Yerevan-based Nairit Plant as government members abuse their powers, Levon Zurabyan, the head of the Armenian National Congress (ANC) opposition faction in the Parliament said addressing Attorney General Gevorg Kostanyan in the Parliament on June 8.
"Yet in 2014, ANC prepared and published a reference on embezzlements at Nairit Plant. Dozens of millions of dollars were misappropriated, which resulted in suspension of the project of the plant's re- activation and huge arrears of wages. Why hasn't the attorney general responded to those embezzlements? Why haven't they inquired into the fact?" Zurabyan asked.
Earlier on June 2, Deputy Minister of Energy and Natural Resources Ara Simonyan said in the parliament the World Bank funded the audit of Nairit Plant that was conducted by the British subsidiary of JACOBS Company, U.S., and is over.
On May 13, Minister of Energy and Natural Resources of Armenia Yervand Zakharyan said reactivation of the Nairit Plant is not expedient by preliminary estimates of the World Bank. He said to reactivate the Plant at least $250 million are needed. In addition, he said, it is not clear if the Plant's production will be competitive on the world market. The minister recalled the heavy financial situation of the Plant that has been idling for already 4 years. The arrears of wages have reached 5.7 billion drams, exclusive of social payments and income tax. 1,700 employees of Nairit Plant were fired on Feb 6. A total of 478 employees remain at the Plant now.
Nairit Plant has been idle since April 2010. The Plant's shares were given as security against the CIS InterStateBank's 70 mln USD loan provided in 2006 for 5 years - till late Dec 2011 - at 12.5% p.a. In 2006, 90% of Nairit Plant's shares were sold to Rhinoville Property Limited (UK). The latter owns an 89,999% stake in the plant, Armenian Ministry of Energy and Natural Resources - 4,496%, Gazprom Armenia CJSC (previously ArmRusgasprom) - 3,596%, and Yerevan Thermal Power Plant - 1,907%.