I know I posted something on this subject before, but since this was written by uncle Osheen, I felt that by knowing him my whole life, I should repost it just to make sure you hear what he has to say on this subject.
The Armenian Observer, 2 June 2004
As We See It
By Prof. Osheen Keshishian
Recently I told a friend: "Did you know that the Armenian government
Sold the AGBU-sponsored and donated cold storage facility for $150,000?"
The answer was: "What else is new? Isn't that routine?"
For some people the sale of the Gumri (Armenia) cold food storage facility did not come as a surprise because for months rumors were circulating in Armenia and the Diaspora about the transfer of ownership. But the real surprise was the price tag: $150,000! A storage facility which cost $5 million to build...
It's not hard to figure out -- the facility was sold for 3% of it's value... What a sham! And all this, as they say, in broad daylight. I would have bid had I known it was on the auction block. Did anyone else get a chance to bid?
The 10,000-ton cold storage facility was built by Intercool, a renowned Danish company, for $5 million. The Armenian General Benevolent Union
(AGBU) raised the money and built the facility following the devastating 1988 earthquake with the hope that food will be stored in the summer so that during the harsh winter season in this northern region of Armenia, people will have something to eat. What a great idea it was and the community quickly raised the funds. Unfortunately, the facility did not function for a while because of the energy crisis.
Hagop Avedikian, editor of the Yerevan-based Azg daily and Tatul Hagopian, a writer, in a signed article revealed some interesting details.
The Minister of Commerce and Industry, Garen Jeshmaridian (the last name literally means "truth-teller") in a letter to the writers states: "I am informing you that Gumri's cold storage facility was on the list of the denationalization program of 1998-2000 but procedures were not initiated. At the same time I am informing you that by decision of the court, dated April 18, 2002, the cold storage facility has been declared non-solvent and on March 12, 2003, the entire facility was sold at auction to the Gechor company."
Non-solvency in Armenia means the enterprise did not pay taxes. Since it was a gift to the government of Armenia, and belonged to the government, then who collects taxes and from whom? Or, who pays taxes to whom? Probably, you collect taxes from... yourself? Does this make sense?
Technically, the AGBU cannot make an issue out of this because it was given as a gift and the receiver can do whatever he wants with it. Right? But as I understand, and I may be slightly wrong, if a facility is sold in Armenia by the government, the donor of the facility should have first option to bid on the entity. Just like the 51% stockholder in an enterprise in Armenia is given the opportunity to buy the rest of the stocks.
The law is there, and I am not sure if anyone has enforced it. On the contrary, several Diasporan Armenians have lost their shirts (maybe not their entire shirts, only their sleeves...)
This is a serious matter, and if it is not clarified, relations could spiral downward and I think we should not be satisfied with the worn-out statement that "Armenia is a new country. Give it a chance." No band-aid solutions, please.
There are laws enacted in Armenia. But, unfortunately, they are not enforced. The government has only selectively enforced the laws, presenting an opportunity to people to abuse their authority and position, whether related to human rights or economic graft. US senior State Department official, Ambassador Carlos Pascual only recently said that the Armenian Government's human rights record remains poor.
The AGBU was planning to invest money in Armenia in the near future. The organization should think twice (or three times) before taking new steps.
The Armenian Observer, 2 June 2004
As We See It
By Prof. Osheen Keshishian
Recently I told a friend: "Did you know that the Armenian government
Sold the AGBU-sponsored and donated cold storage facility for $150,000?"
The answer was: "What else is new? Isn't that routine?"
For some people the sale of the Gumri (Armenia) cold food storage facility did not come as a surprise because for months rumors were circulating in Armenia and the Diaspora about the transfer of ownership. But the real surprise was the price tag: $150,000! A storage facility which cost $5 million to build...
It's not hard to figure out -- the facility was sold for 3% of it's value... What a sham! And all this, as they say, in broad daylight. I would have bid had I known it was on the auction block. Did anyone else get a chance to bid?
The 10,000-ton cold storage facility was built by Intercool, a renowned Danish company, for $5 million. The Armenian General Benevolent Union
(AGBU) raised the money and built the facility following the devastating 1988 earthquake with the hope that food will be stored in the summer so that during the harsh winter season in this northern region of Armenia, people will have something to eat. What a great idea it was and the community quickly raised the funds. Unfortunately, the facility did not function for a while because of the energy crisis.
Hagop Avedikian, editor of the Yerevan-based Azg daily and Tatul Hagopian, a writer, in a signed article revealed some interesting details.
The Minister of Commerce and Industry, Garen Jeshmaridian (the last name literally means "truth-teller") in a letter to the writers states: "I am informing you that Gumri's cold storage facility was on the list of the denationalization program of 1998-2000 but procedures were not initiated. At the same time I am informing you that by decision of the court, dated April 18, 2002, the cold storage facility has been declared non-solvent and on March 12, 2003, the entire facility was sold at auction to the Gechor company."
Non-solvency in Armenia means the enterprise did not pay taxes. Since it was a gift to the government of Armenia, and belonged to the government, then who collects taxes and from whom? Or, who pays taxes to whom? Probably, you collect taxes from... yourself? Does this make sense?
Technically, the AGBU cannot make an issue out of this because it was given as a gift and the receiver can do whatever he wants with it. Right? But as I understand, and I may be slightly wrong, if a facility is sold in Armenia by the government, the donor of the facility should have first option to bid on the entity. Just like the 51% stockholder in an enterprise in Armenia is given the opportunity to buy the rest of the stocks.
The law is there, and I am not sure if anyone has enforced it. On the contrary, several Diasporan Armenians have lost their shirts (maybe not their entire shirts, only their sleeves...)
This is a serious matter, and if it is not clarified, relations could spiral downward and I think we should not be satisfied with the worn-out statement that "Armenia is a new country. Give it a chance." No band-aid solutions, please.
There are laws enacted in Armenia. But, unfortunately, they are not enforced. The government has only selectively enforced the laws, presenting an opportunity to people to abuse their authority and position, whether related to human rights or economic graft. US senior State Department official, Ambassador Carlos Pascual only recently said that the Armenian Government's human rights record remains poor.
The AGBU was planning to invest money in Armenia in the near future. The organization should think twice (or three times) before taking new steps.
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