Tuesday, 22 October

Yerevan Municipality Signs AMD 8.5 Million Contract with a Temporarily Suspended Company

Armenia’s state bodies continue to award contracts to companies owned by family members or affiliated companies of top officials.

On March 14, the Yerevan Municipality signed a contract with Akada Print LLC, a company owned by Alita Adamyan, the daughter of Kamo Adamyan, Deputy Chief of Staff of the Ministry of Justice.

In the past, Kamo Adamyan served as Head of the Economic Department of Armenia’s National Statistical Service and Ministry of Energy, Chief Auditor of the same ministry, Head of Internal Audit Department and Chief of Staff at the Ministry of Justice, and Head of State Register Agency of Legal Entities.

According to the contract, Akada Print will print receipts for garbage collection payments for the municipality. The AMD 8.5 million (US$17,680) contract covers the printing of 945,000 receipts; 9 drams apiece.

However, according to the Tax Service’s official website, this company’s operations “have been temporarily suspended”. So how did it win a municipal tender?

According to the State Register of Legal Entities, Akada Print was established in June 2004, owned at that time by Kamo Adamyan's wife, Alina Danielyan, and Lilit Grigoryan. 100% of shares were passed to Kamo Adamyan's 20-year-old daughter Alita in 2012. Since June 2017, the other daughter, Diana Adamyan, is the company director.

By the way, it's not the first case that government agencies have sign contracts with this company.

The Control Chamber’s report in 2013 mentioned a contract signed between the Social Security Service and Akada Print in 2012 for printing 150,000 incapacity to work forms, paying 137 drams per sheet, while the service paid 64.8 drams per each when signing a contract for 170,000 forms of the same sample in July 2013 with Nork Center.

The Control Chamber concluded that more than ten million drams would have been saved if the Social Security Service had signed another contract with Nork Center instead.

Top photo: Yerevan Municipality's Facebook page.

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