EURASIA INSIGHT February 14, 2004

ARMENIA STRUGGLES TO STAMP OUT CORRUPTION

Haroutiun Khachatrian: 2/12/04

Striving to enhance its business environment, Armenia has unveiled a high-profile government strategy to stamp out corruption. Though ambitious in scope, some civil society advocates in Armenia caution that vague implementation mechanisms could cause the anti-corruption drive to stall.

Like many former Soviet republics, Armenia has struggled to over comecorruption as it strives to reconstruct its economy. In 2003, the international corruption watchdog Transparency International gave Armenia one of the best ratings among CIS members, but noted that corruption was "pervasive" throughout the country. Along with other factors, corruption has damaged Armenia's ability to attract foreign investment, which is needed to maintain economic growth. According to government statistics, the Armenian economy expanded at a 13.9 percent rate in 2003.

Pressured by international financial organizations to address its graft problems, Armenia began work in January 2002 on an anti-corruption blueprint. Experts from the World Bank, the International Monetary Fund, the Council of Europe and the Organization for Security and Cooperation in Europe consulted on the policy, and the World Bank extended a $300,000 grant to finance preparatory work. Prime Minister Andranik Markarian made the final, 70-page plan public on January 17. It envisions a three-year implementation period.

A wide-ranging legislative agenda lies at the core of the program. By 2007, over 90 proposed pieces of legislation are expected to be in place, guiding anti-corruption efforts. Among the envisioned laws are acts to establish a witness-protection program, rate the creditworthiness of financial institutions, block money-laundering, and promote a transparent judicial system. Some anti-corruption measures - such as rules for state tenders, and an independent commission to oversee most civil service appointments – have already been enacted.

Political corruption is addressed only sparingly in the government plan. After charges of vote-rigging marred parliamentary and presidential elections in 2003, this is a sensitive topic for Armenia's government. [For background see the Eurasia Insight archive]. Two new measures call for enhanced responsibilities for local representative bodies, and the reform of the election system. A third measure on campaign finance reform was passed last year by Armenia's National Assembly.

The plan has received skeptical reviews from civil society activists. Some observers say the program's lack of provisions for implementation represents a serious handicap. It is also vague when it comes to ensuring proper oversight of state-agency actions, Amaliya Kostanian, director of the Center for Regional Development, a Transparency International partner, told the ArmInfo news service. Some officials have called for the establishment of a special anti-corruption agency. But many NGO activists and others question the need for such a state body.

The government plan foresees only a limited role for non-governmental organizations (NGOs) in the anti-corruption drive. Only a handful of the anti-corruption programs allows for NGO involvement, drawing criticism from Kostanian and other civil society activists.

Other observers are also questioning the government's selective definition of corruption. For example, Armenia's army escapes all mention in the government blueprint, noted Noyan Tapan news agency analyst Robert Yegian. Meanwhile, bribe-taking for admission to university or to a state-run hospital is given particular attention.

Kostanian also questioned the program's priorities. Its focus lies primarily on customs, tax services and the courts, Kostanian said. No attention has been given to the use or misuse of government funds during elections. The program additionally does not address the possibility of corruption amid a response to a natural disaster. Given that the country is earthquake prone, such contingency plans should be in place, NGO representatives say.

In unveiling the program, Prime Minister Markarian stated that the government recognizes the threat that official corruption poses to Armenia's stable development. But some high-placed officials appear reluctant to risk publicly acknowledging that corrupt practices are pervasive in government. In an interview published in the Haykakan Zhamanak daily, Armenia's prosecutor general, deputy head of police, National Assembly vice-speaker and other influential government officials all maintained that corruption does not exist in their areas of government.

At present, there appears to be little domestic stimulus that would force President Robert Kocharian's administration to undertake efforts to investigate and eliminate official corruption. Armenia's political opposition, though vocal, has proven fractious, and thus unable to exert steady pressure on the administration.

At the same time, Armenia's government is facing growing pressure from outside to root out corruption. On January 17, Armenia officially joined the European anti-corruption organization GRECO. In June, the EU is expected to mull whether to include Georgia, Armenia and Azerbaijan in a group of countries with which it is stepping up trade and investment ties as the bloc pushes eastward.

