Armenia Fund, Inc.
111 North Jackson St. Ste. 205
Glendale, CA 91206
Tel: 818-243-6222
Fax: 818-243-7222
Contact: Sarkis Kotanjian
[email protected]
PRESS RELEASE
May 12, 2006
Armenia Fund International Board of Trustees Convenes
15th Annual Meeting Highlights Fund’s Unprecedented Growth
Yerevan, Armenia – Armenia Fund’s Board of Trustees’ meeting convened on
Friday, May 5, 2006 in Yerevan. The meeting brings the leadership of all
19 international affiliates of the Fund to assess the progress of the
organization, discuss its financial health and audit reports, as well as
set new goals and priorities for the organization. The governing body,
which is chaired by His Excellency President Robert Kocharian, also
decides the 2006 beneficiary project. The Board is composed of all major
Armenian organization in the Diaspora – essentially forming the only
Pan-Armenian entity tasked with the mission of rebuilding the homeland.
The U.S. Western Region was represented by Chairperson Maria Mehranian
and Executive Director Sarkis Kotanjian.
Prior to the opening of the session, Board members lead a moment of
silence for the victims of Armavia Flight 967. His Holiness Karekin II,
Catholicos of All-Armenians lead the prayer.
On the verge of completion, the Board examined the progress of the
critically important North-South Highway in the Nagorno-Karabakh
Republic. The large-scale infrastructure project remains on schedule for
full completion in early 2007. The project is financially secured thanks
to the 2004 Telethon, which raised a record breaking $11.5 million.
Grant Thornton Amyot, the French-American accounting firm, presented the
Fiscal Year 2005 Financial and Construction audit of the organization.
The process is a two-stage procedure where the firm audits all the
financial statements of the Fund and issues its report. Secondly, the
firm audits the construction procedures and accounting methods of all
projects. Lead auditors from the firm presented the report during the
meeting. `In our opinion, the financial statements give a true and fair
view of the financial position of “Hayastan” All-Armenian Fund as of
December 31, 2005, and of the funds received and expenses incurred and
its cash flows for the year ended in accordance with International
Financial Reporting Standards’, stated Armand Pinarbasi, Managing
Partner of the firm. Per recommendations, the Fund continues to maintain
its internal audit control mechanisms. On a quarterly basis, the Fund’s
financial department prepares financial statement in accordance with
Grant Thornton Amyot’s rigorous recommendations.
During the meeting, Executive Director of the Fund, Mrs. Naira
Melkoumian presented a comprehensive report of the organization. Mrs.
Melkoumian highlighted two major points – the growth of participation
amongst the general Armenian Diaspora at large, notably from the United
States and an increase in the overall number of projects implemented in
Armenia and Nagorno-Karabakh. On an international level, the Fund
registered a 20% growth in income.
The Fund continues to implement projects in all regions of Armenia and
specifically Nagorno-Karabakh. Mrs. Melkoumian also reported on the
progress of the Martakert Regional Development Plan. Currently, the
regional hospital’s new design stage is on the verge of completion. The
effort is being spearheaded by the U.S. Western Region of the Fund.
Construction of a water pipeline network will commence by the end of
June. In addition, the agriculture development plan is nearing its
implementation stage with the introduction of technology packages to
local farmers in the region. President Kocharian remarked that Armenia
Fund is a well-established organization that has implemented countless
projects `of vital importance to the development of Armenia’. Indeed,
the organization, over the past decade has implemented more than $140
million of infrastructure development projects.
`40% growth for any given organization, whether non-profit or corporate,
is indeed a milestone. Armenia Fund, Inc., in the United States, has
been the driving force behind this growth, notably in the number of
donors. The organization’s transparency, track record, and history of
accomplishments continue as a testament to the organization’s viability
and growth’, stated U.S. Western Region Chairperson Maria Mehranian.
Armenia Fund in the U.S. Western Region had registered a 40% growth in
total pledges received, marking an all time high in terms of public
grassroots participation. `I would like to add, that Armenia Fund, Inc.
will continue its public outreach campaigns on a larger scale and this
will certainly reflect in the months prior to the Telethon,’ furthered
Mehranian. Indeed, the international Telethon has been a very viable
fundraising method for Armenia Fund. At the approval of the Board, the
Fund will pursue a wider public outreach program not only in the United
States, but internationally with a focus on Europe and the Middle East.
The meeting discussed the quality of construction and the necessary
steps and processes that need to be adopted to ensure its high standards
for all Armenia Fund projects. A decision was made to take all necessary
measures and set up a process to enhance the quality control standards.
The first step has already been taken — a large scale monitoring
program has been implemented in the first months of 2006.
`Construction is a complicated process that requires specific guidelines
and distinct procedures. Effective Program Management, Construction
Management and Quality Control are integral parts of a construction
process everywhere in the world. We have to bear in mind that Western
standards and construction codes are still not well established in
Armenia and we need to provide them with all the resources we have. The
Fund has done an exceptional job in meeting these challenges and what we
need to give them is assistance instead of criticism,’ stated Maria
Mehranian, `I know this first hand from urban planning and
infrastructure development experience that I personally have in the
United States,’ furthered Mehranian.
The Board meeting also appointed U.S. based attorney Mark Geragos to the
International Board of Trustees of Armenia Fund. Geragos and his aides
were at the meeting. `I am extremely impressed by the quality of the
Board, the affiliates and overall track record of Armenia Fund. This is
a premier organization that will continue its vital programs in
infrastructure development in Armenia and Nagorno-Karabakh. I am proud
to be on board with this organization’, stated Geragos at the press
conference following the meeting. Geragos will replace retiring Board
member Mihran Aghbabian, who was one of the driving forces of the Fund
since its early years.
Prior to the Board of Trustees Meeting, Armenia Fund and its affiliates
met at the American University of Armenia Business Center to discuss
wider inter-affiliate cooperation on all fronts. `The meeting was indeed
productive, bringing forth opinions and ideas from all corners of the
world. It is very interesting to hear the concerns of our compatriots
living outside of the United States.’, stated Sarkis Kotanjian,
Executive Director of Armenia Fund – U.S. Western Region.
Armenia Fund, Inc., is a non-profit 501(c)(3) tax-exempt corporation
established in 1994 to facilitate large-scale humanitarian and
infrastructure development assistance to Armenia and Nagorno Karabakh.
Armenia Fund, Inc. is the U.S. Western Region affiliate of `Hayastan’
All-Armenian Fund. Tax ID# 95-4485698

