More than $6.2 billion was siphoned from Armenia from 2002 through 2011 as a result of government corruption, tax evasion and other illegal activity, www.azatutyun.am reports, citing the Washington-based Global Financial Integrity (GFI) watchdog.
The major reason is, according to the GFI, the worst investment environment in Armenia, economist Zoya Tadevosyan, an Armenian National Congress (ANC) member, told Tert.am.
“If we compare, we can see much lower investment levels in Armenia,” she added.
The second reason is the corrupt Armenian authorities, and foreign investors are well aware of that.
“The authorities are well informed of the situation. So the country’s political elite has no hopes for Armenia’s better future. They are well aware of what they are doing, and this is the cause of capital outflow,” Tadevosyan said.
For the past five years, about $1 billion a year has been siphoned from Armenia.
“The authorities are making a poor mouth, claiming they cannot raise pensions or solve social problems. They even say the people must support them as much as they can,” Tadevosyan said. Citizens that are patiently watching the authorities implementing their “plunderous policy” are voluntary participants in their crimes.
Since huge funds are in Armenian officials’ hands, the capital outflow is evidence the authorities do not see any future for the country, says ex-chairman of the Central Bank of Armenia Bagrat Asatryan.
According to the GFI, cash outflows from the country dramatically increased in 2007, averaging approximately $1 billion per annum through 2011.
Asatryan noted that the cash outflows include both domestic and foreign funds flowing through Armenia.
“It is common knowledge that Armenia is a transit country for siphoning funds from other countries, particularly Russia,” the economist said. So Armenia may be involved in money laundering.
“Numerous facts can be cited, including luxury housing construction,” he said.
According to the report, a total of $4.5 billion was siphoned from Georgia from 2002 to 2011. A total of $17 billion was siphoned from Azerbaijan.