On May 11, 2004 as a result of the discussion of the annual report of the Control Chamber of the National Assembly, according to the requirements of the Article 7 of RA law “On the Control Chamber of the National Assembly of the Republic of Armenia,” the report was sent to the Chief Prosecutor’s Office on 27.05.2004 by the Speaker of the National Assembly. I’ll remind that the report included 19 reports of the oversight made in the credit programs, exploitation of the bowels, science, tax and customs, self local-government, privatization of the state property and other spheres, in connection with all of them preventive punishments of the prosecutor’s office were made, about which is mentioned in the RA Chief Prosecutor’s corresponding document.

In particular, based on the annual report of RA NA Control Chamber 63 officials were warned, 35 applications were presented, 7 persons were brought to administrative liability, 3 criminal cases were charged, about 79,559.5 thousand drams were restored and entered into RA state budget.

In connection with the reports of RA NA Control Chamber 63 officials were warned on the impermissibility of the violation of the law by RA Prosecutor’s bodies, including:

3 officials - in RA Ministry of Transport and Communication,

13 officials - in RA Ministry of Environmental Protection,

4 officials - in the Water Economy State Committee adjunct to RA Government,

3 officials – in the State Fund of RA Social Security,

40 heads of communities.

35 applications were presented by the Prosecutor’s bodies of the Republic of Armenia in order to eliminate the conditions causing the reasons giving rise to the violations according to the results of the study and their implementation, including:

5 ministers (on coordinating the activity of RA Territorial Administration and Production Substructures, Transport and Communication, Education and Science, Environmental Protection and Energy),

Chairman of Water Economy State Committee adjunct to RA Government, Head of the State Tax Service, Chairman of the State Customs Committee, Head the State Property Management Department and Chairman of RA Social Security State Fund,

22 community heads,

President of RA National Academy of Sciences and Director of “Nor Akunk” LTD.

In connection with Control Chamber report the Prosecutor’s office bodies sued 7 administrative procedures, including:

Procedures on the administrative offences to “Tuff Yeryak,” “Salakhor,” “Harichadzor” and “Ashtarak Karhank” were charged for operating mines without appropriate documents (treaties on the use of bowels, act on allocation of land of the mining site), and the latter were subjected to administrative fine for 150,000 drams.

A procedure on administrative offence was charged towards the directors of “Martuni” OJC and “Shinanyut” (Construction Materials) LTD, and they were sent to the environmental territorial division in order to bring to administrative liability the directors,

The commercial director was brought to administrative liability for submitting not right information to the Territorial Tax Inspection by “Nor Akunk” CJSC.

3 criminal cases were held by the Prosecutor’s bodies.

So:

A criminal case was sued towards the Executive Director of “Agrinex” CJSC by the 1^st part of the Article 179 and the 1^st provision of the 3^rd part of RA Criminal Code (“Misappropriation or peculation especially in big amounts”), a detention was chosen a preventive measure, and the criminal case with the indictment was sent to the court of the first instance of Centre and Nork-Marash communities.

A criminal case was sued by the 1^st part of the Article 188 of RA Criminal Code (“Illegal Enterpreneurship”) against the director of “Ayrumi Lernagorts” OJSC, which was sent with indictment to the court, an accusatory verdict was made.

A criminal case was sued towards the director of “Anest” LTD by the features of the item 1 of the 3^rd part of Article 178 of RA Criminal Code (“Fraud, which was done with especially big amounts”).

As a result of the applied prosecutor’s acts, the material damage caused to the state was restored by the out of court order. In particular, 79,559 thousand drams was paid to RA state budget, at the same time for providing the fulfillment of the obligations towards the state by the proposal of prosecuting motions were submitted to the state liable bodies.

The results of the implemented control during 2004 by RA NA Control Chamber were summed up in the 2004 annual report of the Control Chamber, which was submitted to the National Assembly and will be discussed at the upcoming sitting of RA National Assembly. I consider necessary to note that by control were included in such structures, as RA Constitutional Court, RA Chief Prosecutor’s Office, National Security adjunct to RA Government, the Police adjunct to RA Government.

