Armenian ex-minister denies corruption allegations

YEREVAN, September 18. / ARKA /. Vartan Ayvazian, chairman of an Armenian parliament committee on economic issues and a former environment minister, denied yesterday allegations that he had demanded a $3 million bribe from U.S. Connecticut-based Global Gold Corporation company for not terminating its license for exploratory and mining operations at a gold deposit in Hankavan in central Armenia.

Mr. Ayvazian called a news conference to comment on a U.S. federal court ruling that he must pay more than $37 million in damages to the U.S. mining company that first had accused him of corruption back in 2006. According to him, the Global Gold was stripped of the license because of failing to honor its investments commitments for three years. 

According to media reports, in 2007, Global Gold filed lawsuits against Ayvazian and the government with the International Chamber of Commerce and the International Center for Settlement of Investment Disputes (ICSID) respectively. It subsequently settled the dispute with the government but pressed its case against Ayvazian. The company also took  the case to the U.S. Southern District Court of New York.

On September 5, the New York court ordered law-enforcement bodies to seize $37.5 million worth of assets from Ayvazian and transfer them to Global Gold. The order came almost two months after the court slapped the huge fine on the Armenian official.

Speaking to journalists, Mr. Ayvazian said he learned about it from the media and did not get any enforcement order. He said he had hired a lawyer in New York and would decide his future moves only after receiving formally the court’s verdict, but added that it can have “no legal consequences” because a U.S. court can have no jurisdiction over Armenian citizens residing in Armenia.

"No man could say that I had demanded a bribe," - said Aivazian.

Ayvazyan said the Global Gold Mining should take the case to the Armenian Administrative Court, and if his lawsuit is not satisfied it could take the case to European courts.

Aivazian did not rule out a link between the court ruling and his parliamentary activities.

"I told the National Assembly that non-ferrous companies which use hazardous substances avoid 40 billion drams in taxes a year," he said. ($ 1-409. 62 drams). -0-