Former Deputy Minister Caused 125 Million AMD Damage to the State: NSS

The National Security Service of Armenia, adhering to the principle of uprooting various manifestations of corruption, has obtained factual data regarding cases of abuse of official authority by several high-ranking officials of the State Revenue Committee from February 2019 onwards. This was done within the framework of the investigative division of the NSS, based on a criminal case opened and currently under investigation.

It has been revealed that from 2009 to 2016, the individual who held the position of president of the State Revenue Committee and later deputy finance minister abused his official position for personal and group interests, providing material benefit to relatives of his superior in violation of the interests of service. Specifically, this official facilitated the sale of 132,615 shares of the 'Hydroapparat' LLC at a significantly lower price than the market value to a company founded with the involvement of his superior's relatives, in violation of the provisions of Armenian legislation, as it pertains to obligations amounting to approximately 80 billion AMD owed to the state budget.

Additionally, knowing that an offshore organization associated with his superior, the Minister of Finance’s relatives, had provided a loan of 6 million USD to an entity, for which an asset seizure was imposed to secure unpaid tax obligations, he instructed the head of the relevant tax authority to take measures to lift the imposed restrictions. This was done despite the legal requirements and in contravention of the interests of service, based on personal and group interests.

The actions of the aforementioned official led to the discreditation of the state body on two occasions, disrupted its normal functioning, grossly violated the relationships associated with ensuring compliance with obligations under the supervision of the tax authority, as well as the legal requirements regulating the asset sale process. Unequal conditions were created for potential other participants in the sale process, resulting in serious consequences, with the state incurring a damage of approximately 125 million AMD and the organization suffering over 2.5 billion AMD in material damage.

Based on interconnected and sufficiently reliable evidence obtained in the case, charges have been brought against the former official who previously held the positions of deputy president of the State Revenue Committee and later deputy minister of finance, in accordance with the relevant article of the Criminal Code of Armenia. A restriction measure in the form of a signature not to leave has been selected. The investigation is ongoing.