Despite the undertaken arrangements by RA Chief Prosecutor’s Office, about which I mentioned, during 2004 violations and drawbacks were also registered. I would like to present some of them.

From the control made in the system of the Water Economy State Committee adjunct to RA Government:

- Violating of the sub clause “b” of the Article 24 of and the requirements of the 3^rd clause of the Article 23 of RA law “On Purchases” avoiding from the procedure for purchasing additional works and services, the amount of the treaties concluded in the form of purchasing from one source before has artificially increased and it’s 24,700.000 drams.

- During the dissolution of the state institution “Implementation of the Programs of the Water Supply and Water Wasting Systems” under the subordination of Water Economy State Committee the calculated debts are free and based on the presented proposals of RA Government the 52,508.000 drams received from the reserved fund was spent without any basic documents.

- 128,0m drams allocated for the purchase of liquid chlorine to the Water Economy State Committee from the reserved fund of RA Government was used not for any purposes and not effective, as a result, liquid chlorine was not received. The money was not subject to restoration and payment to the state budget.

From the control on the implementation process of the credit program “Agricultural Reforms Support:”

Within the frameworks of programme about 7,5m USD was allocated to the banks with “Credit” component in order to allocate agricultural credits in RA marzes, but the crediting, according to marzes, was not implemented equally. So, if 35.6% of the credits was allocated to Armavir marz, then 0.4% - to Vayots marz, 1,8% - to Shirak marz, 2.3% - to Tavush marz.

Within the framework 5 banks from 8 are in the process of non-payment and dissolution.

As a result of implementing the credit programmes with deviations of envisaged schedules, in 2004 RA Government paid debts to creditors – 646.500 USD, including, 524.100 USD – to the World Bank, 122.400 USD – to the German Development Credit Bank.

About the use of the means allocated by health state purposeful programmes on the tuberculosis medical aid by RA 2003 state budget:

It was clarified that during the last 10 years, according to statistical data, the number of the patients registered with active tuberculosis diagnosed in tuberculosis institutions first time in Armenia 2.5 times.

The expenditure of the treatment of one day of one patient within the framework state order, according to the explanatory of 2003 state budget draft law, includes:

“salary and additions to the salary, other economic costs – 52.0%,

“laboratory-instrumental diagnosed costs, costs for medicine and medical belongings – 48%.

Studies were done by alternative way in five medical institutions. It’s clear from the comparison of the above-mentioned expenditure articles of the indicated and factual proportions that the medical institutions implementing state order didn’t provide the full execution of the intended expenditures by the state. 73.9% of the received financial means was used for the payment of the job and caring for the economic costs, which exceeds the indicated index by 21.9%. Instead, the medicine, medical belongings, laboratory-instrumental diagnosed costs were implemented less by 22.0% from the indicated index (Slide 6). The mentioned testify that the part of the allocated means was used in non-expedient way from the state budget.

During the 2003 the number of the patients received resort treatment by tuberculosis was 226 people, including the children up to 14 years, was 216. With this kind of medical service two institutions were involved before: Dilijan children’s resort and Dilijan Gyanjetsian anti-tuberculosis resort. The latter by RA Government # 693-N decision of 15.05.2003 was alienated, doesn’t function and is destroyed, which has its negative influence in the full, effective treatment of the patients with tuberculosis.

By the mentioned decision a privatization of the state property not included in the privatization programme was done by alienation, which contradicts the requirement of the third clause of the “Strategical Concept of the Privatization of Health Institutions in RA,” according to which, the health institutions, in particular, are not subject to privatization, the activities of which is of all-state importance.

We’ll remind that 400 cases of resort treatment of the patients with tuberculosis was envisaged by 2003 state budget, in fact for 226 (56.5%).

After the news conference RA Speaker answered the journalists’ questions:

Diana Markosyan – “Ayb Fe”

How do you explain the circumstance that in the judicial-legal sphere offences were discovered but the prosecutor’s office hasn’t undertaken any steps in that direction?

What will you say about the sphere of defence, have there been offences, and if yes, to what extent?

