Re: Armenia's Economic Pulse
WAVE OF CORRUPTION INVESTIGATIONS TARGETS ARMENIAN STATE AGENCIES
by: Lilit Gevorgyan
Global Insight
October 11, 2012
A series of corruption probes into the health, construction and social
security ministries and state agencies have been carried out in recent
weeks in Armenia. The findings prompted Prime Minister Tigran Sarkisian
to express his concerns at a cabinet meeting on 10 October.
Sargsyan said that a number of high-ranking officials have been
fired as a result of the findings, and added that from now on, the
heads of failing agencies will be held personally responsible for
proven incidents of corruption and bribe taking. The move follows the
high-profile arrest in September of Vazgen Khachikyan, who managed the
State Social Security Service (SSSS) until December 2010. The State
Prosecutor's Office has found the allegations of large-scale abuse of
the social benefit payments strong enough to launch an investigation.
As a result, 29 people have been arrested and 12 of them have received
prison sentences.
Significance:Corruption remains a serious operational issue when it
comes to doing business in Armenia, with a strong negative impact on
the South Caucasian republic's sparse state resources. Successive
governments have pledged to root the problem out but thus far have
failed. The recent surge in efforts to confront the problem comes
against the backdrop of a growing social discontent ahead of the
crucial presidential elections. Although small, Armenian opposition
parties are also vocal in the parliament, elected in May 2012. While
Sarkisian's efforts are positive, he still needs to convince voters
that this surge in anti-corruption activities is not linked to the
upcoming election and that momentum will be maintained after the vote
if the current government stays in power.
WAVE OF CORRUPTION INVESTIGATIONS TARGETS ARMENIAN STATE AGENCIES
by: Lilit Gevorgyan
Global Insight
October 11, 2012
A series of corruption probes into the health, construction and social
security ministries and state agencies have been carried out in recent
weeks in Armenia. The findings prompted Prime Minister Tigran Sarkisian
to express his concerns at a cabinet meeting on 10 October.
Sargsyan said that a number of high-ranking officials have been
fired as a result of the findings, and added that from now on, the
heads of failing agencies will be held personally responsible for
proven incidents of corruption and bribe taking. The move follows the
high-profile arrest in September of Vazgen Khachikyan, who managed the
State Social Security Service (SSSS) until December 2010. The State
Prosecutor's Office has found the allegations of large-scale abuse of
the social benefit payments strong enough to launch an investigation.
As a result, 29 people have been arrested and 12 of them have received
prison sentences.
Significance:Corruption remains a serious operational issue when it
comes to doing business in Armenia, with a strong negative impact on
the South Caucasian republic's sparse state resources. Successive
governments have pledged to root the problem out but thus far have
failed. The recent surge in efforts to confront the problem comes
against the backdrop of a growing social discontent ahead of the
crucial presidential elections. Although small, Armenian opposition
parties are also vocal in the parliament, elected in May 2012. While
Sarkisian's efforts are positive, he still needs to convince voters
that this surge in anti-corruption activities is not linked to the
upcoming election and that momentum will be maintained after the vote
if the current government stays in power.
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