Many Armenians doubt whether the full-extent of the program will ever be implemented. A poll conducted in 2003 by Transparency International indicated that 67 percent of Armenians consider corruption a widespread problem in everyday life. Public cynicism about correcting existing problems remains high.

"Armenia's tragedy has not been the adoption of laws," commented Hranush Kharatian, board member of the National Civil Initiative, a non-governmental organization, "but the fact that many of them do not work."


Editor's Note: Haroutiun Khachatrian is a Yerevan-based writer specializing in economic and political affairs.

For the first 45 minutes of my day, I was dealing with police stops. What a pain and 2 of the 3 stops were clearly unjustified and ended without any conflict.

The one stop that I really didn’t care for took place in the 40 kilometer and hour zone where I was clocking the American Embassy jeep doing 120. Today I was going 50 and got stopped.

The cop asked me for my doctument and after determining that I was wrong and me telling him to write me a ticket, he told me that it was not that simple, as my license was not valid in Armenia.

He asked me to step from the car and talk to his chief, who painted me to be Armenia’s 10 most wanted and was ready to impound my car.

I told him I didn’t understand how my license was not valid, since last week they wrote me a ticket. He said he didn’t understand this eighter and what they did was wrong.

I explained to him that his chief had decided last year that my license was valid in Armenia and he his chief was right at that time, but now Armenia is a member of the EU (when did this happen?) and now they have a whole other set of laws that they have to follow.

They finally asked me what I do here and after telling me, they both smiled, gave me back my documents and sent me on my way.

I’m really a bit confused. I mean I was driving 10 kilometers over the speed limit, don’t have a valid license and am clearly criminal material and they let me go. Go figure.

Today I also had a phone call from Karabagh Telecom about me reaching my limit on my cell phone and supositly have charged up 26,000 dram on my cell phone. I was really confused, since I paid my cell phone bill early just before leaving for Armenia, though I could not figure how I talked that much. On top of that, my accountant paid an additional 27,000 dram after I left. I asked the woman calling me when the last time I charged anything on my phone and was told Feb. 5th. I told her I don’t think so, something is wrong, as I’ve been in Armenia since the 30th of Jan. My accountant said that we have to review all my past bills, as we have clearly been over charged. This should be interesting how this has happened.

As for weather in Yerevan, it’s slush right now. Not happy weather.

March is tree-planting month in Yerevan

The following article was published in the Armenian version of hetq in March 2003. Since then, things have only gotten worse.

General Haykaz Baghmanyan's carrot-colored tufa house, with its garden and surrounding wall, sits up high, dominating this neighborhood that promises to become an exclusive compound for generals. Ordinary people who live nearby, in houses and apartment buildings, say the general's house was built by soldiers. Another general, Seyran Saroyan, is also likely to use Armenia's armed forces to build his new house. There's even a third general, building a third house. We managed to find out that he's from Vanadzor, but nobody dared tell us his name.

The large holes and newly uprooted tree stumps indicate that this plot has been sold as well. It looks as if the owner will soon cut down the remaining trees -- their trunks are marked with x's. We gather that this plot has been given either to President Robert Kocharyan's brother-in-law or to his sister. Everyone we talked to in the neighborhood mentioned Kocharyan's name.

"This land does not lie within the park," explains the chief architect of Yerevan, Narek Sargisyan. And indeed it doesn't, according to the general layout of Yerevan. But that's because even though the land is covered with trees and greenery, whoever drew the limits of the city parks chose not to include it.

The chief architect says people planted trees in vacant undeveloped land which was envisaged in the city plan for development and paved roads. After
the development work is done and Northern Avenue is built, all that will be left of 30,000 square meters of forest is a 3,000 square meter strip along Azatutian Avenue, perhaps to keep these fancy mansions out of sight.

Speaking of being out of sight, city land is supposed to be sold through an open tender. But of course in this case, no tender was held. Who would subject the appetites of General Baghmanyan, General Saroyan and a certain relative of President to a tender?

After the land was given away, they started cutting down trees, and the park
watchman, who had tended the trees for thirty years, had a heart attack. The local playground was leveled and is now a construction site.

