claim that they had given him Sh108 million in Kenya
and an additional Sh100,000 in Dubai.

Mr Sargsyan and Mr Margaryan have denied being mercenaries, saying
that they are businessmen who are being framed by Mr Odinga so that
he may not pay back the money.

Mr Odinga said he would take legal action against Environment minister
Kivutha Kibwana over his remarks over his link with mercenaries.

He said Prof Kibwana had shown that he (Kibwana) was “an apologist
of one of the most heinous governments” the country had ever had.

After a government of national unity meeting on Tuesday, Prof Kibwana
accused Mr Odinga of acting with impunity by saying that he knew the
presence of mercenaries in the country.

Prof Kibwana questioned how Mr Odinga knew the whereabouts of the
two foreigners if he did not have an intelligence network of his own.

BAKU: US Urges Azerbaijan To Refrain From War

US URGES AZERBAIJAN TO REFRAIN FROM WAR

Assa-Irada, Azerbaijan
March 15 2006

Baku, March 14, AssA-Irada
The United States has said the parties to Upper (Nagorno) Garabagh
conflict should stick to a negotiated settlement, despite the
fruitless outcome of talks between the Azeri and Armenian leaders,
which was followed by Azerbaijan’s threats to launch war to solve
the long-standing dispute.

The resumption of military action will not solve the problem even
in 20 years, said the US co-chair of the mediating OSCE Minsk Group,
Steven Mann, who visited Baku, along with the US Department of State
Assistant Secretary for European and Eurasian Affairs Daniel Fried,
to discuss the Garabagh problem with the top Azerbaijani leadership.

Addressing a news conference upon the results of the visit, Mann
said that although the presidential talks in Rambouillet, France
in February yielded no results, the peace process continues and the
sides are seeking to continue the talks.

“There are issues of concern for both parties that are reflected in
their positions. But the resumption of hostilities would be a tragedy
for both countries. No war will lead to a solution either now or in
20 years.”

The mediator also said that for the conflict to be solved, each side
should be ready to “answer important questions”.

“At the same time, in considering the military option, Azerbaijan
should take into account other factors, such as the importance of
energy projects that will bring profits to the country,” Mann said.

The co-chair continued that both the US government and the
international community supports a settlement strictly through peace
talks. “America is cooperating with Azerbaijan and Armenia and deems
both as friendly nations.”

Asked why the U.S. has not duly assessed Armenia as aggressor,
Mann said such terse questions are frequently asked by Azerbaijanis
as well as representatives of the Armenian Diaspora in the United
States. “But we do not intend to take any sides on these issues and
urge the parties to give preference to peace talks,” Mann said.

Touching on Armenian president Robert Kocharian’s recent statement
that his country may recognize independence of the self-proclaimed
Upper Garabagh republic, the mediator said he is not in favor of
such speculations at the current stage in the negotiations, as such
statements “do nothing to facilitate solving the problem”.

Assistant Secretary Daniel Fried said that during the Baku meetings,
Azerbaijan decisively defended its national interests with regard
to the conflict resolution. “However, our discussions proceeded in
a serious and constructive manner,” he said.

Fried has met with President Ilham Aliyev, Foreign Minister Elmar
Mammadyarov as well as opposition representatives.

“The conclusion we came to is that Azerbaijani representatives have
put forth a strong and resolute stance on the issue,” the Assistant
Secretary said. He reiterated that both parties to the conflict are
interested in solving the protracted dispute.

“We have concluded that Azerbaijanis want to return to their
homeland. We therefore believe that this must happen soon, as a war
would prove disastrous for everyone,” Fried said.

The American official, who is expected to visit Armenia next, said he
would hold intense talks on the Garabagh conflict with its officials
as well. He declined to cite any details, but said he would lay out
certain initiatives.

The news conference was also attended by the US ambassador in Baku
Reno Harnish.

