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AUTHORITIES WIDEN CRACKDOWN ON PRO-OPPOSITION TYCOON
By Hovannes Shoghikian
Radio Liberty, Czech Rep.
Nov 13 2007
The Armenian authorities appeared to have stepped up on Tuesday
their controversial crackdown on companies owned by a millionaire
businessman close to former President Levon Ter-Petrosian.
Tax inspectors and police officers reportedly raided the offices of
yet another company belonging to Khachatur Sukiasian and his extended
family. According to Ara Zohrabian, a lawyer representing Sukiasian's
SIL Group holding, they not only inspected the Norshin construction
firm's books but took its chief accountant to the headquarters
of a feared police unit tasked with combating organized crime for
questioning.
"The accountant was detained without any legal grounds or
justifications," Zohrabian told RFE/RL, adding that he was released
several hours later.
The reported raid is apparently part of an ongoing financial inspection
of SIL Group's activities launched by the State Tax Service (STS) last
month following Sukiasian's public endorsement of Ter-Petrosian's bid
to unseat the current Armenian leadership and return to power. The
STS has already accused a Sukiasian-owned pizza restaurant chain
and printing house of evading a combined 1.36 billion drams ($4.25
million) in taxes. One of their chief executives is currently under
arrest pending investigation.
The government also began inspecting earlier this month the operations
of two other companies controlled by SIL Group. Although no formal
fraud accusations have been leveled against them so far, Zohrabian
claimed that their senior executives were likewise forcibly taken
away and interrogated by the special police last week. "Workers of
these companies are really terrified now," he said.
In an interview with RFE/RL last week, Sukiasian rejected the tax
evasion charges and linked them with his unwavering support for
Ter-Petrosian. The tycoon, better known to Armenians with his Grzo
nickname, made a fortune in the 1990s by capitalizing on his close
ties with members of the Ter-Petrosian administration. Sukiasian never
made secret of his enduring admiration for Ter-Petrosian but avoided
publicly challenging the current authorities until the ex-president
ended his nearly decade-long political retirement in September.
Also alleging government retribution is a television station in
Armenia's second largest city of Gyumri that broadcast a September 21
speech in which Ter-Petrosian harshly criticized the administration
of President Robert Kocharian. The STS accused the GALA TV on Monday
of evading 26 million drams ($80,000) in taxes over the past two years.
Ter-Petrosian and his allies say the crackdowns on SIL Group and
GALA are politically motivated and aimed at stifling dissent ahead of
next February's presidential elections, a view shared by other major
opposition parties. Armen Martirosian, a parliament deputy from the
opposition Zharangutyun party, urged the authorities on Tuesday to
stop the "tax persecution" of defiant businessmen.
"It is inadmissible to place restrictions on free media, citizens and
economic entities in the run-up to a fateful event like presidential
elections," Martirosian said in a speech at the National Assembly.
The STS on Tuesday again declined to comment on such claims and its
actions against SIL Group.
By Hovannes Shoghikian
Radio Liberty, Czech Rep.
Nov 13 2007
The Armenian authorities appeared to have stepped up on Tuesday
their controversial crackdown on companies owned by a millionaire
businessman close to former President Levon Ter-Petrosian.
Tax inspectors and police officers reportedly raided the offices of
yet another company belonging to Khachatur Sukiasian and his extended
family. According to Ara Zohrabian, a lawyer representing Sukiasian's
SIL Group holding, they not only inspected the Norshin construction
firm's books but took its chief accountant to the headquarters
of a feared police unit tasked with combating organized crime for
questioning.
"The accountant was detained without any legal grounds or
justifications," Zohrabian told RFE/RL, adding that he was released
several hours later.
The reported raid is apparently part of an ongoing financial inspection
of SIL Group's activities launched by the State Tax Service (STS) last
month following Sukiasian's public endorsement of Ter-Petrosian's bid
to unseat the current Armenian leadership and return to power. The
STS has already accused a Sukiasian-owned pizza restaurant chain
and printing house of evading a combined 1.36 billion drams ($4.25
million) in taxes. One of their chief executives is currently under
arrest pending investigation.
The government also began inspecting earlier this month the operations
of two other companies controlled by SIL Group. Although no formal
fraud accusations have been leveled against them so far, Zohrabian
claimed that their senior executives were likewise forcibly taken
away and interrogated by the special police last week. "Workers of
these companies are really terrified now," he said.
In an interview with RFE/RL last week, Sukiasian rejected the tax
evasion charges and linked them with his unwavering support for
Ter-Petrosian. The tycoon, better known to Armenians with his Grzo
nickname, made a fortune in the 1990s by capitalizing on his close
ties with members of the Ter-Petrosian administration. Sukiasian never
made secret of his enduring admiration for Ter-Petrosian but avoided
publicly challenging the current authorities until the ex-president
ended his nearly decade-long political retirement in September.
Also alleging government retribution is a television station in
Armenia's second largest city of Gyumri that broadcast a September 21
speech in which Ter-Petrosian harshly criticized the administration
of President Robert Kocharian. The STS accused the GALA TV on Monday
of evading 26 million drams ($80,000) in taxes over the past two years.
Ter-Petrosian and his allies say the crackdowns on SIL Group and
GALA are politically motivated and aimed at stifling dissent ahead of
next February's presidential elections, a view shared by other major
opposition parties. Armen Martirosian, a parliament deputy from the
opposition Zharangutyun party, urged the authorities on Tuesday to
stop the "tax persecution" of defiant businessmen.
"It is inadmissible to place restrictions on free media, citizens and
economic entities in the run-up to a fateful event like presidential
elections," Martirosian said in a speech at the National Assembly.
The STS on Tuesday again declined to comment on such claims and its
actions against SIL Group.