State Suffered Damage of Approximately 126 Million 334 Thousand Drams: Police Disclosure

According to factual data obtained from materials prepared by the Anti-Corruption and Economic Crimes Investigation Department, it has been revealed that the "Logistic Center" LLC, under the Ministry of Industry and Trade of Armenia, was included in the list of companies subject to privatization according to the law on state property privatization from 2001-2003.

In 2013, due to personal interests in privatizing the "Logistic Center" company to another limited liability company, competent officials of the State Property Management Department misused their official powers, contrary to the interests of service, and ordered the State Property Valuation and Assessment Agency to evaluate the company’s real estate and movable property. In the framework of this evaluation, the agency's officials, acting in the interests of the group due to a verbal instruction from management to assess the transferred property at a total of 200 million 537 thousand drams, also abused their official powers, failing to conduct actual inspections of the company’s movable properties, as well as applying inefficient methodologies for property valuation, including false information regarding the wear and values of the evaluated properties, and fabricated and approved false valuation reports and other acts, which were confirmed in June 2013 by the head of the State Property Valuation and Assessment Agency.

As a result of these irregularities, the values of the property of the "Logistic Center," which had a reproduction value of a total of 326 million 871 thousand drams, were artificially lowered by approximately 126 million 334 thousand drams, being valued at only 200 million 537 thousand drams. Subsequently, in August 2013, a government decision allowed for the sale of these properties at a 30% reduced price of 140 million drams. Consequently, the state suffered significant material damage amounting to approximately 126 million 334 thousand drams.

A criminal case has been initiated regarding these incidents within the Anti-Corruption and Economic Crimes Investigation Department and has been referred to the Investigative Committee.