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RA Control Service Reveals Violations In Mining Industry

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  • RA Control Service Reveals Violations In Mining Industry

    RA CONTROL SERVICE REVEALS VIOLATIONS IN MINING INDUSTRY

    /PanARMENIAN.Net/
    21.12.2009 15:16 GMT+04:00

    /PanARMENIAN.Net/ Control Service at RA President's administration
    revealed a number of violations in activities of environment, energy
    and natural resources ministries of Armenia, Hovhannes Hovsepyan,
    head of Control Service told a press conference in Yerevan on Monday.

    According to him, there has been a discrepancy in reported amounts
    of royalties, submitted by business entities to two different state
    agencies. "And even despite this inconsistency of reports, these
    business entities are state debtors," he said.

    The Control Service has also identified violations in granting
    the right for mine exploration. In particular, the right to explore
    mines was granted to business entities, which had not fulfilled their
    contractual obligations.

    "Inspections in 10 mines have shown that business entities acquired
    additional land lots, not through auction, as the law required,
    but exercising their right to expand, thus causing AMD 515 million
    damage to the state. Relevant legislative amendments have already
    been initiated," Hovsepyan said.

    Contractual obligations to make investments have not been fully
    fulfilled by several business entities. "Most of these businesses have
    not invested the promised amount, causing over AMD 2 billion harm to
    the state. According to the law on concessions, the property of debtors
    can beconfiscated to repay these amounts, registered as public debts.

    187 businesses did not pay AMD 600 million state duties for licenses.

    This sum will be repaid through confiscation of the property.

    Otherwise, the licensing right of these businesses will be suspended,"
    he concluded.
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