"There was never a playground here," says Narek Sargysyan. "There was a meadow here, but no organized sports facilities... You newspapers always look for the negative. There is nothing wrong here. The city doesn't have a budget, we have to procure resources in order to build anything," he continues. But instead of "procuring resources" through an open tender they just give this land away.

"In just two years you will witness the creation of a very nice new park here," Sarkisyan tell us, sharing his plans for the future of the park. In other words, in just two years, there will be saplings in place of the
40- to 50-year old trees. We say 40-50 years old, but people who live here insist, "They were planted some 100 years ago. We have lived here for 40 or
50 years ourselves. There was a thick forest here, kids were afraid to walk through it alone".

Soon the kids won't be able to walk here at all -- it'll be private property, and they'll be trespassing.

And the trees that are still standing have no idea that this is not a park -- they go on making oxygen for this suffocating city. The city, however, understands the mistake, and will soon correct it.

Edik Baghdasaryan, Arevhat Grigoryan

Though this may take a bit to load up, this seems to draw a clear picture of what has and is happening in Iraq. http://www.bushflash.com/thanks.html

America pushing it’s weight around in Armenia once again

As an “American”, I hate to see diplomatic immunity being a reason someone thinks they are beyond the law.

Today while driving into Yerevan from Lake Sevan, I was passed by a American Embassy Chevy 4X4 license number 01 D36 ARM, who was driving way beyond the speed limit and weaving in and out of traffic. At one point, the jeep was going 120 kilometers an hour in a zone that had signs that set the limit at 40 kilometers. This encounter took place at 13:45, a time where many children could potentially be crossing the street. A couple of days before I had seen an accident in that same area where the Niva 4x4 that was involved, if there was anyone sitting in the passengers seat was probably critically injured if not killed.

I happened to talk to Raffi Kojian a couple of hours after this encounter to see if he had an influence in informing the Ambassador of this and to warn the drivers to slow down a bit. He told me he would do what he could and told me that our conversation was being recorded, which in this case I was happy to hear so those that need to know could hear it straight from my mouth.

As American citizen, I feel that such aggressive behavior from American Embassy automobiles gives the natives the wrong impression of who and what America is in the region. It almost gives the impression that they think they are kings and own our country, which I’m sure is not a message they would want to be sending out.

Since there was only the driver in the jeep, I’m sure that it was just a local driver who was using his immunity to drive as he likes. Mr. Ambassador, please deal with this issue as the next time I encounter such driving, I’ll videotape it, confront the driver of the car and then publicly embarrass him/her and the embassy.

Today’s log is going to be about my run inn’s with the law today, since other than taking a drive up towards Sevan, hooking up with DerHova (Harout) and going out for Mexican food at the best Mexican restaurant in Yerevan, Cactus, I really didn’t do much today.

On my way back from Sevan and coming into Yerevan, the traffic police checkpoint one passes on the way in, I was the last car in a group of cars, going the speed limit and so on, I get waved down by the traffic cops. I look to the cop, do the Armenian hand signal which asks what’s up and kept on driving. The cop got in his Niva (Soviet made Jeep) and came after me.

I drove on like nothing had happened and pulled into Dodi Gago Dzaroogyan’s gas station, which is located below is mansion that looks like a very large museum and has a church next to it that he built since God gave him a son.

The cop car didn’t enter the gas station and waited on the road as I pulled up and filled my car with 98 octane gas and as the attendants were filling I asked them how they were, which they asked me where my car was from and me telling them Martuni.

It turns out that one of the attendant’s served his military duty at my neighbor’s base in Martuni and told me what a great commander he was. Another of the attendant’s also served in Martuni and was good friends with someone I know. They told me to tell their friend hello and also sent warm wishes to my neighbor. I finished, paid and drove on.

I got onto the street and stopped my car, where the traffic cop came up to my car (badge #0723). I gave him my documents. He asked me why I had not stopped for him and said I had not done anything wrong, but he just wanted to check my documents. I told him that he must be new to that post and for the most part, people don’t stop my car. He said he was new.

