[email protected]

STATEMENT: On the Draft on making Changes and Additions to Decisions N 723-L of 19 May, 2022 and N 932-L of 23 June, 2022 of the Government of the Republic of Armenia

2022-12-27 12:27

The CSO Anti-Corruption Coalition of Armenia calls on the members of the Government of the Republic of Armenia not to approve and process the amendments and additions to the above-mentioned decisions of the Government of the Republic of Armenia  posted for public discussion on the official Unified Website for Publication of Legal Acts’ Drafts of the Ministry of Justice of the Republic of Armenia (https://www.e-draft.am/projects/4885), (hereinafter referred to as the Draft), which envisages changes in the RA Government Decision No. N 723-L of 19 May, 2022 regarding the “Measure of Public-Private Social Interaction to provide Refunds to Pensioners from Non-Cash Payments” (hereinafter referred to as the Measure).

Both the Draft and the decisions of the RA Government referred to by it, which affect the rights of many thousands of RA citizens, have not passed any stage of public discussion on any platform of the professional community, including the Public Council attached to the RA Minister of Labor and Social Affairs. Moreover, only 574 users viewed that Draft, only 2 of them gave suggestions, no position was expressed on any of them and they were not adopted. The position and recommendations of the “Center for Economic Rights” NGO, a member of the Coalition, were not discussed either.

Taking into account the current geo-political and socio-economic situation in the world, evaluating the initiative and possible good wishes of the RA Government, including the support to pensioners, we find this Draft unacceptable on the basis of its unconstitutionality and discrimination and inequality between different social groups of the RA citizens, and based on their dangerous prospects of separating different layers of society and instilling hostility towards each other.

This Draft does not solve the serious social problems faced by RA pensioners and beneficiaries in the conditions of inflationary pressures and deepening and aggravation of poverty, but promotes the allegedly fair and equal social policy conducted by the authorities. 

Based on the legal regulations of the RA Constitution, we find that the decision of the RA Government N 723-L and the Measure approved by it are essentially anti-constitutional, they contradict the legal regulations defined in its articles 1, 11, 28 and 29 and accordingly the following are not supported.

  • The general economic well-being of all RA citizens who are potential beneficiaries of the Measure and social justice in the country,
  • Equality before the law of all RA citizens who are potential beneficiaries of the Measure.
  • Defines serious Discrimination depending on the property status, personal or other social circumstances of the potential beneficiaries of the Measure.

Along with the aforementioned, many points of the mentioned decision of the RA Government were not fulfilled and the main goals and expectations of the Measure were not met. Thus:

  1. Only 4 out of all 17 commercial banks currently operating in RA have been involved in the Measure;
  2. The action of the Measure is not extended to all pensioners and beneficiaries of RA, but to only 9 percent of them, the cardholders of 4 commercial banks that have joined the program;
  3. The main objective of the Measure implementation, to increase the purchasing power of pensioners, especially when purchasing essential goods and services, was not provided;
  4. the additional objective of the Measure implementation: to promote the execution of cashless transactions in the Republic of Armenia, to increase the knowledge of modern financial tools and technologies by consumers, particularly pensioners and socially vulnerable groups, to increase the prevalence of the applicability of said tools, was not achieved
  5. as a result of not fulfilling those goals, according to official data[1], within the framework of the Pension and benefit 10% refund program, around 50,000 pensioners and benefit recipients made non-cash transactions in October 2022, and they received a total of around 168 million drams in refunds for the transactions they made. In other words, only 9 percent of the RA pensioners took advantage of the Measure.
  6. 510,000 pensioners who are potential beneficiaries of the Measure and who receive their pension in a non-cash way, could not take advantage of the opportunities of the Measure.
  7. As a result of the above, in fact, the expectation of the implementation of the Measure was not justified, that is, 80% of the pensioners receiving a pension with a bank card will become the actual beneficiary of the Measure and receive the scheduled repayment for at least 3 consecutive months, until 31 December, 2022.

Based on official RA data, according to our assessment, as of 1, November 2022, 50,000 potential beneficiaries received a refund, which is only 12 percent of their number.

Based on the above, we suggest to:

  1. Send the Draft back to the Covernment and
  2. Suspend:
  • The implementation of the RA Government Decision No. N 723-L of 19 May, 2022 on approving the “Measure of Public-Private Social Interaction to provide Refunds to Pensioners from Non-Cash Payments”;
  • The action of the Measure approved by the aforementioned decision;
  • The action the Government of the Republic of Armenia Decision N 932-L of 23 June, 2022,

      3. Take measures։

  • To bring the above-mentioned decisions of the Government of the Republic of Armenia and the Measure in line with the Constitution of the Republic of Armenia, making them available to all potential beneficiaries of the Measure,
  • Take urgent steps to involve all commercial banks operating in RA in the implementation of the Measure, by signing appropriate contracts with all of them, without exception,
  • Not to limit the right and opportunities of the potential beneficiaries of the Measure to make a cashless transaction for all vitally unavoidable social and household services by the above- mentioned decisions.

Governing Board of the CSO Anti-Corruption Coalition of Armenia

26.12.2022