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Official News

Tuesday, 23 October 2012

PM Reported About Serious Abuses Committed By Water User Companies

At the Prime Minister’s recommendation, the Financial Control Inspectorate of the Ministry of Finance conducted a study with Musaler, Masis, Nairi and Ashtarak water user companies and identified numerous violations

• All the inspected companies lacked irrigation water supply quota-related legal acts, regulations, internal policies and gauging devices, i.e., the mechanism of calculating the quantity of water supplied is absent.

• The receivable accounts were written out on an arbitrary basis, without accounting policy and legal grounds proper measures. No appropriate measures were taken to charge fees and membership contributions. For example, Masis, Musaler and Nairi companies in their 2010 and 2011 reports on financial results for costs in the amount represented by a few million more in revenue, a few million less.

Masis, Musaler, Ashtarak and Nairi WUA media by 2010. compared to 2011 and 2012 - the last time allocated to water users and water level reduction resulted in a calculated fee-collecting receivables growth compared to previous years.

At the same time, companies that received the proceeds of their accounts receivable and debt computerized database of registered debt and less revenue amounts are presented again in a few million.

• For example, Masis WUAs by 2010. January 1, debit debt debt amount less than the amount of information recorded in a computer database has been provided AMD 3 million 288 thousand, with accrued revenue amount less than the amount of base revenue represented as AMD 2 million 638 thousand.

The company’s accounting service wrote out AMD 18 million 353 thousand in accounts receivable, which is not reflected in the computer database: As per the 2011 results, the existing receivables were lowered by AMD 24 million 258 thousand in the computer database. The reductions of those made in the case, when in 2011. taking into account off existing accounting results have been

• Musaler less liability company registered in the 9 million 579 thousand AMD, Ashtarak in the first half of 2012 was 17 million 360 thousand.

• Nairi WUAs by 2010. January 1, debit debt debt amount less than the amount registered in the database of 1 million 864 thousand has been provided to the company debt accounts receivable balance in 2010. December 31, totaled 28 million 600 thousand. AMD, 2011. January 1, to 20 million 535.1 thousand. The result, 2012. January 1, receivables balance sheet compared to a database of information submitted to AMD 5 million 541 thousand.

The government reported that the WUA checked all plants maintained by water distribution books and information bases there were discrepancies between the information reflected in the supply books.

• 2011 was the year Musaler and Nairi WUA governance, without the acceptance of acts of, respectively, 19 million 509 thousand and 222 million, 283 thousand, were introduced as the primary means, and as a active on the gift. These formulations make use of the property without compensation contracts are signed and received no notary validation, as well as free use of property rights arising from the contract are not received in accordance with state registration.

• At the same time, Nairi WUA by 28 million 294 thousand AMD exploited the resources of the company in accordance with the accounting document not received
• The above mentioned companies are registered in the absence of initial documents supporting costs, fuel costs, as well as the ones there were before obtained presenting more facts:
• Verified all companies to expense the grant of organizing the design and construction guide Shopping law requirements.
• Masis, Musaler and Ashtarak WUA media is not in accordance with the design documents for construction and operation cost of making estimates.
• Masis WUA at the expense of the state grant, construction testing has shown that the construction of the total outstanding amount was 15 million 824 thousand recovery of these amounts is subject to a 11 million 81 thousand drams Musaler WUA in state grant on account of the construction permit issued overestimate volume of 600 thousand.

As a result, the head of government instructed the relevant authorities to punish those responsible for the aforementioned breaches.
 

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