24,315,000 Dram Embezzled: Abuses in the Ministry of Culture's Activities in 2015-2016

The investigation conducted by the Public Interests Protection Department of the Armenian General Prosecutor's Office has revealed that on July 26, 2012, based on a project presented by the Mayor of Yerevan, the Government of Armenia adopted a decision on the investment program for the construction of the "World of Books" multifunctional complex at 36 Ezniki Koghbatsi Street in Yerevan.

According to this decision, a company proposed to build the "World of Books" multifunctional complex in connection with the 500th anniversary of Armenian printing and UNESCO's designation of Yerevan as the World Book Capital in 2012. The company committed to construct, using its funds, a new boiler room, and a rooftop concert hall with an area of 288 square meters on the school's corner building at the intersection of Ezniki Koghbatsi and Pushkin streets, in accordance with a construction contract for the P. Tchaikovsky Secondary Music School.

However, it has come to light that the complex has not been constructed to date. The government decision did not set obligations and deadlines for overseeing the construction of the complex, and no market valuation of the state property, consisting of the land plot and the boiler room, was conducted.

The investigation indicates that the company, having become the owner of the state asset of 335.3 square meters, was sold for 160 million drams in September 2016. By March 2019, the land was pledged to a bank, assessed at 194 million drams. This suggests that the market valuation included in the government decision contains apparent false data.

In June 2015, amendments were made to the government decision, stating that instead of the mentioned construction works for the P. Tchaikovsky Secondary Music School, the company should acquire musical instruments valued at 82,477,000 drams, with quality control of the instruments placed under the Ministry of Culture.

On May 12, 2016, an acceptance report was compiled for musical instruments valued at 83,611,570 drams. However, the audit initiated by the staff of the Public Sector Service found that the actual market value of 10 violins and 2 violas delivered to the Ministry of Culture valued at 47,265,000 drams (excluding VAT) was only 22,950,000 drams, showing a discrepancy of 24,315,000 drams.

This indicates that officials of the Ministry of Culture, with the assistance of the company's representative, included false data regarding the actual value of the supplied musical instruments in the acceptance report, embezzling substantial state funds.

As a result of the investigation, a criminal case has been initiated at the Public Interests Protection Department of the Armenian General Prosecutor's Office based on Article 179, Part 3, Subparagraph 1, and Article 308, Part 2 of the Criminal Code of Armenia. The criminal case has been sent to the Investigative Committee of Armenia for further investigation.

Note: A person suspected or charged with a crime is presumed innocent until proven guilty in accordance with the procedure established by the Criminal Procedure Code of Armenia by a court verdict that has entered into legal force.