Transfer of $107 Million to the Armenian Fund Leads to Deadlock; Fund is Losing Credibility

Yerevan.today reports: "The international audit has not confirmed the report on the "Armenia" All-Armenian Fund by the Armenian government, which calls into question the future of the fund," writes political scientist Andranik Tovmasyan on his Telegram channel. He adds that approximately $8 million transferred to the fund by the Diaspora has been cashed and embezzled by representatives of the regime operating in Armenia. "The absurdity is that neither the National Security Service nor the Prosecutor's Office has made any statement regarding this case, nor have they even attempted to create an illusion of conducting an investigation," he notes.

It is worth recalling that during the days of the war, the entire Armenian community was fundraising for the Armenia All-Armenian Fund, which organized the fundraising under the slogan "We are Our Borders." The scandalous information regarding the fund was first published by Yerevan.Today, revealing that billions of drams collected from the Diaspora for the needs of Artsakh and for victory during the war have "disappeared." We had written that approximately 80% of the $170 million raised was decided to be transferred to the state budget of the Republic of Armenia without the consent of the Board of Trustees of the fund, and the most absurd part is that the documentation for this transaction was framed as a donation to the state budget of Armenia. That money became an ordinary budgetary expense.

After the uproar, Deputy Prime Minister Mher Grigoryan confirmed that the funds had been transferred to the budget. Subsequently, the Ministry of Finance issued a statement indicating that this concerned 52 billion drams, or $107 million. The press later reported that the building of the Ministry of Defense was also renovated using the fund's money. The transfer of the fund's funds to the budget was determined by the decision of the Board of Trustees. However, participation in the Board meeting was highly selective.

Specifically, Yerevan.Today contacted the second President of Artsakh, Arkadi Ghukasian, who is a member of the Board of Trustees of the Armenia All-Armenian Fund; he stated that he had not been informed about the expenses outside the statutory purposes of the fund. Also a member of the Board of Trustees is the second President of Armenia, Robert Kocharian. Yerevan.Today also reached out to the second President's office to clarify whether he had been approached or informed regarding these expenditures. We received a response from the office that, "It has been over two years since any invitation, project decision, or document has been sent to the second President Robert Kocharian from the fund. The President has not participated in any events and has not been familiarized with or approved any decisions made by the fund, despite the fact that, seemingly according to the founding documents and regulations of the fund, he is a member of the Board of Trustees of the Armenia All-Armenian Fund."

Regarding the recently adopted decision suspected of corruption by which the fund's money (52 billion drams) was transferred to the Armenian government, the President was not aware of this action. We see the management of the funds of our hundreds of thousands of compatriots for purposes contrary to their desires and will as yet another step in the direction of undermining the confidence of the national structures by the current authorities of the Republic of Armenia. The funds raised for victory were, through an unclear and secret decision, transferred to the management of the symbol of defeat—the government. We believe this should be dealt with by law enforcement bodies, if such exist in Armenia still.

After this uproar regarding the transfer of the fund's money to the state budget, Armenian President Armen Sarkissian also spoke out. He, by virtue of his office, acts as the President of the Board of Trustees of the Fund. On November 6, the President was compelled to make a statement regarding the deepening distrust surrounding the fund. He said he was forced to invite an international audit to clarify the expenditures of the funds raised from compatriots under the name "We are Our Borders." President Armen Sarkissian emphasized that he had been against the directive of "taking" the fund’s money, proposing instead to frame it as a loan, but his opinion was not taken into account. The President demanded a transparent financial report from the Director of the Fund and justification for the expenditures. An international audit was called, which, according to political scientist Andranik Tovmasyan, has essentially given a negative conclusion, casting a shadow over the fund's future.

Additionally, the Telegram channel "Deja vu" reported on the disappearance of funds collected for the fund. The publication addresses purchases made by the government with the fund's money during wartime, which were significantly inflated compared to real prices. This refers to bulletproof vests purchased, according to the third President of Armenia, Serzh Sargsyan, at $600 each. "According to 'Deja vu' sources, these transactions during the war were coordinated and facilitated by four individuals: MP Hayk Sargsyan 'The Bottle Holder,' government advisor Eduard Aghajanyan 'DJ Edo,' Andranik Kocharyan, and Minister Hakob Arshakyan. These four figures allegedly initiated the procurement processes for wartime needs, funding it with money obtained from the Armenia Fund, circumventing the Ministry of Defense, with the aim of profiting as much as possible.

In addition to inflated purchases of bulletproof vests, there is another story where purchases supposedly amounting to $11 million are organized, the money is cashed, and to this day, neither that product has been delivered nor that money exists. These murky stories will undoubtedly be examined after a change of power, and we will soon publish more details regarding the lost $11 million and the inflated prices of bulletproof vests. However, it is noteworthy that despite all of this, law enforcement did not take any action to investigate this entire story.