By this time, the attendants came running to my rescue and started to threaten the cops, telling them to leave me alone and give back the documents or else they would be sorry. The one cop that was rude at first started to refer to me at the “esteemed” one and if I would be so kind to drive back with him to the check point? I agreed and as I was pulling away, the attendants told me if I had any problems, they were here and would come up and take care of the cops so they understood that they should not bother me. Wow, Mafia protection and from one of the most powerful and respected clans.

I followed the police Niva to the check-point, where the cops rushed up to their chief to fill him in and I’m sure told him what Gago’s had said to them and what they would do if they harassed me.

I walked up to the chief and introduced myself. He said a few words in English and looked over my California driver’s license and my car documents. During this time, the cops asked the chief for permission to return to their duty of stopping cars.

The chief, who I didn’t get his name from asked me if I was a native of Martuni, since my car is registered to me and my address is my home in Martuni. As far as I understand the law (maybe there has been changes, but 5 years ago the law read this way), I’m not allowed to own a car, but since this is Armenia, anything seems to go for me. I told him no, I was born in California.

He asked me what I do here and I told him I’m an investigator and investigate the government. He asked me in what way I investigate and I told him I investigate corruption and the problem of bribery. At that point, he stopped looking me in the eyes as he changed the subject and told me about his nephew who had been to New York 3 times and had returned without breaking the law and now it has been impossible to get a visa.

He finished by saying in English “Ara Manoogian is a very good boy. Give me $100 and then go” and started to laugh. I took my documents from him and drove off. I guess if the chief was not around, they would have let me go at the gas station.

As I was coming into Yerevan and had just passed the Zoo, I got stopped and the cop told me that I was speeding and was supposedly going 75kmh and if I want, I can look to see what the radar gun reads.

I told him he was wrong and whatever the radar gun reads, was not from my car and I was not going over 60kmh. He started to argue with me and I told him to stop his arguing and if he feels I’ve broken the law, to write me a ticket.

He noticed the other ticket that was written on me, that was with my documents. He asked if I had broken the law and I said yes, and for that reason they wrote the ticket. I said he can do the same, but in this case he is wrong and they will believe me over him.

He got really upset and told me that he does not have the nerves to deal with me and rudely handed back my documents. I drove on as he kept looking to me, as if he was waiting for me to fight with him.

The last run in with the law happened a little while ago as I was driving home and in front of me was a silver Mercedes G500 Jeep (one of those ugly jeeps made for NATO forces), license number 100oo10. As I was following this jeep, another car came right up behind me very close, but never flashed his lights as to pass, so I just kept driving. At one point I had a chance to pull over to the right side of the road and the car passed. This car was a black Mercedes G500 Jeep, license number 09so007. As he passed, he looked to me and looked to be swearing at me. From what I remember, I’ve seen this jeep before and was told that it belongs to some big-wig at the KGB or Ministry of Internal Affairs.

I followed the two jeeps and kept up with them as we passed a police check-point going 90kmh and at some point the road split and I took one road and them another.

It looks like our work is again producing positive results and some of our recommendations have been taken seriously and may even be adopted into law. It looks like we have found one of the real ways to make changes in Armenia and make the law work in our favor.

Radio Free Europe / Radio Liberty
5 February 2004

Government Approves More Curbs On Foreign Adoptions

By Atom Markarian and Emil Danielyan

The government put forward Thursday additional restrictions on the controversial adoptions of Armenian children by foreigners which would force the latter to deal directly with relevant state bodies without any third-party involvement.

The provision is contained in a draft "family code" approved by ministers. If endorsed by parliament, it could further complicate foreign adoptions in Armenia, the integrity of which has been called into question over the past year.

"The bill bans intermediary activity in the area of adoptions, which was very commonplace until now," Deputy Justice Minister Gevorg Malkhasian told reporters, describing the proposed change as "very important."

Malkhasian said anyone who represents foreign nationals in the adoption of local orphans for financial or other motives will be liable for administrative and even criminal punishment. "This will be considered an illegal activity, and those who engage in it will be held accountable," he said.

The move, which requires the parliament's approval, is the latest in a series of government actions complicating the foreign adoptions which hit a record-high number of 76 last year. The toughening of the adoption rules began in late December with a government decision allowing foreign couples to have an Armenian orphan only after the state exhausts all possibilities of finding the latter local parents. And on January 15 the government approved a scheme offering local families financial incentives to take in and raise children from state-run orphanages until they come of age.