MINISTER FOR SCIENCE AND EDUCATION IS RESIGNING
Yerevan, May 12. ArmInfo. Education and Science Minister of Armenia,
Orinats Yerkir party member Sergo Eritsian is resigning is office,
reports the Ministry.
Previously it was announced that Orinats Yerkir made a decision about
resignation of party leader Arthur Bagdasarian from the office of the
Speaker of the National Assembly and withdrawal of party member
Ministers from the Government. Minister for Culture and Youth Affairs
Gevorg Gevorgian stated his intention to remain in the office as he is
not a member of Orinats Yerkir, although his candidature as proposed
by that party. Thus, only Sergo Eritsian remained true to the party
and followed the example of Arthur Bagdasarian.

ARTUR BAGHDASARIAN:ATMOSPHERE OF FEAR RULES IN ARMENIA
Yerevan, May 12. ArmInfo. The large scale withdrawal of the
deputy-entrepreneurs from “Orinats Yerkir” party is conditioned by the
atmosphere of fear that rules in Armenia. Artur Baghdasarian, leader
of “OY” party, speaker of RA National Assembly, stated this at today’s
press conference.
“I do not blame the deputies who left our party, as their decision was
conditioned by fear. The atmosphere in the republic frightened these
people so much that they hurried to leave our party, as soon as they
heard of the contradictions between me and RA President,” he said.

ARTHUR BAGDASARIAN WELCOMES THE CANDIDATURE OF TIGRAN TOROSIAN TO THE
OFFICE OF THE SPEAKER
Yerevan, May 12. ArmInfo. On a press conference at the National
Assembly Arthur Bagdasarian said that he welcomes the candidature of
Vice Speaker Tigran Torosian for the office of the Speaker of the
Armenian Parliament.
The opinion of Tigran Torosian himself is not known yet, as the Vice
Speaker is now on an international conference in Bruxelles. The second
possible candidate is Dashnaktsutiun party member Vice Speaker Vahan
Hovhannissian, who refused to make comments on the situation. Another
possible candidate Karen Karapetian, ‘People’s Deputy’ group member
declined the proposition to take the office.

‘ORINATS YERKIR’ PARTY WILL JOIN THE OPPOSITION
Yerevan, May 12. ArmInfo. After leaving the ruling Coalition the
Orinats Yerkir (Country of Law) party will take its own way and join
the opposition, said on a press conference at the National Assembly
Arthur Bagdasarian, leader of the party at the same time admitting
that the opposition bloc possibly will not welcome that.
Arthur Bagdasarian said that on May 22 he will submit the parliament
his application of resigning his office. Speaking about the today
meeting with the coalition representatives he refused to say anything
of the Presidents’ and Dashnaktsutiun party members’ reaction to
Orinats Yerkir’s decision to leave the Coalition. Mr. Bagdasarian
explained this decision by disagreement of the ruling parties on three
main topics – inner political, social-economic and external political
issues. He admitted that he could remain in the office of the Speaker
even after withdrawal from the Coalition, but he said he is morally
obliged to resign.
Bagdasarian assured that Orinats Yerkir has ever condemned and will
always condemn the negative occurrences in Armenia – corruption,
criminal in economy, privatization of state property, etc. He alleged
that Orinats Yerkir members never abused their authority to their
personal benefit although they had the opportunity. ‘Orinats Yerkir
has ever honestly told the truth and has ever been criticized by those
whose strife against those vices was only fiction. We are determined
to work hard for the progress of Armenia. Our device is “For the
People and with the People”, said the party leader. –

