Home News Radio Liberty: ENA also included the sum for luxury car rental and services in its bid to raise electricity tariffs
News
2015 May
23

Radio Liberty: ENA also included the sum for luxury car rental and services in its bid to raise electricity tariffs

According to Radio Liberty Ektrak Service Co.Ltd has been winning the tenders of Electric Networks of Armenia (ENA) CJSC and has been renting its cars to ENA at 450 million AMD for 9 cars since 2011. Ektrak Service Co.Ltd registered in offshore zone, the British Virgin Islands, rented Lexus and other expensive cars to ENA CJSC, which had 250 million USD loss. By the way, the office providing luxury car rentals happens to be located in the main building of ENA. Artak Manukyan, Procurement Expert of Transparency International Anticorruption Center (TIAC) by comparing the facts does not exclude that the two companies are interrelated.

Gegham Karapetyan, who continuously won ENA tenders since 2011 and rented cars out at 450 million AMD (for 9 cars) is the owner of 100 percent shares of the company.  According to Artak Manukyan. “Ektrak Service seemed to be created only to provide services to ENA. If we have a thorough study we notice that it is created for ENA to provide services to itself.”

However, TIAC monitored public procurement and revealed that the company which was recognized the best in all ENA tenders did not provide service to any other company than ENA within the latest 4 years. “The company even did not bid for any tender.”

It is noteworthy that Ektrak Service Co.Ltd that rents out cars is registered in the Ministry of Finance as a company dealing with construction materials. In the opinion of Expert Artak Manukyan there are many such cases in Armenia, always verifying the same thing. “It is likely that we witness corruption in its classical expression.”

Gegham Karapetyan, owner of the company that rents cars out to ENA assured that they had no arrangement with the Russian company, and it is by accident that they happened to appear in the same building. In his talk to Radio Liberty he said that he rented cars out several times cheaper than the market price was.

Karapetyan does not consider that it violated law for being engaged in car rental service instead of importing construction materials as it was registered. “It doesn’t matter. This is a limited liability company, and it can implement any activity.”

In the list of cars for rent the most expensive was Lexus all-terrain vehicle for which ENA annually paid 9.56 million AMD. The next in price were Toyota Prado and Camry, the annual rent of which were 6 and 4 million AMD respectively. The Russian-owned company, ENA also rented 4 cars of Russian production, for which it annually paid 5 million 760 thousand AMD.

Besides, while renting the cars, ENA paid for car washing, operation, fuel and insurance, and all the expenses that are included in the bid to be submitted to Public Services Regulatory Commission (PSRC) to raise the current tariff for electricity by 17 AMD.

It should be reminded that ENA wants to raise the current tariff for electricity from 42 AMD to 48 AMD (respectively from 8 cents to 10 cents) per kilowatt-hour, and for this purpose the company has applied to the Public Services Regulatory Commission (PSRC).