Vedi Mayor Signs Contracts Totalling $1.3 Million with Company Owned by His Uncle
On August 30, 2023, the Vedi Municipality signed an AMD 80 million (US$ 207,000) contract with Noyavan LLC to build potable water supply lines in certain neighborhoods of the town thirty-five miles south of Yerevan.
Noyavan is fully owned by Grigor Manukyan, uncle of Vedi Mayor Garik Sargsyan, a member of Armenia’s ruling Civil Contract party.
The company, between 2018 and 2024, signed fifteen contracts totaling 506.1 million drams ($1.3 m) with the Vedi Municipality.
It’s also supplied construction materials, furniture, centralized heating systems to the Yerevan Municipality, the National Agrarian University of Armenia Foundation, Armenia Television and Radio Broadcasting Network, the Ministry of Defense, the State Revenue Committee (SRC), the State Security Service and the Civil Aviation Committee.
Noyavan LLC was founded in 1994 and, according to the data available on the website of the SRC, is engaged in the wholesale trade of building materials.
In addition to Noyavan LLC, Garik Sargsyan's uncle has shares in three other companies - 41% share in Ashmangrig LLC, 33% in Regnum LLC, and 25% in Noy Energy LLC.
In 2022, Noyavan LLC signed another contract with the Vedi Municipality. The company had to install gas pipelines in the town at a cost of AMD 109 million ($281,391). The work was carried out within the framework of the government's subsidy program. For the implementation of the project, AMD 49 million was allocated from the state budget and some 60 million drams from the community budget.
When Hetq asked Vedi officials how a company with no experience in gasification won the contract, the municipality replied that the purchase was carried out in accordance with Armenia’s “Law on Purchases" and the corresponding decision of the Government.
"In this case, the work was carried out jointly with Tiamat LLC, which has the appropriate license in the given field, based on the joint activity agreement," the municipality responded
Hetq asked Noyavan owner Grigor Manukyan to clarify how his company, which is engaged in the wholesale trade of building materials, won the gasification and water line construction tenders.
Manukyan replied that the company has carried out such work in the past.
Grigor Manukyan scoffed at the notion that his uncle had anything to do with the company winning these contracts.
"If that circumstance had an impact, we would have won other competitions in which we participate."
Top photo (from left): Garik Sargsyan, Grigor Manukyan
Photo credit: Nare Petrosyan
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