Pension Reformers Get Salaries of a Few Millions

Last year RA Control Chamber conducted audit in RA Ministry of Labor and Social Affairs, in National Institute of Labor and Social Researches NGO and “Pension System Information Center” (PSIC) Foundation and revealed a range of stirring facts.

In 2012 and 2013 an agreement has been signed between RA Ministry of Labor and Social Affairs and “Pension System Information Center” (PSIC) Foundation costing AMD 80.794.1, and in 2014 a donation accord has been signed with total amount of AMD 64 million 318 thousand.

PSIC should have implemented public awareness on pension reforms, public education campaigns and events targeted at raising financial literacy.

RA Control Chamber investigated salaries paid to PSIC employees and civil-legal contracts signed with specialists throughout 2012-2015. It turned out, that rather high salary was paid to some employees of the Foundation—from AMD 453 thousand up to AMD 1 million 482 thousand, and positions of driver logistics driver, administrative assistant and two hot line operators aren’t included in the staff list confirmed by the Board of Trustees of the Foundation, and have been paid for performing work for “Nork” Information Analytical Center (IAC).

PSIC acquired petrol with the total amount of AMD 3.8 million, which it didn’t document, and it’s not clear, how much fuel has been allocated to this or that car.

“Illegal” trip sheets have been found out in PSIC, in particular, trip sheets including expenditures of AMD 800 thousand and AMD 1 million 10 thousand.

PSIC concluded deals on raising awareness with a range of enterprises on the basis of verbal agreements, totally it has paid AMD 30 million 701.5 thousand to 7 companies, however, it has violated RA Law “on Purchasing”, and for instance, instead of 20-minute video shot, for which AMD 1.7 million was paid to “Alfa Capital” LLC, it obtained a video shot with the length of 17.59 minutes, i.e. AMD 170.8 thousand has been an extra payment, which needs to be restored.

PSIC paid AMD 7.5 million to “AVE Brothers” for conducting a range of trainings, preparation of didactic and learning materials and for other works, however, there is no grounding for performance of work, and AMD 7 million has been paid 3 months before the work was completed, as a prepayment, without any ground. PSIC deals with some other enterprises have been concluded upon verbal agreement, without signing of any contract between the parties.

Despite all these, the Control Chamber recorded a shortcoming, that in the period of 2011-2015, from the day of foundation, audit hasn’t been conducted in a manner stipulated by law.

By Armine Vardanyan