Criminal Case Launched Over Misappropriation in Renovation of Government Residences

According to Pastinfo.am, a criminal case has been initiated due to apparent abuses in the renovation of government residences, with the investigation assigned to the Investigative Committee of Armenia.

Earlier, it was reported by Factinfo that the State Control Service found violations during the renovation work conducted by the Kondi Residential Economy municipal entity, which operates under the direct supervision of the Prime Minister's office. This entity is responsible for the government residences where high-ranking officials live.

Back in 2019, significant publicity surrounded reports that around $2 million had been allocated from the state budget to renovate, refurbish, and furnish a government residence serving Prime Minister Nikol Pashinyan and his family. The funds had been allocated to the Prime Minister's office through a confidential government decision, and according to reports, millions were spent, including on purchasing toilets.

The State Control Service has deemed the renovation problematic as well. In response to a written inquiry from Factinfo, the State Control Service officially confirmed that violations were recorded in the 2019 works. “The State Control Service of Armenia has conducted ongoing monitoring of the Kondi Residential Economy municipal entity. The works carried out by the entity in 2019, including the renovation of government residences, have been monitored. A report on detected violations has been sent to law enforcement agencies,” the State Control Service informed on August 26.

Moreover, it has come to Factinfo's attention that a criminal case has already been initiated based on the preliminary materials. The documents regarding apparent abuses at the Kondi Residential Economy municipal entity have been sent to the Investigative Committee of Armenia, where a criminal case has been opened concerning the alleged crime under Article 179, Part 3, Point 1 (misappropriation or embezzlement in particularly large amounts) and Article 308, Part 1 (abuse of official authority) of the Criminal Code of Armenia. The preliminary investigation of the criminal case is ongoing,” the Prosecutor's Office stated in a written response to Factinfo.

It is noteworthy that the Prosecutor's Office, like the State Control Service, has refrained from mentioning the amount of money that has been misappropriated during the renovation works at the government summer residences. However, according to Factinfo, this amounts to around 250 million AMD. The Prosecutor's Office appears to be attempting to keep the circumstances of the criminal case as confidential as possible, as it has become a real headache for the investigative authorities.

As we have reported, the entity operates under the direct supervision of the head of the Prime Minister's office, and its director was the accountant for Haykakan Zhamanak, who also served as the chief accountant of the Civil Contract party. Additionally, the contracted company is linked to family members. Sources indicate that the renovation procurement was conducted from a single source, meaning no competition was announced and the winning company was not selected through a tender process, with the brother of Anna Hakobyan—MP Hrachya Hakobyan—acting as a guarantor for it. Thus, the corruption scandal touches upon not only those closest to Nikol Pashinyan but also the names and interests of family members, which is why they are refraining from the sensational aspects surrounding the criminal case.

The investigative body finds itself in a serious dilemma—whether to investigate the criminal case or to cover it up. Should it choose to investigate, it could lead to a political scandal that may not be forgiven by the authorities conducting the proceedings. Conversely, covering it up could lead to them becoming individuals committing official crimes.