The government’s grade for business

22/07/2005

By the decision made by the government of the RA, the “Hrazdan” sports
arena must be sold to Ashot Aghababyan for 88.5 million drams, which is
about $72,000 dollars. The fixed price is surprising if we take into
consideration the income received from the fairs near the arena.

There are many stores and booths around the fair and even small vending
tables on holidays. “168 hours” weekly tried to get some information
regarding the quantity and payments. The only exact information given
was the number of booths (240) and the price of a medium size booth
($520 dollars). It turns out that just by collecting the income of the
booths it is possible to pay the government’s fixed price. The
investments made during the course of 11 years($1,300,000 dollars) may
be returned by the booths in 11 months and the promised two million
dollar investment will be paid back in the course of 16 months. This is
the math.

Before any transaction resolution proposed by the government, the
president must validate that. Of course, the president may calculate
more carefully, receive the incomes of the stores and markets. But
won’t the government’s method of evaluating business cause any doubts?