Armenia’s Police Department Signs AMD 1.590 Billion in Contracts with Company Showing Only One Employee

01:00, 22 July, 2018

In May and June of this year, Armenia’s Police Department signed three contracts totaling AMD 1.590 billion ($3.3 million) with a company to install street signs and maintain traffic lights in Yerevan and elsewhere in the country.

The company in question, Ukrinvest LLC, only shows one employee on the books according to information appearing on the Soldiers' Insurance Foundation website. Ukrinvest was founded in February 2017 and its wholly owned by Andranik Tatikyan, a citizen of Ukraine.

For the moment, the Police can only pay 786.256 million drams for the above services. The remainder will be paid to the company when funds are available.

The contract to install road signs in Yerevan amounts to 99.874 million drams, of which 38.541drams is ready to be paid.  

The contract does not specify how many of each type of road sign should be placed in Yerevan, leaving this to the discretion of the police. For example, the contract merely states  that a total of 1,200 road sign support frames should be prepared and installed. The cost of each is 13,500 drams.

10.800 million drams have been allocated for the preparation and installation of 600 triangle road markings. The cost of each unit is 18 000 drams.  80 transportation station signs will be prepared and installed at 90,000 drams apiece. The sign will be made of zinc-coated tin with a high light intensity luminous gloss.

The Police have also ordered 60 Taxi Stand signs at a unit cost of 20,000 drams.

According to the information published in the centralized public procurement system, except for the police, no government agency has signed contracts with Ukrinvest. The impression is that the company is created only for providing police services. We did not find similar service contracts in the procurement system.

As for street marking services in Yerevan, the police signed an AMD 1.45 billion contract with Ukrinvest Ltd. on May 31.

The next contract, 445 million drams, with the company was signed by the police on May 31, for maintenance of Yerevan’s traffic lights.

The only information I could find on the internet about Ukrinvest is that it and Mikmetal CJSC have set up a consortium and have participated in the Lifeline Road Improvement Credit Program announced by the Transport Program Organization SNCO for the implementation of Road Signposting and Installation, but the application was rejected due to a failure to comply with the evaluation and qualification criteria.

75% of Mikmetal CJSC shares are owned by Vahan Harutyunyan, a member of the National Assembly. The remainder are owned by his father Mikhail Harutyunyan.

Mikhail Harutyunyan is the uncle of Mihran Poghosyan, who headed Armenia’s Compulsory Enforcement Service until he resigned in 2016 after his murky offshore dealings appeared in the Panama Papers and extensively covered by Hetq. Poghosyan now sits in the Armenian National Assembly.