Criminal Cases Filed for Illegal Sublease Agreements in Darbas and Gugark Communities

The Prosecutor's Office is conducting a comprehensive investigation in various communities across 8 provinces of Armenia, based on the results of constant monitoring conducted by the State Revenue Committee, following an order by the Prosecutor General. The focus of the investigation is on the leasing and subsequently subleasing of state and community-owned lands, including agreements with telecommunications operators.

The Public Relations Department of the Prosecutor General's Office reports that in the context of extensive examinations initiated by provincial prosecutors, criminal cases have already been opened based on numerous instructions given to investigative bodies to prepare materials following criminal procedure rules. These developments include the restoration of damages caused to communities or the state, the annulment of sublease agreements concluded in violation of legal requirements, and the initiation of new lease agreements by communities.

For instance, based on materials prepared under the directive of the Syunik Provincial Prosecutor's Office, it was found that the former head of the Darbas community, R. Kh., signed a 25-year lease agreement for a 2-hectare land plot classified as agricultural pasture for an annual fee of 6,000 AMD on December 7, 2006. Subsequently, without taking steps to change the designation of the land plot, on December 20, 2006, he signed a subleasing agreement with a telecommunications operator for 300 square meters of the aforementioned area at a monthly fee of 40,000 AMD for 10 years. After the signing, a communication infrastructure object, namely a relay station, was installed, amounting to approximately 6,360,000 AMD paid so far. Throughout this period, no actions were taken by the community head to halt or remedy the illegal land use.

This negligence on the part of the former community head led to significant consequences, with a total of 6,282,000 AMD not paid to the community. In relation to this case, a criminal case has been initiated under Part 2 of Article 308 of the RA Criminal Code in the Syunik Regional Prosecutor’s Office. The former head of the Darbas community has been arrested and has fully compensated the damages incurred. Given this and the fact that he has provided confessional testimonies, a decision has been made to release A. A. from detention, with the pre-trial investigation ongoing.

In another case, based on materials prepared under the directive of the Lori Provincial Prosecutor’s Office, it was established that the head of the Gugark community, A. A., with the consent of the community council and being aware of the intention of a telecommunications operator to install and operate a relay station on community-owned land in exchange for a high rental fee, set up a competitive commission. He organized and conducted a formal competition for renting out the community property. Consequently, his wife was declared the winner, with whom a lease agreement was signed on June 1, 2007, for a community-owned land plot of 0.12 hectares for a 50-year term at an annual fee of 2,000 AMD. Shortly thereafter, on July 20, 2007, through his wife, the head of the community subleased a 0.02-hectare portion of the same land at an annual fee of 1,020,000 AMD to a joint-stock company. As a result, by 2019, he received a total of 12,236,000 AMD from the said organization for the use of what was essentially community-owned property, depriving the community of significant income in the amount of 12,236,000 AMD.

In relation to this incident, a criminal case has been initiated in the Lori Regional Prosecutor’s Office under Part 2 of Article 308 of the RA Criminal Code, and it has been forwarded to the Lori Regional Investigative Division of the Investigative Committee for further investigation. On April 24, 2020, the community head was arrested on direct suspicion of committing a crime. On the same day, he voluntarily restored 6,120,000 AMD in damages to the community and expressed his willingness to fully compensate for the remaining damages during the investigation. Considering these circumstances, and the fact that he also provided confessional testimonies, the investigative officer decided to lift restrictions on A. A. Meanwhile, a precautionary measure of a non-leaving signature was applied to his wife, N. K. The investigation continues. A request has been sent by the Lori Regional Prosecutor to the regional governor aimed at annulment of the aforementioned illegal lease agreements and initiating the process of forming new contractual relationships between the community and the business entity according to legal procedures.