Video: Building of Cultural Significance Sold to Offshore Company

Based on a letter received from the Prosecutor General's Office, factual data has been obtained regarding the preparation of materials in the Anti-Corruption and Economic Crimes Division of the Criminal Police. It was revealed that in 2001, officials from the State Committee for Real Estate Cadastre's "Central" territorial subdivision, through forgery, registered the building at 3 Abovyan Street as the property of a public organization. Subsequently, the head of that public organization, who also served as a senior official at the Ministry of Culture, disregarded the fact that the building is listed as a cultural monument and, acting against the interests of his official duties, misused his position for personal gain. He sent a letter to the Yerevan Municipality, knowing that the land of the monument is included in the list of lands that cannot be transferred to citizens or legal entities as property, with the intention of privatizing and alienating the land.

In response to the letter, the relevant official provided clearly false information, based on which the parcels of land were illegally registered as private property. Then, in 2007, the public organization alienated a portion of the building and land for 28 million 800 thousand drams to a limited liability company, violating the provisions of the contract signed based on the decision of the Mayor of Yerevan. That company carried out dismantling works on the cultural monument; the northern part of the building was demolished, and some windows were boarded up.

By 2011, the public organization again violated the provisions of the contract signed based on the Mayor of Yerevan's decision, investing the main building valued at 201 million drams and the land as a contribution in the charter capital of another limited liability company, registering its ownership rights over the said building and land. On June 27, 2012, a 100 percent share of the company was formally sold for 550 thousand dollars to one of the offshore companies registered in the British Virgin Islands, whose director was the wife of the son of the same senior official at the Ministry of Culture. Subsequently, through formal transactions, 50 percent of the said 100 percent share was transferred to the president of the public organization, 25 percent to the director's mother, while the remaining 25 percent remained with the offshore company.

As a result of the irregularities, the state suffered particularly large damages of 201 million drams. A criminal case has been initiated at the Criminal Police's Anti-Corruption and Economic Crimes Division on the grounds of abuse of official authority, official forgery, and the destruction or damage of historical and cultural monuments, which has been sent to the Investigative Committee.