- It’s not compulsory that in connection with 19 directions, criminal cases will be brought before the court. There were drawbacks, and those drawbacks are indicated in the answers, which we received. You know, the Control Chamber had check-ups in RA Prosecutor’s Office, in the bodies of National Security, in the Police. In the future, studies will also be made in defined way in the Ministry of Defence because the budget means are subject to control in all state structures.

Margarit Yesayan – “Aravot” daily

- You mentioned the spheres, the responsible persons of which are the representatives of political coalition - even the heads of the department are elected by the principle of party affiliation. Have you discussed these revelations in the coalition council, are you going to discuss that issue with your political partners?

- First of all, I don’t share the viewpoint that the heads of the department are appointed by the principle of party affiliation. The heads of the department are civil servants and work by contest. The ministers, yes, are appointed by the principle of coalition, and in more 30 countries that principle works. The political forces participate in the elections, shape Government and bear political and legal responsibility for the activity of the government. The mentioned drawbacks also refer to the parties, which also formed coalition government, and I repeat again, we don’t live during Brezhnev times, if there are drawbacks, then one shall say about those drawbacks, so they will be eliminated. And if there are guilty persons, then they’ll be made responsible for that. Part of the sent answers of the Prosecutor’s office refers to 2003, another part - to 2004. All the drawbacks, that are presented, naturally, will become or have become a matter of thorough discussion in the mentioned ministeries. I don’t see necessity of politicizing the matter out of place because by law, the body stipulated by Constitution, in this case, the Control Chamber made studies, check-up, I, as a Speaker of the National Assembly, making use of my right, I’ve sent the materials connected with those drawbacks to the Prosecutor’s Office, I’ve received an answer and I’m publishing it. I also understand that not everyone will understand those publications, political estimations and estimations of any nature will sound but I’ve stated once that I’ve obtained immunity. Let whoever says whatever - the thing is about the fact, it doesn’t matter, who is from what party. If one from Orinats Yerkir (Rule of Law) had abuse of power or negligence of his/her duty, so let him/her give an answer. It seems to me that all the parties shall approach with understanding. If there is blunder, or guilty, so we’ll have to correct the mistake, the guilty shall be responsible for what they’ve done, in order to limit the power with right, but not limit the human rights with power in Armenia.

Marieta Makaryan: “Azg” daily

- Studies are made in the City Council, when they will be finished and are there high-profile revelations?

- The check-ups in the City Council will be finished in the nearest future and will be included in the report of the Control Chamber in defined way. I can speak about very extraordinary and very concerning fact for me, violating RA laws; they’ve alienated the building, a plot of 3000 square metres from the Institute of Inorganic Chemistry to an entity being in privileged status, which obtaining everything with lowest price, only in two months re-sold it to another organization. When I met with the scientists, they raised that question. I officially applied to the Mayor and other liable bodies to solve this problem. It’s especially impermissible to alienate the plots being in good parts of the city. I’ll give an example. In the city of Yerevan during the last 10 years 57 kindergarten buildings were alienated. When I met with the directors of pre-school institutions these days, the head of the educational department of the Arabkir quarter said that buildings are necessary in Arabkir for opening kindergartens. During 10 years only 11 buildings were alienated in Arabkir. But today, the head of the same community or the quarter are concerned in getting a building. That’s why we’ll have to alarm in time, sound our concern, so tomorrow we won’t stand before broken tub.

Karine Danielyan: “Azg” daily

- It was published that 18 credit programs from 24 worked ineffectively. You mentioned about one-two, how should the issue of the others be solved? What will you say about the omissions of the health care? Are there institutions, whose heads have been responsible for?

I’ve sent the results of the studies of 19 credit programs to RA Prosecutor’s Office. The results of those 19 check-ups have been summed up in the annual report of the Control Chamber. Judicial confrontation means have been applied by the results of 19 studies, beginning from criminal cases up to the submission of motions. I was not claiming today to present the whole material because it would take hours. In the system of health in connection with the state order the check-ups of the Control Chamber show that there are numerous drawbacks, and there are appropriate records about that. Regarding the more thorough information, I suggest getting that from Gagik Voskanyan, Chairman of Control Chamber because today I didn’t set a task to publish all the details, but present the main directions. A motion of 40 heads and 5 ministers has been presented but I didn’t detailed what was presented to which for.