The foreigners, most of them U.S. citizens of Armenian descent, normally arrange the adoptions through local "facilitators" who either work independently or in conjunction with private American agencies. The facilitators reportedly charge between $9,000 and $13,000 per child – a suspiciously high figure given the much lower cost of the entire paperwork inside Armenia.

An RFE/RL report last June suggested that a large part of the money may be spent on bribes to Armenian officials involved in the process. Social Affairs Minister Aghvan Vartanian asked state prosecutors at the time to look into the report, and it was his ministry that subsequently floated the idea of removing adoption intermediaries.

Malkhasian said the proposed family legislation would also mandate additional requirements to potential foreign adoptive parents and obligate the state to keep track of orphans already taken abroad. "Many people worry about what happens to children adopted abroad. After the passage of the code we will adopt rules and our diplomatic missions will be obliged to follow our children's fate," he said.

The code would amend rule for local adoptions as well, with the ultimate authority to approve or reject them to be transferred from local governments to the courts of justice. The central government, however, will continue to have a final say on foreign adoptions.

Still in Yerevan and very busy. Meeting with lots of people and just moving forward with my work. There are so many more people to meet and it seems that one meeting leads to another and then another. It seems never ending, but when all is said and done, we should get some very big and very positive results.

The weather here this morning was cold, but since this is winter, I guess I should expect such weather.

I talked to the mayor of Martuni this morning and he told me that the grader to level our road will come in the morning.

Since being here, I’ve had a few police stops, one that resulted in my hitting a traffic cop with my car. I was written up for a ticket on that stop which is going to cost me 2,000 dram (less than $4). When all was said and done, the cop that wrote me up and figured out who I was, applogized for writing the ticket and asked me if I’m upset about him writing the ticket? I told him no, I’m very happy that he’s doing his job and following the law. The cop who I hit, told me that I need to have my side-view mirrors shortened by 4 inches.

Anyway, I’ve got lots of e-mail to read and answer and then maybe get to sleep early tonight, as the circles under my eyes just don’t seem to want to go way.

AZG Armenian Daily #015 - 31/01/2004

Psychoanalysis

PEOPLE'S LAMENTABLE CONDITION SUITS AUTHORITIES?

Armenian people are tired of politics and political stresses, ethnic psychiatrist Karine Nalchadjian said January 30 answering daily Azg's question.

In Ms. Nalchadjian's words, psychiatric crisis is typical to people during transition periods, during which the people discard certain high or traditional values. Self-protection instincts are gaining larger importance among people at such periods, and moral disappointments prevent people from sympathizing a person and seeing a leader in him. Right now this is what's happening in Armenia, and only improved social conditions can waken enthusiasm and certain cherished values among the nation.

The fact of the current authorities being the only party that can improve people's well being, it turns out that the ruling elite on purpose keeps the social conditions of people on a level which enables them to only survive. For when people's condition reaches certain stable situation, in words of Ms. Nalchadjian, they start noticing other things than what's necessary for survival, and have more demands, express thoughts or revolt. This is what's done in Armenia, and no opposition powers can now do anything. This is of course, unless someone who really cares about people will emerge, and is able to win their sympathy.

The only thing that, according to Nalchadjian, can awaken the Armenians, among the current problems, is the Karabakh problem. In the psychiatrist's opinion, as far as the idea of homeland and patriotism sits very deep in the soul of Armenians, in the case the Karabakh's fate is endangered, i.e. an option that goes counter to the Armenian interests is adopted officially, then inner fluctuations and mass disorders reaching to a revolt are possible.

I’m in Yerevan. I got here 2 days ago, but have not had access to internet.

The weather is okay, but today it was a bit cold.

Why am I here? Well you all know what stuff I’ve been dealing with and this visit is no exception.

The ride in was smooth and fast, as the roads were ideal. The weather the day I came was so clear that at Saravan (about 150 kilometers from Yerevan), you could see Ararat and Masis (this does not happen that often).

Anyway this trip is going to be a little on the long side and I have many people to meet with and don’t plan on returning until I meet with every one of them.