Armenian Conversebank To Prolong Terms Of Mortgage Credits

ARMENIAN CONVERSEBANK TO PROLONG TERMS OF MORTGAGE CREDITS

ARKA News Agency, Armenia
March 14 2006

YEREVAN, March 14. /ARKA/. The Armenian “Conversebank” has announced
the prolongation of terms of mortgage credits up to 10 years.

Formerly the bank issued mortgage credits for a period of up to
seven years. However, the annual interest rate on credits has not
been changed, 13%. The prepayment ranges from 30 to 40 per cent of
the cost of real estate depending on its location in Yerevan.

The “Conversebank” CJSC was incorporated on December 20, 1993. By
December 31, 2005, the bank’s assets had amounted to AMD 41.7bln, total
capital AMD 9bln, net profit AMD 1.7bln, and balance profit AMD 4.3bln.

The crediting of economy makes AMD 16.2bln, the share of consumer
credits being AMD 3.8bln.

Armenian CB Permits Commercial Banks To Take Part In InternationalPa

ARMENIAN CB PERMITS COMMERCIAL BANKS TO TAKE PART IN INTERNATIONAL PAYMENT AND ACCOUNT SYSTEM WESTERN UNION

ARKA News Agency, Armenia
March 14 2006

YEREVAN, March 14. /ARKA/. The Council of the Central Bank of Armenia
permitted Armenian commercial banks to take part in the international
payment system Western Union. The CBA Press Service reported that
this decision was made at the sitting of the CBA Council presided
by the CBA Chairman Tigran Sargsyan. Permission was granted to 14
commercial banks of Armenia.

In February 2006, the CBA Council made a decision to refuse the right
of participation in Western Union money transfer system to commercial
banks due to discrepancies in the WU regulation, revealed during the
examination of commercial banks’ applications, submitted to the CBA.

The CBA Board’s decision is to take effect from March 15, 2006.

Banks were granted the opportunity to submit new applications
for participation in the WU payment system in conformity with the
contractual amendments. The WU system started cooperating with Armenian
banks on a probation basis in 1995. The system has officially been
working in Armenia since 1996.

During the period under review 14 Armenian banks joined the WU
system. In 2005 money transfers effected by Armenian banks by means
of the system amounted to AMD 44.4bln. In 2005 the share of the WU
system in the total amount of money transfers was 16.04% and 19.85%
of their number. ($1 – AMD 452.94).

Deputy Chair Of The Union Of Georgian Armenians Denies Existence OfT

DEPUTY CHAIRMAN OF THE UNION OF GEORGIAN ARMENIANS DENIES EXISTENCE OF THE DANGER OF AN ETHNIC CONFLICT IN THE TSALKA DISTRICT
Source: Svobodny Gruzia (Tbilisi), March 10, 2006, EV

Agency WPS
DEFENSE and SECURITY (Russia)
March 15, 2006 Wednesday

Van Baiburt, Deputy Chairman of the Union of Georgian Armenians,
lawmaker, and Vrastan newspaper editor-in-chief, denies existence of
the danger of ethnic clashes in the Tsalka district. “I do not expect
ethnic clashes in the Tsalka district of Georgia that may follow the
March 9 incident, when Gevork Gevorkjan, 24, was murdered and Karen
Balojan wounded,” Baiburt told journalists at the Georgian parliament
on March 10.

The incident in the district center of Tsalka in East Georgia was
reported by the Press Service of the Interior Ministry on March 10.

What information is available indicates that the incident took place
in a restaurant in central Tsalka the previous day. Officers of the
territorial office of the Interior Ministry of the Kvemo Kartli region
detained five suspects. Investigation is under way. Some Georgian TV
channels report that it was a clash between Gevorkjan and Balojan on
the one hand and several Georgians of Svan origin on the other. All
participants of the incidents were drunk.

Conflicts between the indigenous Armenians and the Georgian settlers
(mostly victims of various natural disasters moved to the district)
flare up in Tsalka every now and then. In the latest period of tension
in spring 2004, the Interior Ministry deployed its special forces
in the district and set up checkpoints in Georgian and Armenian
villages. Law enforcement agencies refer conflicts to mundane issues.