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PROBE REVEALS ABUSE OF FUNDS AT LABOR AND SOCIAL AFFAIRS MINISTRY
Tert.am
02.06.11
Speaking at today's cabinet meeting, Armenian minister of labor and
social affairs said an internal investigation has revealed large-scale
abuse of funds in projects funded from World Bank loans.
Minister Artur Grigoryan said that in 2006-07, the ministry
utilized big amounts on consulting and law-drafting works that
were unnecessary. Besides, the minister pointed to the significant
differences in the fees paid for similar consulting services.
For example, the ministry had paid $28,000 for the consulting services
to draft three laws aimed at improving the mandatory social security
system, while it had cost the government $45,000 to solicit consulting
services over the system's funding mechanisms.
Those projects - implemented in 2005-07 - were approved by the
cabinet of ministers, the minister said, but shunned a direct answer
when asked by journalists why the cabinet approved them if they were
unnecessary. "Is it bad we are revealing our shortcomings now?" he
asked.
He also stopped short of revealing the names of individuals
or organizations that were paid for the services, saying only
non-governmental and international organizations were involved. He
added that all those found guilty in those wrongdoings would be
held accountable.
In a recent meeting, the prime minister has instructed the cabinet
members to stop using WB loans to solicit consulting services as
there is no need to do so.
Tert.am
02.06.11
Speaking at today's cabinet meeting, Armenian minister of labor and
social affairs said an internal investigation has revealed large-scale
abuse of funds in projects funded from World Bank loans.
Minister Artur Grigoryan said that in 2006-07, the ministry
utilized big amounts on consulting and law-drafting works that
were unnecessary. Besides, the minister pointed to the significant
differences in the fees paid for similar consulting services.
For example, the ministry had paid $28,000 for the consulting services
to draft three laws aimed at improving the mandatory social security
system, while it had cost the government $45,000 to solicit consulting
services over the system's funding mechanisms.
Those projects - implemented in 2005-07 - were approved by the
cabinet of ministers, the minister said, but shunned a direct answer
when asked by journalists why the cabinet approved them if they were
unnecessary. "Is it bad we are revealing our shortcomings now?" he
asked.
He also stopped short of revealing the names of individuals
or organizations that were paid for the services, saying only
non-governmental and international organizations were involved. He
added that all those found guilty in those wrongdoings would be
held accountable.
In a recent meeting, the prime minister has instructed the cabinet
members to stop using WB loans to solicit consulting services as
there is no need to do so.