Justice Ministry in cooperation with VivaCell-MTS launches "Reducing  Corruption Risks in the Private Sector" program

ArmInfo.. The RA Ministry of Justice jointly with the VivaCell-MTS telecommunication company and the NGO "Harmonious Development" are launching the program "Reducing  Corruption Risks in the Private Sector", which is aimed at developing  simple, innovative and modern methods for identifying and  neutralizing corruption.

This was stated during the forum dedicated to this topic, which was held in Yerevan on November 19 with the participation of the Acting Minister of Justice Artak Zeynalyan and  his deputy Suren Krmoyan; Acting Minister of Economic Development and  Investments Tigran Khachatryan; VivaCell-MTS General Manager Ralph  Yirikian and other representatives of the public and private sectors  and non-governmental organizations.

During the presentation of the program, S. Krmoyan noted that the  main goal is to involve the private sector in the fight against  corruption and create a competitive anti-corruption environment,  which will help improve business efficiency in Armenia. "In this  issue there is no need to look for complex solutions, the most  effective is the introduction of non-traditional and innovative  tools," he stressed. As the Deputy Justice Minister explained, as a  result of the round-table discussions, the best solutions will be  chosen to help reduce the risks of corruption. These decisions will  subsequently be sent to the appropriate departments. "We attach  particular importance to holding today's event, as corruption impedes  the development of both the economy as a whole and business in  particular, reduces investment attractiveness and leads to social  injustice," S. Krmoyan added.

During the welcome speech, A. Zeynalyan noted that the launch of the  program is an example of successful cooperation of the state, private  and public sectors. At the same time, noting that the state cannot  fight corruption alone, the Minister of Justice expressed hope that  as a result of the event not only innovative ideas presented by  business will come to life, but it will be possible to establish a  strong connection with the business community to regulate  anti-corruption policies. In this vein, he added that business needs  to provide an internal environment in the company that will allow  identifying and neutralizing corruption risks. In other words,  measures should be taken to prevent the occurrence of corruption  within an enterprise.

In turn, the Acting Economic Development and Investment Minister  Tigran Khachatryan noted that corruption negatively affects  productivity. "If we talk in figures, then at the end of 2017, the  GDP per person employed in Armenia is $ 5.5 per hour, while in  developed European countries it's 80 euros and in the US it's $  60-65. "If we want to be competitive, we should not forget about  these figures," he stressed.

T. Khachatryan noted that it is not worth expecting high rates of  economic growth in the coming years without a significant increase in  the volume of investments in the private sector. "Foreign investors  are investing their money in places where a high level of  transparency is ensured and the rules within which the private sector  operates are understandable," he said.

Moreover, corruption risks, he said, may arise if, between the  shareholder and the executive management of the company there are no  corresponding mechanisms of power sharing. "In the absence of an  adequate level of corporate governance in the long term, such a  company will not be able to attract financing from the international  capital market and fulfill its future plans. We should understand  this and talk about it openly. Therefore, we must change our steps in  order to provide a competitive business environment in the medium  term, "he concluded.

During the event, the company's General Manager Ralph Yirikian shared  the company's successful experience in managing and assessing  corruption risks, noting that since 2013 the company has implemented  a "Compliance" system, which has created effective mechanisms for  identifying and analyzing corruption, assessing and managing risks  corruption relationships. At the same time, he noted that while  implementing the anti-corruption policy, the company is guided not  only by the RA Criminal Code, but also by the US Foreign Corrupt  Practices Act (FCPA) and the UK Bribery Act.  To recall, yesterday  VivaCell-MTS was awarded a certificate of compliance with  international standards ISO 37001 and ISO 19600 for anti-corruption  management and prevention of bribery, which happens for the first  time in Armenia. This is evidenced by the audit report of the  international professional organization "International Compliance  Association" (ICA).

To note, Viva Cell-MTS (MTS Armenia) is the leading mobile operator  in Armenia, which provides a wide range of voice and data services  throughout the country. VivaCell-MTS is one of the leaders in  innovation and development of the country's mobile communications  market.