December 16, 2020 – 17:16 AMT
PanARMENIAN.Net – Waste management company Sanitek has filed a lawsuit with the International Centre for Settlement of Investment Disputes (ICSID), demanding reimbursement of tens of millions of dollars for its investments in Armenia, according to a statement from the company’s management.
A number of criminal cases have been “unlawfully” initiated against the company, which have not been terminated yet, the statement said. Besides, it added, the Mayor of Yerevan has instructed the prosecutor’s office and investigative bodies to terminate contracts with Sanitek, with the aim of granting the agreements to a company owned by the municipality.
“In addition to the fact that the property illegally confiscated from Sanitek has been transferred to a newly-established company, the Yerevan Municipality is now spending at least 20 percent more money organizing the same services through its own company, without paying taxes, as evidenced by numerous publications. These actions result in the expropriation of Sanitek’s investment,” the company said.
“As a result, Sanitek group of companies was forced to cease operations and go bankrupt, which led to negative consequences for the company’s shareholders.”
Sanitek said the authorities have rejected any cooperation, leaving the company “no choice but to file a lawsuit against Armenia at the International Center for the Settlement of Investment Disputes (ICSID), demanding reimbursement of tens of millions of dollars of investment”.
In the summer of 2018, mountains of garbage were a common scene in the streets of Yerevan, with residents complaining and posting pictures of bad waste management practices in the Armenian capital. Numerous warnings from the city authorities about the need to organize sanitary cleaning of the capital yielded practically no results. The early termination of the contract between the city administration and Sanitek was first reported in October 2019.