THERE NOTHING EXTRAORDINARY IN ORINATS YERKIR’S WITHDRAWAL FROM RULING
COALITION: ARMENIAN DM
Yerevan, May 12. ArmInfo. There is nothing extraordinary in the
Orinats Yerkir party’s withdrawal from the ruling coalition and one
should not look for any implication, says Armenia’s DM Serzh Sargsyan.
He says that the coalition was set up in 2003 and now one party has
decided to withdraw because of differences with the other two
ones. Sargsyan refutes the reports that he took part in the formation
of Orinats Yerkir and that the authorities are pressuring the
businessmen leaving the party. They joined the party for their
personal purposes and now they are leaving it because of differences
with the authorities, says Sargsyan.
Asked if he considers Artur Bagdassaryan’s resignation and OY’s
withdrawal as his victory over Bagdassaryan, Sargsyan says that one
better ask this question to Bagdassaryan. “I didn’t fight with him,”
says Sargsyan.

ARTUR BAGHDASARIAN DOESN’T EXCLUDE HE WILL RUN FOR PRESIDENTIAL
ELECTIONS IN 2008
Yerevan, May 12. ArmInfo. Artur Baghdasarian, leader of “Orinats
Yerkir” party, speaker of RA National Assembly, doesn’t exclude that
he will run for the Presidential Elections in 2008. He stated about
this at today’s press conference.
At the same time, he emphasized that the resources for carrying out
preliminary planned elections are exhausted. “Armenia should spare no
efforts to carry out Parliamentary and Presidential Elections in 2007-
2008 in accordance with the European standards. My party will
consistently work in that direction,” Baghdasarian said.
It’s worth mentioning that Baghdasarian explained the decision to
withdraw the coalition by deepening contradictions among the coalition
parties and constant pressure on his party.

ARMENIA MUST INTEGRATE WITH THE NATO MAINTAINING FRIENDLY RELATIONS
WITH RUSSIA
Yerevan, May 12. ArmInfo. ‘I do not think that my resignation will
influence external policy of Armenia. Moreover, I do not think that it
will spoil the Armenian-French relations,’ said on a press conference
at the National Assembly Arthur Bagdasarian, leader of the party at
the same time admitting that the opposition bloc possibly will not
welcome that.
Nr. Bagdasarian added that Orinats Yerkir has political contacts
abroad. He said that his party stands for Armenia’s integration with
the NATO and maintaining friendly relations with Russia. Integration
with Europe and the EU in particular is the only way for Armenia, he
said. The Speaker added that this position on foreign policy was one
of the causes of the breakdown of the alliance with Dashnaktsutiun and
the Republican parties.

RA CULTURE MINISTER BELIEVS THAT “ORINATS YERKIR” PARTY IS NO MORE
COMPETENT FOR DECISION TO RECALL HIM
Yerevan, May 12. ArmInfo. “Though the portfolio of Culture Minister
was handed to “Orinats Yerkir” party, but I am a non-party person and
the cultural figures put forward my candidacy,” Gevorg Gevorgian, RA
Culture Minister, said this in the interview to ArmInfo.
He emphasized that he never clung to the minister’s portfolio and
agreed to occupy this post for the sake of the development of the
sphere. “I am ready to continue restoration of Armenia’s fame as a
country of highly developed culture,” he said. Besides, he said that
there is still much to do in that direction.
It’s worth mentioning that in the course of one of the government
sittings, RA PM Andranik Margarian said that Mr. Gevorgian is a person
who managed to do a lot for the restoration of the cultural sphere in
a couple of months.
Gevorgian managed to return the edifices of the theatres that were
privatized earlier through the court. Today, a number of cultural
figures of Armenia stated about their support to Gevorgian, in the
interview to ArmInfo.
From: Emil Lazarian | Ararat NewsPress

RA PRESIDENT:RECENT EVENTS WILL YIELD NO HOME POLITICAL CRISIS IN ARMENIA
Yerevan, May 12. ArmInfo. RA President Robert Kocharian quietly treats
the withdrawal of “Orinats Yerkir ” party from coalition, as well as
the future resignation of Artur Baghdasarian, Speaker of RA National
Assembly. Victor Soghomonian, Press Secretary of RA President, told
ArmInfo correspondent about this.
He said that a change in the structure of the coalition is a normal
development for any civilized country. Soghomonian said that there was
nothing extraordinary in that withdrawal, especially, if we take into
account the existing contradictions within the coalition. At the same
time, he expressed confidence that the recent events will yield no
home political crisis in Armenia. Soghomonian added that “the
divorce” of the coalition was quite civilized and the ARFD and the
Republican Party will continue their activities within the coalition
memorandum. He stated that after the certain changes conditioned by
the recent events, both RA Parliament and RA Government will continue
their common activities.
From: Emil Lazarian | Ararat NewsPress