57,537,000 Dram Embezzled: Another Corruption-Related Crime Revealed

The Corruption and Economic Crime Prevention Division of the Police Department's Main Directorate for Combating Organized Crime has uncovered yet another corruption-related crime based on information received.

It has been established that between 2017 and 2019, the management of the "Syunik" Water Users Company, taking advantage of the negligent behavior of responsible officials from the Water Committee and their improper performance of duties, deliberately misused their managerial and other powers against the interests of the organization. Instead of installing measuring and accounting devices to record the volumes of supplied water in cubic meters, they recorded it in hectares.

By doing so, they effectively deprived subscribers of the opportunity to monitor the volumes of supplied irrigation water, concealing 30 percent of the actual water losses amounting to about 58,365,000 dram from the real total water losses of 60 percent during the water supply between 2017 and 2019. These losses were inflated on the account of the water users' usage volumes, and subsequently, during the same period, they collected an additional approximately 45,217,000 dram from subscribers by including these inflated figures in electronic registers.

Moreover, they received approximately 68,975,000 dram from the state in the form of subsidies, resulting in severe consequences for both the state and the water users.

According to currently known information from the investigation, during 2017-2019, the management of the "Syunik" Water Users Company incorrectly accounted for the financial means received from the state budget as expenditures for spring preparation works and repairs on fixed assets. At the same time, formal contracts were made with various individuals for providing various services; however, in reality, the services specified in these contracts were either not provided at all or were provided incompletely.

The embezzlement of 57,537,000 dram, a particularly large amount, was carried out for these purposes.

Preliminary data suggests that for selfish reasons, official documents, including execution acts for spring preparation works and several other papers, were destroyed to cover up the aforementioned crimes.

Furthermore, the management of the "Syunik" Water Users Company, knowing that the chief accountant registered in the company did not present himself for work and was employed elsewhere during 2017-2019, conspired with the company’s clerk to create, approve, and validate calculations of working hours as official documents. They included false information regarding the regular attendance of this individual at work and the actual periods worked, subsequently using these fraudulent documents to submit for payment, resulting in an unjustifiable salary amounting to around 7,278,000 dram being calculated and disbursed in this person’s name.

A criminal case has been initiated in the Main Directorate for Combating Organized Crime of the Police. The investigation is ongoing.