Urgent: Charges Filed Against Serzh Sargsyan by the Special Investigative Service

The Special Investigative Service of Armenia has filed charges against former President Serzh Sargsyan based on sufficient evidence gathered during the pre-trial investigation of a criminal case. The accusations stem from Article 38-179(3)(1) of the Criminal Code of Armenia, alleging that Sargsyan committed a publicly dangerous act by using his official position between April 9, 2008, and April 9, 2018.

Specifically, from January 25 to February 7, 2013, he is accused of orchestrating the embezzlement of a substantial sum of 489,160,310 AMD through the misappropriation of state funds by a group of officials. According to the charges, on January 24, 2013, the government approved a state assistance program aimed at providing diesel fuel at affordable prices for the agricultural work of land users in the spring of 2013. This program was intended to sell 17,041,300 liters of diesel fuel based on applications submitted by local governments and organizations within the Ministry of Agriculture.

Several suppliers, including 'Makhshur' and 'Flash' LLCs, expressed willingness to deliver fuel. Following discussions with a representative of 'Makhshur,' who offered the lowest price, the officials from the Ministry of Agriculture decided to recommend this company for approval by the government.

However, Sargsyan, aware of the existence of a cheaper supplier, recognized that signing a contract with 'Flash' LLC, which proposed a higher price despite the existence of a more favorable option, would result in a considerable unjustified withdrawal from the state budget. Undertaking actions motivated by personal interests to provide the maximum profit for 'Flash' LLC, he instructed his subordinates to contract with 'Flash' regardless of the lower bids from other suppliers.

As a result, on February 7, 2013, the government authorized the transfer of 1,789,336,500 AMD from the state reserve fund to the Ministry of Agriculture for the supply of 17,041,300 liters of diesel fuel, which was subsequently transferred to 'Flash' LLC’s bank account on February 21, 2013, based on a contract signed on February 14, 2013.

Furthermore, subsequent government decisions increased the required fuel quantity to 17,343,530 liters and the allocated funding to 1,821,070,650 AMD. Consequently, additional payments were made to 'Flash' LLC based on contracts up to a total of 12,088,334 liters of diesel fuel by June 28, 2013, leading to a subsidy amounting to 1,269,275,070 AMD.

Analysis indicated that had the quantities been supplied by 'Makhshur' at the proposed price, the subsidy would have amounted to merely 846,183,380 AMD, implying a wastage of 423,091,690 AMD from the state budget.

In total, through the actions organized by Serzh Sargsyan and involving several officials, 489,160,310 AMD was embezzled from the state during the execution of the stated program. Currently, a signature not to leave the country has been chosen as a preventive measure against Sargsyan, and the investigation continues.