Friday, June 15 2018 19:31

ArmInfo. The Armenian government intends to transfer the accounts of all state non-commercial organizations (SNCO) from commercial banks to the treasury.

According to the Minister of Finance of Armenia Atom Janjughazyan,  after the Cabinet of Ministers introduced certain amendments to the  RA Law on the Budget System and a number of accompanying laws in  December 2017, it became necessary to revise this rule so that it  could serve the accounts of the SNCO procedure), and state funds and  joint-stock companies with state participation (on a discretionary  basis).

The Minister of Culture Lilit Makunts, who stated that she was  concerned about the project and suggested that it be postponed for at  least six months, responded the bill. In addition, the head of the  Ministry of Culture stated that during the interaction with the  organizers of international festivals, they refuse to pay to the  treasury account when making payments - fees and payments for  performances, wishing to work exclusively with commercial banks in  order not to deal with bureaucratic delays.

Janjughazian agreed that it is possible for SNCO to work hard, since  each time when purchasing, even in small volumes, they will have to  get permission from the state treasury. "Today, the accounts of these  SNCOs are in commercial banks, and there are no mechanisms for  preventive control over the use of these funds. This applies not only  to cultural but also to other SNCOs. The Ministry of Finance approves  the estimates, they also submit reports, but what happens during the  year, no one , in addition to the executive leadership of the SNCO,  was not informed," the minister said.  

As the Finance Minister explained, during this year  the SNCO accounts will be transferred to the treasury, and from  January 1, 2019, they will be subject to a preventive control  mechanism. And this, as specified by Janjugazyan, means that all  state structures will be obliged to fix them in the electronic  procurement system when concluding procurement contracts. Further,  when making payments that do not correspond to the expenditure items  of the document, the system will not accept payment orders for  execution. This, he noted, will become a deterrent mechanism for all  those who today use items of expenditure for other purposes, for  example, sending money from the salaries fund for repair work.