Well-Defined Corruption Mechanisms Operated in High Voltage Electric Networks: Prosecutor's Office

The Anti-Corruption and Economic Crimes Division of the Prosecutor General's Office of Armenia has investigated the criminal cases initiated regarding violations and abuses registered at High Voltage Electric Networks LLC in the proceedings of authorized bodies of the Republic of Armenia. The investigation revealed that an organized corruption scheme has been operating in this sector for years. This was reported by the Prosecutor's Office.

Specifically, the analysis of the materials of the investigated criminal cases indicates that officials of High Voltage Electric Networks LLC, with the intent to embezzle contract amounts related to the performance of contractual works, made additions to the volumes of unexecuted works. Furthermore, false execution acts stating that the works were completed in full volume were prepared and signed by the company's employees. This scheme led to the embezzlement of particularly large sums of money.

It was also found that responsible officials of the LLC, by abusing their official position, embezzled particularly large material and financial assets entrusted to them, while the LLC's employees exhibited interest during the procurement process, which resulted in significant embezzlement of third-party property during the execution of contractual works.

Additionally, close associates of the director were hired in various positions within the LLC, who, with the knowledge and consent of the director, did not attend work for a long time and did not fulfill their work duties, yet received particularly large salaries. Through this mechanism, especially large sums were also embezzled from the High Voltage Electric Networks LLC.

As a result of the organized corruption schemes, there are a total of 7 criminal cases ongoing from 2018 to 2019 regarding violations and abuses registered at High Voltage Electric Networks LLC, initiated and being investigated by the Prosecutor's Office of Armenia and other authorized bodies. These cases were initiated on the basis of embezzlement in particularly large amounts through the abuse of official position (Article 179, part 3, point 1 of the RA Criminal Code), forgery (Article 325 of the RA Criminal Code), abuse of powers by employees of commercial or other organizations (Article 214 of the RA Criminal Code), and official negligence (Article 315 of the RA Criminal Code).

During the investigation, it was determined that the preliminary estimate of the damage caused by the mentioned criminal cases amounts to about 1 billion 109 million AMD, of which 20 million has already been recovered during the pre-trial phase.

The pre-trial investigation of the criminal cases continues. Necessary investigative and procedural actions are being undertaken under the prosecutorial supervision and procedural management to ensure a fully objective and comprehensive investigation of the criminal cases, to clarify the extent of the damage caused, to identify responsible individuals, and to thoroughly uncover the corruption mechanisms employed in their entirety.