Vayots Dzor Regional Administration Unjustly Transferred 149 Million AMD to Contractor for Poor Quality Work

The National Security Service of Armenia has investigated materials showing that on October 12, 2015, the Vayots Dzor Regional Administration signed a state procurement contract worth 149,160,000 AMD with several contracting companies for the restoration and improvement of the pedestrian walkway in the Arpa Gorge of Jermuk city. The contractor was obligated to complete the work according to the project volume, specifications, and deadlines, while the customer was to accept the completed work and make payments.

Within the framework of the contract, the leaders of the contracting companies exploited the contract's provisions and, with the assistance of the technical supervision company’s leadership, committed fraud with the intent to embezzle significant amounts of money. During the implementation of the project from 2015 to 2016, they performed less work than was required, misrepresenting that they had procured and installed products at exorbitantly high prices, resulting in the unjustified transfer of 149,160,000 AMD to the contractor companies for work that was either not done or poorly executed, of which 16.96 million AMD was fraudulently embezzled.

Furthermore, evidence has been obtained indicating that responsible officials from the Urban Development Department of the Vayots Dzor Regional Administration, regularly performing organizational and managerial functions, as the head and member of the commission accepting the construction facility for operation, failed to fulfill their duties. They did not officially record the fact of work performed below the required volume, allowing the contractor companies, with the support of the technical supervision company’s leadership, to fraudulently embezzle valuable property. To conceal this fact, they used a document reserving rights, which falsely presented the work as completed. This allowed the contractor leaders, aided by the technical supervision company, to embezzle 16.96 million AMD, resulting in grave consequences for the state’s legal interests.

A criminal case has been initiated in the Investigative Department of the National Security Service of Armenia under relevant articles of the Criminal Code.

Note: The suspected or accused individual is presumed innocent until proven guilty in accordance with the law of the Republic of Armenia and a legally binding court decision.