New Abuses Discovered in the 'North-South' Project

The investigation into the apparent abuses committed during the development and implementation of the 'North-South Road Corridor' project continues at the Main Investigative Department of the RA Investigative Committee. This was reported by the press service of the Investigative Committee.

Previously, it was announced that abuses were discovered in the execution of the 'North-South Road Corridor' project, resulting in an estimated damage of 23,553,817,000 AMD to the state.

As a result of extensive investigative and procedural actions within the framework of the pre-trial investigation, other criminal manifestations have been identified, leading to the initiation of two additional criminal cases that have been combined with the ongoing criminal case regarding the abuses in the development and implementation of the 'North-South Road Corridor' project.

Specifically, the investigation uncovered information that the director of a subcontractor company, performing asphalt works based on a subcontract in certain sections of Tranche 1 (Yerevan-Artashat and Yerevan-Ashtarak) of the project, committed fraud with the intent to embezzle other people's property in particularly large amounts. From November 21, 2014, to June 6, 2016, the company prepared execution acts, acceptance delivery acts, and tax invoices that indicated works valued at 771,652,520 AMD in accordance with contractual standards, whereas works valued at only 556,615,520 AMD of lower quality were actually delivered. This resulted in the fraudulent embezzlement of 215,037,000 AMD and caused damage to the state by this amount.

Based on new data revealing apparent signs of new crimes during the investigation, a new criminal case was initiated on May 24, 2019, under the provisions of Articles 178 (part 3, point 1), 214 (part 2), and 308 (part 2) of the RA Criminal Code.

Additionally, information was obtained during the investigation indicating that the director of the same subcontractor company maliciously evaded tax payments during the company's operational activities by acquiring fake documents from several companies without supply of goods or provision of services. These documents were introduced into reports submitted to the RA State Revenue Committee in violation of the law, leading to the avoidance of payment of particularly large tax amounts and thereby causing substantial damage to the state.

On April 30, 2019, a decision was made by the RA Investigative Committee’s Special Cases Investigation Department to initiate a criminal case under Articles 189 (part 3) and 205 (part 2) of the RA Criminal Code.

Based on sufficient evidence, on May 31, 2019, the actual director of the aforementioned subcontractor company was charged under Article 178 (part 3, point 1), Article 38-189 (part 3), and Article 205 (part 2) of the RA Criminal Code as an accused party.

As a guarantee for the compensation of damages, 200 million AMD was deposited into the account of the RA Investigative Committee by the accused. Additionally, a seizure was imposed on 31,900,000 AMD, 3 million Russian rubles, and 60,000 US dollars found during the search of his residence.

To clarify the exact amount of additional tax liabilities, tax audits have been scheduled for the mentioned company and several other companies that issued tax invoices.

The pre-trial investigation continues.