Modernization of Defense Ministry Buildings Funded by 'Armenia' Fund, Reports 'Hraparak'

The fate of the funds transferred to the Armenian government by the 'Armenia' All-Armenian Fund remains unknown to the public. The chairman of the fund's board of trustees, President Armen Sarkissian, has yet to receive a 'clear, detailed, and transparent' report regarding the funds transferred to the government. This was reported by 'Hraparak'.

The press office of the President’s administration responded to the media that the government is required to present a report to the fund's administration, which in turn reports to the board of trustees, but as of now, no reports have been received.

'Hraparak' has obtained financial documents that provide insight into how the government has managed the funds received from the foundation. According to these documents, the government has received a total of approximately 85 billion 858 million drams from the 'Armenia' All-Armenian Fund. Of this amount, various government entities have already disbursed about 70 billion 81 million, leaving 15 billion 777 million undisbursed. It is noteworthy that the amount mentioned by President Armen Sarkissian was smaller, at 52.7 billion.

Upon examining the financial tables, it was discovered that almost anyone could benefit from the funds allocated by the foundation. Even the Prime Minister's office has dipped into these funds. Since the transfer from the foundation, the Prime Minister's office has received 1 billion 485 million drams for the modernization of postal services. This allocation was made on October 11, and it is surprising that during that time, the most pressing issue for the Prime Minister's office was the modernization of postal deliveries.

Under 'Other expenses', 139 million and 2.4 billion drams have been allocated to the Ministry of Foreign Affairs for the activities of diplomatic services operating in foreign states and international organizations. It is assumed that during wartime, they may have carried out propaganda activities in favor of the Armenian position, or similar work. The first tranche was provided in Russian rubles, which indicates that visits made to Moscow were also financed with funds from the foundation. Why didn't the Ministry of Foreign Affairs utilize the funds available in the 2020 budget for such activities, but instead sought additional money? No explanation could be obtained from the Ministry of Foreign Affairs.

Undoubtedly, the lion's share of the funds has gone to the Ministry of Defense, which is understandable. The defense ministry has received several allocations for military needs between September 30 and October 28, totaling 17 billion 403 million, 1 billion 476 million, 5 billion, and 2.3 billion drams. However, even in this regard, not everything is straightforward; the entirety of these funds was not allocated for purchasing weapons and ammunition. If we believe the documents we have, during the heat of the war, the Ministry of Defense has received funds from the 'Armenia' fund for 'improving the ministry's building conditions' and for the renovation of buildings and structures. As is known, these are the categories that practically provide great opportunities for undisclosed embezzlement.

For construction needs, the ministry has received funds several times in one month, totaling 14 billion 636 million 270 thousand, 363 million, and 19 billion 308 million drams. The Ministry of High-Tech Industry, whose head is Prime Minister's favored Hakob Arshakyan, has also received funds from the government three times—2.5 billion, 517 million 345 thousand, and 166 million 372 thousand drams—transferred from the foundation. The objective stated was the development of the defense industrial complex. Additionally, 966 million 125 thousand drams were allocated to the Ministry of Health for healthcare measures related to the state of war.

Our compatriots in the diaspora, cutting from their own mouths, were sending resources to war-torn Armenia for victory, helping the wounded, and for armaments, while our Prime Minister, in fact, has squandered these funds, managing them entirely at his discretion. Even the State Protection Service has received funds three times from the donations of our compatriots. On November 5, this service received two allocations of 420 thousand and 720 thousand dollars, while on October 16, it received 693 million drams. For what purpose?

No clarifications have been received from the Prime Minister's office regarding the documents in our possession. His spokesperson did not respond to our calls.

It should be reminded that according to Article 8, Part 6 of the Law on Foundations of the Republic of Armenia, the property of the foundation cannot be used for the benefit of its founders, members of the foundation's bodies, and so on. According to paragraph 5 of the statute of the 'Armenia' Fund, the founder is the Republic of Armenia. It appears that the Armenian government is violating the Law on Foundations by spending the funds of the 'Armenia' All-Armenian Fund at its personal discretion.