Damage of 5.3 Billion AMD Because of Abuses by Yerevan Municipality Officials and “Sanitek” Company Competent Officers

Damage of 5.3 Billion AMD Because of Abuses by Yerevan Municipality Officials and “Sanitek” Company Competent Officers


Based on the information received from the Yerevan Municipality the Office of the Prosecutor General of the Republic of Armenia found out that in 2013 and 2015 the officials of the Municipality of Yerevan provided false information in the official documents of Sanitec International LLC and Sanitec SARL companies in regard with the evidence of professional experience, necessary technical resources, financial resources and work resources, assessing the compliance of companies with the qualification criteria set forth in the bidding as satisfactory.

As a result, the latter signed contracts for garbage removal and sanitation in Yerevan, including services in the winter months. The fact has been ignored that the conclusion of annual contracts for the provision of services under the basic contracts is subject to the provision of a guarantee given by a bank or credit organization or insurance company. Whereas, under contracts signed for 10 and 12 years, at the beginning of each year contracts for setting the contract price have been concluded in the absence of such a guarantee since 2014.

The study also revealed that two contracts signed in 2013 and 2015 provided for the supply and installation of a total of 16,000 items of metallic wheeled containers with 1100 liters capacity for which approximately 1,805,000,000 AMD was paid each year. However, the examination of the documents provided by the Yerevan Municipality revealed that only 5170 containers were inventoried, out of which only 99 were metal containers. Only 2553 containers were in good condition.

And according to data provided by two service providers, since 2014 under the contract with the Municipality of Yerevan, they have acquired and installed only 9907  with the capacity of 1100 liters. In addition, the contracts provided for the cleaning of 4,000 container platforms, while only 459 of them were built.

Thus, as a result of apparently false information or records entered into official documents by Yerevan Municipality officials, concluding agreements without a bank guarantee, abusing official position or failing to perform official duties caused approximately 5.313.721.900 AMD of material damage to the community causing serious consequences.

15:47 September 27, 2019


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