Former Director of 'Masis' Water Users Association Charged

As a result of extensive investigative actions conducted by the Special Investigative Service of Armenia's Investigative Committee, a number of circumstances surrounding apparent abuses discovered at the 'Masis' water users association, which merged into the 'Yerevan' water users association in 2017, have been clarified. This was reported by the Investigative Committee of Armenia.

According to the data obtained during the investigation, the former director of the company, having held the positions of chairman of the administrative council and then executive director from March 2003 to December 29, 2011, embezzled state property valued at a total of 611,072,640 AMD through mismanagement and fraudulent means, as well as participated in and prompted the falsification of official documents that exempted him and others from liability.

Specifically, it was established that, as the president of the administrative council of the water users association, on September 20, 2003, he signed a contract with the state committee for water management under the Armenian government on transferring the ‘State Irrigation Systems’ to the water users association for gratuitous use, according to which a pressurized irrigation pipeline of approximately 8 kilometers in length, valued at an initial accounting price of 134,062,500 AMD, was transferred to the association as part of the 'Masis' irrigation pump station along with various other main assets.

Subsequently, while holding the executive director position in the same company, and being obligated to manage and maintain the irrigation systems, he used his official position to systematically, from 2006 to 2010, dismantle and embezzle the above-mentioned pressurized irrigation pipeline valued at 611,072,640 AMD through unspecified individuals and equipment.

Additionally, by abusing his authority, he coerced members of a committee he formed to not conduct the annual inventory of main assets, falsely claiming that these assets were present and in their places. Acting in collusion, they included false information in the inventory list, stating that they had conducted an inventory in December 2011, confirming the presence of all main assets, including the stolen pipeline.

Moreover, similar false information was included in the acceptance act for the transfer of main assets due to the appointment of a new director in December 2011, where it was indicated that all main assets, including the aforementioned stolen pipeline, were present.

The falsified inventory list and acceptance act were signed by the director and members of the committee and submitted to the company’s accounting department. With sufficient evidence, the former director of the 'Masis' water users association has been charged under Article 179, part 3, clause 1 (embezzlement or misappropriation) of the Criminal Code of Armenia, and Article 325, part 2 (falsification of documents, stamps, seals, and forms) and Article 38-325, part 2. A signature prohibiting him from leaving has been chosen as a precautionary measure. The preliminary investigation of the criminal case has been completed, and the case has been sent to the prosecutor with an accusatory conclusion.