Reviewing the financial disclosure statements of Armenia’s marzpets (provincial governor) one gets the impression that they all live solely on their government salaries. But all of them drive fancy cars, own lots of property, and have their hands in a various businesses.
All of the 660 million AMD (US$1.4 million) the Armenian government earmarked to solve the most pressing problems in the province of Shirak went to contractors on a negotiated basis; that’s to say, without any tender bids.
In 2014, a 32.2 million AMD (US$62,000) contract to pave a road in the Gegharkounik community of Yeranos went to a company 95% owned by the brother Artoush Ghukasyan, a well connected member of the ruling Republican Party with long years of service in the Gegharkounik Provincial Government.
Saghatelyan Brothers, a company fully owned by Aragatz Saghatelyan (the mayor of Vayk) received a 28 million contract to install an irrigation water pipeline in the village of Khntzorout.
Half of the money, 150 million AMD, wound up be funneled to company owned by the brother of Provincial Governor Sargis Sahakyan.
When Aram Harutyunyan was the Kotayk Provincial Governor (currently Chairman of Armenia’s State Committee of Water Economy), he funneled millions of AMD in state aid to companies he owned.