Head of National Security Council: "Nairit" Plant Employees have no Confidence in Authorities

The process of paying the arrears of wages to "Nairit" plant employees has been started since July 15, Yervand Zakharyan, the minister of Energy and Natural Resources, said during the July 16 government meeting.

The arrears of wages have reached 5.310 bln AMD. The government has all the necessary resources to pay off the arrears. The problem is, the minister says, the employees have been promised the money today, however, some of them have submitted complaints on miscalculated salaries. The problem, the minister assures, will be solved in 1-2 days. There are some problems related to the documentation formulations. The process might take u to 10-15 days. However, the employees want to be fully paid. This might take up to a month.  Zakharyan has said "Nairit" employees will get their full salaries if they agree to wait till the end of the month.

Hovik Abrahamyan, the Armenian PM, is surprised for the Armenian government has been as good as its word. He does not understand why the employees keep protesting and what their demands are.

Gorik Hakobyan, the Head of National Security Council of Armenia, joined the discussion out of the blue and informed the interlocutors that the rally participants "have no confidence in the authorities".  "They fear part of them will receive the wages, while there might be no money for the other part. They have no confidence in the authorities. Who can claim that every single employee will fully receive their wages?" He urged the executive power to ensure that wages will be definitely paid.

Earlier, 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%.