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Armenian officials enjoy luxurious lives as nation struggles with poverty

18 September 2014 09:54 (UTC+04:00)
Armenian officials enjoy luxurious lives as nation struggles with poverty

By Mushvig Mehdiyev

While over one third of the total population of Armenia live under the poverty line, some state and government officials are enjoying a luxurious life.

Local media's reports about rich people really astonish Armenians, who are living on the edge. Average monthly salary in the post Soviet country is only $360, which offers a modest life. Armenia's population has declined in the past few years, now standing at 2.6 million.

The World Bank Data shows that 32.4 percent of Armenia's population live under the national poverty line. The share of the Gross National Income in the country is reportedly $3.79 per capita.

Meanwhile, media reports about MP Manvel Grigoryan's wealth have raised many questions about his sources of income.

Grigoryan was an army general before being elected as a parliament member in 2012, and his only source of income was his monthly salary.

His MP status also does not allow him to get involved in private business. So, how he managed to buy many real estates, companies and various facilities can be a matter of long debates.

He holds 35 separate pieces of real estate just in the village of Arshalouys in Armenia's Armavir region, hetq.am website reports.

His "kingdom" of assets in the poorest South Caucasus country is consisted of buildings, private houses, factories, natural gas and gasoline stations, resort areas, a restaurant, a sauna, a horse track, tens of hectares of grape and apricot gardens, hothouses, a market, animal stables, wheat fields and more.

Abusing his power, Grigoryan registered most of his assets in the name of other individuals to hide the real size of his wealth. He has not paid land and property taxes since 2008. For instance, Ara & Aytzemik Company owned by the former army general refuses to pay fees for the operation of its gasoline station and its outside advertising, despite receiving numerous notifications from Arshalouys municipality.

Armenian civil servant Grigoryan has also succeeded to grab a piece of the Lake Akna's shore in Armavir, although state property is recognized as untouchable in most countries. He has built a recreation area along the shore of the lake which does not appear on the official real estate map.

Grigoryan continued his illegal asset hunting in Zartonk village of Armavir region. Village residents said he bought a piece of land, marked it with a "Reserve" sign, and banned them from grazing their animals in his "reserved" land.

Grigoryan's son, Karen Grigoryan, who is the mayor of Etchmiadzin region, is a rich man. Using his power in office, Karen has built a palatial two-storey house on the outskirts of Etchmiadzin. Grigoryan also owns a market, a clothing mall, various stores, and a luxurious country house in the Etchmiadzin region.

The former army officer is in love with animals and is quite proud with a playground for a pet tiger, which belongs to the endangered species of felidae family, in his huge house in Etchmiadzin

When he became an MP on May 12, 2012, the general reported just two pieces of land in Arshalouys, two houses in Etchmiadzin and Arshalouys, and nine vehicles as his belongings. The whole size of Grigoryan's wealth still remains unknown.

A deep insight view into Grigoryan's income sources shows that the illegal business network has created a monopolistic economy in Armenia, which is kept in the hands of civil servant oligarchs. Inadequate response by the government allows the former army general to hide and expand his wealth, which includes illegally obtained assets.

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