Inadequate Housing Purchased for Elderly in Need of Care; Criminal Case Initiated

Based on a media publication, an investigation was launched in the State Interests Protection Division of the RA Prosecutor General’s Office, requesting and receiving documents from the RA Ministry of Labor and Social Affairs regarding the procurement process for small houses.

The investigation revealed that the Government of Armenia allocated funds for the purchase of small houses through an emergency one-person procurement mode, establishing a pre-estimated cost of 27,000,000 AMD for each house to the Ministry of Labor and Social Affairs. A responsible unit was designated and an evaluation commission was formed under the order of the Ministry's Secretary General.

According to the announced procurement procedure, a bid was submitted by N LLC, which was recognized as the winner by the evaluation commission for supplying two houses at price offers of 26,950,000 AMD and 26,730,000 AMD respectively. Under the real estate supply contract signed in 2019, the company committed to deliver small houses that should have at least two bathrooms and be suitable for habitation. A representative of the Ministry issued a positive conclusion regarding the execution of the contract without dating, no records of discrepancies were made, and the total amount stipulated by the contract was fully paid to the company.

A handover-acceptance act was signed between the representative of the Ministry and the company's director, which recorded that the company had delivered two private houses to the Ministry within the framework of the contract, deemed suitable for habitation and with two bathrooms.

However, according to preliminary data, it became apparent that one of the purchased houses needs roof and living space renovation, while the other requires significant renovation—its windows are old and wooden, with missing glass panes replaced by polyethylene bags, the roof is damaged, the first floor appears neglected with plaster falling from the damp walls and ceilings, while the floor, balcony, and ascending stairs lack proper railings. Although there are spaces designated for a bathroom on the first floor, they consist only of empty walls, and the internal condition is unsatisfactory.

The combination of information contained in the media publication and the data provided by the Ministry of Labor and Social Affairs indicates that the small houses do not meet the criteria established by the contract. Meanwhile, a fraudulent conclusion without a date was drafted, containing blatantly false information regarding the conformity of the supplied goods with the specifications, which served as the basis for their acceptance. Consequently, a false act was drawn up recognizing the transfer and acceptance of two private houses that supposedly meet contract standards.

This means that certain responsible officials of the RA Ministry of Labor and Social Affairs, having misused their official position for personal gain, committed an official forgery, resulting in the procurement of non-compliant goods for which 53,680,000 AMD was unjustifiably paid, while the houses procured through the emergency one-person procedure are not occupied by elderly individuals requiring housing and care.

Considering that the investigation has obtained data indicative of apparent criminal offenses, a criminal case has been initiated under Article 314, Part 1, and Article 308, Part 2 of the RA Criminal Code in the State Interests Protection Division of the RA Prosecutor General’s Office, with an instruction to conduct a thorough, objective, and comprehensive investigation. The criminal case has been forwarded to the RA Investigative Committee for further inquiry.