Vigen Sargsyan promises that tangible results will be registered in the nearest future in fighting "shadow" in defense sector

ArmInfo. The Armenian  parliament has discussed in first reading the draft law "On  compensation for harm to life or health of servicemen defending the  Republic of Armenia", and the package of relevant drafts. 

When presenting the document Defense Minister Vigen Sargsyan stated  that after the April war it became evident that funds of state budget  are insufficient for compensating harm to servicemen.  It also became  clear that additional sources of financing and a new system should be  created. "As a result, upon the Armenian President's instruction the  given draft was developed and presented, which implies introduction  of social system of compensation via consolidation of state and  public assistance", Sargsyan stated. He informed that according to  the draft the families of the killed and first degree handicapped  individuals will receive a onetime compensation of 10 million AMD.   The families of the second degree handicapped servicemen will receive  a onetime compensation of 5 million AMD. Monthly compensations in  case of death of the serviceman or the first degree handicap will  make 300,000 AMD for the officers, 250,000 AMD for the junior  officers and 200,000 for the privates. In case of becoming the second  degree handicap, the compensations will respectively make 200,000;  150,000; and 100,000 AMD. That amount, in the form of insurance  benefit, will be paid out for 20 years, which will make 82 million  AMD for the officers, 70 million AMD for the junior officer staff,  and 58 million AMD for the privates. The program will be financed  through a special fund to which every working person will monthly  contribute one thousand AMD.  The fund sources will become the  granted assets, stocks and bonds emissions, and charitable amounts.  The Government of Armenia, Central Bank and the Board of trustees  will administrate the Fund. The operational costs should not exceed  0.5%, and the assets management costs - 2% respectively. The system  is to be implemented starting with January 28, 2017. According to the  Central Bank Head Arthur Djavadyan's statement, the Central Bank will  manage the fund during 5 coming years free of charge.  

According to him citizens who earn minimal salary will be released  from this payment. The state will pay for them 230 mln drams.  Families of conscript soldiers, handicapped military servicemen and  killed servicemen will also be released from payments. He also  informed that three representatives from civil society, as well as  one oppositionist MP will be involved in the Fund's Board of Trustees  in order to ensure transparency of its work. 

Sargsyan said that he is informed about wide public debates on the  draft and has learnt about the criticism against him, the authorities  and Defense Ministry. Touching upon the opinions that it would be  better to return funds stolen by certain officials of the Defense  Ministry instead of creating funds the Minister stated:  "If relevant  agencies reveal such persons, who enriched themselves at the expense  of army they surely must be punished and stolen funds should be  returned to budget". At the same time the Minister was doubtful that  it is possible to steal funds allocated to the Defense Ministry and  the Armed Forces. However, he stated that the Ministry has already  launched work on fighting "shadow" and expressed assurance that  tangible results will be registered in the nearest future. 

Answering to the comments that the initiative is not socially just,  as it does not consider the families of servicemen who were killed or  became handicapped prior to the adoption of the law, Sargsyan noted  that he agrees with these opinions. "This is the most we can do", he  noted, stressing that if miracle happens and there are no casualties  in the army after the adoption of the law the funds will be allocated  to families of servicemen, who were killed or became handicapped  before. 

Sargsyan also informed that he has applied to the government with a  request to direct all the available budget funds in the defense  sector, as "we have been given a task of full modernization of the  Armed Forces".