Yerevan City Council member Pedro Zarokyan has raised a number of questions on his Facebook page regarding the transparency of public procurement and possible corruption risks. In particular, Zarokyan referred to a law passed in 2018 that allows companies organizing events to receive government orders without tender.
Zarokyan claims that since the adoption of this law, two interconnected companies, “Factory Production” and “Background Production,” have received over 7.2 billion drams in government contracts to date. Moreover, Zarokyan notes that the founders of these companies are former employees of H1, and that before becoming the head of the Yerevan Center district, Petros Petoyan handed over his marketing business to “Factory Production” under a trust management agreement.
Referring to the contracts concluded for the New Year’s decorations of Yerevan, Zarokyan suggests that the real value of the work performed by these companies is only 10-15% of the amount they charge. He believes that about $15 million has been “gifted” to some people. Zarokyan also criticizes the fact that the Yerevan Municipality has its own “Decoration and Service” NGO, which is not used, and instead millions of dollars are distributed to other companies.
The questions raised by Zarokyan require careful study and public discussion. The transparency and efficiency of the public procurement process are crucial to ensure the targeted use of public funds. The suspicions that have arisen should be thoroughly investigated, and the public should be provided with comprehensive information.