Armen Zakaryan: “Liberty” Radio Station

- Are you pleased with the work of the Chief Prosecutor’s Office? And the second, last year during this period a row was raised around the breaches during the repairing of the buildings of the courts. Are you aware of the end of it?

- One of those 19 programs refers to the judicial system. In connection with all materials we’ve received concrete answers. What refers to the fact, if I’m pleased with the answers or not, then I consider that together with we’re making a very important step. I’m an MP for 12 years, but it’s the first time that the materials of the Control Chamber have been sent to the Prosecutor’s Office, an answer was received, that answer is published, and we see that legal influencing means have been applied. Perhaps, we’d like to hear tough estimations but I think that the first very important step is made, and due to further consistency, I’m sure that big results will be. They’ll have to answer where they’ve taken the 128m drams and haven’t bought the chlorine, what have they done with that money? Where is the 205m drams or about 450.000USD in the water system or the ineffective cost of 250m dollars, which is equal to 130.000USD? All this is recorded, and within the frameworks of our powers we’ll be consistent till the end, so to have the guilty responsible by law. It’s not possible to fight the corruption by word - one should make practical steps, and the parliament has one instrument, the Control Chamber, and the latter has made these studies, and we put it in the process by defined order.

- Naira Zohrabyan: “Haykakan Zhamanak” (New Time) daily

- Yesterday the president elaborated on the joint statement of 34 parties and said that the parties, which signed and put themselves in not convenient situation. Signing under the statement of Nor Zhamanakner (New Times) party, does Orinats Yerkir (Rule of Law) consider that it appeared in an uneasy situation?

- First, one shall read the part of the President’s statement, where it says that the influence of the criminal elements on the political processes is impermissible. We shall wait till the end of the examination. The Rule of Law signed under that statement and considers that signed it correctly, and we’re going to condemn from now on any attempt of criminal element on political processes irrespective of the fact who did it. We’ll see what estimation will give the examination.

Diana Markosyan: “Ayb Fe”

- Why wasn’t made such statement after stabbing by knife Hayk Babukhanyan and in connection with the events of April 12-13?

- I condemned myself what happened with Hayk Babukhanyan, and the Rule of Law too. In connection with April 12-13 every political force or figure based on his convictions gave its precise estimation. The political field of Armenia is divided, and everyone can have his conviction.

Artak Barseghyan: “Mediamax”

- How do you evaluate the results of your official visit to Georgia? And did you discuss the issue of the Armenian churches being in the area of Georgia with Patriarch Ilya II?

- In connection with the visit I’d like to distinguish 4 important clauses: the problems concerning the Armenians of Javakhk were rather seriously raised and sufficient assurances were received to make concrete and practical steps, the problem of re-operation of Abkhaz railway was discussed at political level, the issue of our churches and lands belonging to the church. On May 15 Sergo Yeritzyan, Minister of Education and Science will leave for Georgia, and by the end of May directors of 30 schools of Javakhk and other places full of Armenians will visit Armenia to discuss the problems in place and find solutions.

Rita Karapetyan: “Noyan Tapan” (Noah’s Ark) press agency

- An opinion sounded that the coalition wants to keep the governing of the Government from criminal elements, but they aren’t able to do it. Do you agree with that?

- I think all of them, not only political forces are interested in not having the criminal elements penetrated into political field. I think this is everybody’s political viewpoint. What refers to being incapable, the political forces have their rights and responsibility.

Ofelia Kocharyan: “Ambion” (Tribune)

- There are talks circulating that for appointing director of a school or especially for working in NA make the people to become a member of Rule of Law. Can you say, how many from NA employees are member of Rule of Law?

Long ago passed the times, when a person was obliged to become member of any party. If whatever is done by force, there can’t be anything good from it. What refers to NA, I haven’t released anyone in NA to accede another one instead. There were vacancies, contests were announced and people by defined order took part and were taken to employment. The National Assembly is multiparty body, including also NA staff. There is a person working here from ANM times and today is still a sworn ANM. What happened? We’ll have to respect the people’s political conviction.