Last year, the Government allocated 755 million AMD for the improvement of the housing conditions of the employees of 6 state institutions. In our previous publication Iravaban.net had referred to the issue that all institutions except the police had provided the flats to their employees on the property right and almost without preconditions.
In these housing purchase transactions the following fact is really interesting. 16 flats of the overall 28 purchased are located in Yerevan, in the same district and were purchased by “Mikshin” and “Mikmetal” companies. The Prosecutor’s Office had bought from “Mikmetal” company 2 flats in the address 8 Adonts street, three flats were bought by the Finance Ministry, and 1 flat was bought by the Special Investigation service. 6 flats in 8/2 Adonts Street were bought by the National Security Service and 1 flat by the police from “Mikshin” company.
Addresses 8 Adonts street and 8/2 Adonts street are located in “Year” District. According to the website of the district “Yeraz” residential district was founded by “Mikmetal” CJSC, which operates in the RA since 2003 and is a company selling bars and wires. The construction of the district is carried out by “Mikshin” company which operates since 2007.
“Mikmetal” controlling shareholder is a company registered in an offshore zone
The owner of by “Mikmetal” company that sells bars and wires is Mikhail Harutyunyan, who is well known in Armenia. But the State Register of Legal Entities of the Ministry of Justice reports that he is only 25 per cent shareholder in the company.
And 75 percent of shares belong to offshore “Morako Holdings” Ltd., with legal address in Limassol, Cyprus Makariusi 3-284. According to the official register of the Cyprus Company registration website one of the directors of the company is certain Karine Hayrapetyan.
“Mikmetal” company’s share capital amounts to 715 million 740 thousand drams.
“Mikshin” company is 100% owned by Tigran Harutyunyan, who is Mikhail Harutyuunyan’s son. According to the information of the State Register of Legal Entities of Justice Ministry, the company’s share capital at the time of the creation was 100 thousand AMD, while the latest data, as of 1 August 2013 it was 50 thousand AMD.
Actors are the same
In the sale and purchase contracts of these all 16 apartments the authorized person of the seller is Karen Gagik Ghazaryan. In other words, he is an authorized vendor and from “Mikmetal” company (Director Vahan Harutyunyan), and from “Mikshin” Company (director Stepan Khachaturyan).
It is interesting that all trading transactions were authenticated by a notary of Kentron district Haykuhi Harutyunyan.
In fact, the government on state expenses is populating a district which is being built by private companies. Of course, honestly it should be noted that in this case the prices were not higher than the market price of apartments (If we compare the price and the total area of newly built apartments), but it is not justified why all the apartments were bought from these companies without announced the procurement tender.
Notably before adopting of the Government decision 1055-N (within which framework about 755 million drams were allocated for the purchase of apartments), the government presented the summary of the recommendations made by the concerned authorities. Here among other suggestions there was an offer to realize the purchase on competitive procurement procedure, according to Article 20 Part 3 of the RA law on Procurements.
But the proposal was rejected for the following reasoning, “Is not accepted because of the government’s aims to improve the housing conditions of the employees of National security Service, TH e RA Police, the RA Prosecutors’ Office, the RA National Protection Service, the RA Special Investigation service and the RA Ministry of Finance, which is a an urgency issue according to Article 5 Part 5 (2) of the RA law on procurements.” But there is no explanation with regard of the urgency of purchase.