In a fantastic article published by Armenia Now on Friday, Vahan Ishkanyan examines the division of Yerevan among the various clans that control most of the wealth and political power in Armenia. Not only do they perpetuate the regime in place, but they also owe their positions to it. Unfortunately, it is all too true. Welcome to Armenia.

Officially, legally, constitutionally, the capital belongs to its residents, who through elections choose eleven prefects (the mayor of Yerevan is appointed by the President).

In reality, and in ways that matter most to average citizens and especially to small business owners, the city belongs to organized, sometimes criminalized, clans – “akhperutyuns”, or brotherhoods, that assert their power through their position or connections.

Like the fantasy of Hollywood gangster films, or an episode of “Sopranos”, this capital is owned by factions that sometimes battle for their turf; for their share of the income that is to be had from doing business the old fashioned way – through power and intimidation. They travel the city in convoys of the most expensive SUVs. Restaurants are cleared to seat them, while thick-necked body guards flank tables, pistols tucked into the fold of their sizeable waistlines.

The bosses have nicknames by which they are known, but not called to their faces. Many, too, are Members of Parliament, affording themselves the power to make the very laws by which their businesses are governed. (Recent changes in the Constitution have also yielded separation of powers that gives more autonomy to the National Assembly.)

Iskhanyan goes on to identify who’s who in this control of Yerevan at the expense of democracy, human rights, civil rights, the constitution and the rule of law. Virtually nobody in Yerevan will contest the information contained in this article save for those who are either blind, deaf and dumb, or part of the system that every single official and senior businessman relies on to keep their positions.

Clanship is expressed in varying measure throughout the capital. By large degree, no unified government system works in the city, as the leadership of each community is accountable to a clan of the power system. To be elected a prefect, a senior community member or a deputy, one needs to have “prakhod” (in Russian slang, “pass”) that is, permission from some clan or official, to be elected. And, for business, you need “dabro” (confirmation).

The main figures who grant “dabro” are the President, Prosecutor, Minister of Defense. In the second echelon are the Prime Minister, Speaker of Parliament and Local Government Minister. The prefects in their turn grant “prakhod” or “dabro” to businesses and territories.

The clan of Aparanyans (officially the “Nig-Aparan” compatriotic union, which is headed by Aghvan Hovsepyan, the republic’s Prosecutor General, one of the closest associates of President Robert Kocharyan) seized power in Yerevan’s Ajapnyak community after a long battle. (In the 1950s several villages were relocated here from the town of Aparan.)

Hovsepyan was first appointed Prosecutor in 1998. After the October 27, 1999 Parliament assassinations, Kocharyan (under pressure, some say, from influential opposition members) dismissed Hovsepyan.

In 2004, when the political opposition was attempting a revolution, the President reinstated Hovsepyan as Prosecutor General. Hovsepyan immediately instituted criminal proceedings against the opposition and arrested dozens of citizens in an act that drew widespread international criticism.

Hovsepyan is one of the owners of the “Shant” factory operating in Ajapnyak and of a restaurant complex bearing the same name, which is one of the biggest complexes in the republic.

The struggle for domination in Ajapnyak increased in 1999 when the Republican Party and the Aparanyan clan clashed. The candidates for the community’s prefect were Republican Party member Ashot Aghababyan (nicknamed “Burnash”) who is the director of Hrazdan Stadium and the owner of the adjacent fair, and Artsrun Khachatryan (known as “Tsivo”).

On July 11 that year, the day of community elections, Aghababyan’s people assaulted polling stations, beat proxies of the opponent, firing automatic weapons. Artsrun Khachatryan’s brother was wounded in the melee.

[…]

The bloodiest clan war happened on June 25, 2003, near a city dump in the district of Nubarashen. Ruben Gevorgyan’s nephew Arkady Gevorgyan, his friend – deputy head of the healthcare department of the Ministry of Defense Garik Harutyunyan, and the driver of the car in which they were riding were killed by men firing Kalashnikovs. Another nephew received serious wounds.

Ruben Gevorgyan was arrested five months later on suspicion of masterminding an attempt on Samvel Alexanyan’s life. Later Alexanyan and Gevorgyan signed a peace deal and Gevorgyan was released from custody.

[…]

In the spring of last year, it was decided by the upper echelons of power to give the district of Avan to the clan of the Prime Minister. The residing prefect resigned, and, with the cards on the table as to the movement afoot, the Prime Minister’s son, 27-year-old Taron Margarian was elected on May 22. Other opponents dropped out of the election, leaving junior Margaryan as the only candidate.

(Some political observers believe the community was given to the Prime Minister’s clan, as patronage, in case he should be removed from office.)

The community of Erebuni is widely considered the most clan-dominated. Prefect Mher “Tokmakhi Mher” Sedrakyan has been in power there since Soviet times. Sedrakyan enjoys the sanction of the Minister of Defense. He also controls an enterprise that seems straight out of Hollywood, as he is the authority over Tokmakh Gyol, the city’s most prestigious cemetery, where to make a reservation six feet under costs $25,000.

In July 2003, a Mercedes in which Sedrakyan was sitting at a gas station he owns, exploded, apparently from a bomb. Sedrakyan was severely injured. It is believed the attempted murder was related to business rival Misha Kalantaryan, who, in the presence of several witnesses murdered businessman Hovhaness Manukyan. A court found him not guilty on the basis of “diminished responsibility”. The defendant didn’t even attend his own trial.

Last year Sedrakyan was re-elected Prefect of Erebuni. He ran unopposed.

An “independent” prefect like Sedrakyan, Gagik “Chorni” (Black) Beglaryan runs the Kentron district, in the center of Yerevan, and is known for his ties with Russian authorities and underworld.

[…]

The most lucrative businesses are situated in the center (hotels, a winery, etc.) whose owners are among the country’s authorities. It is said that because of Beglaryan’s connections the properties are exempt from tax. Beglaryan is also said to exert power over the media that guarantees only positive publicity about his activities. He is said to have aspirations to become Mayor of Yerevan.

[…]

One of the most powerful, most infamous and famous “akhperutyuns” of Yerevan is Gagik “Dodi Gago” Tsarukyan, who is a close associate of the President’s family, and a Member of Parliament since 2003.

Members of Dodi Gago’s akhperutyun clashed with another akhperutyun in the spring of last year at “Tetsi Krug” for control over a minibus route. A mob estimated at about 200 fought in a planned rumble that left one man dead and at least two injured.

[…]

Gagik Tsarukyan’s power extends to Yerevan’s satellite town of Abovyan and the village of Arinj. He also has territories in Yerevan. Two years ago he became the President of the National Olympic Committee of Armenia. During the Soviet years he was convicted for rape. But three years ago Armenia’s court expunged his conviction.

Recently “Prosperous Armenia”, a political party founded by Tsarukyan has become more active and is predicted to claim several spots in the 2007 parliamentary elections.

This is a very brave article, and 100 percent accurate. There are also many other names to mention, and this is just one reason why nobody is expecting the 2007 parliamentary and 2008 presidential elections to be democratic. There is simply too much for these guys to lose. Read the full article in English here, or in Armenian here.

While you’re at it, check out Armenian Deck of 52 to discover more about the often criminal and certainly corrupt businessmen and officials that are plundering Armenia. Everyone knows about this here, and it’s about time that some of those in the Diaspora that say that corruption and criminality is not a problem in the country knew it too.