Vayk Mayor Signs Contracts Worth 537 Million Dram with Wife's Company: Hetq

The head of Vayk community in Vayots Dzor region, Mkhitar Matevosyan, has signed contracts totaling 537 million dram with a company owned by his wife. Interestingly, until 2022, Matevosyan himself led this company, but after being elected community head, he transferred his shares and management to his wife, Mari Margaryan. This was reported by Hetq.

According to data from the state procurement system armeps.am, in 2022, the Vayk municipality, represented by Mkhitar Matevosyan, signed four contracts with 'Mavshyn' LLC.

Under a contract signed on June 1, the company carried out pothole filling in the areas of apartment buildings in Vayk for 6.5 million dram. In a contract dated June 2, 'Mavshyn' LLC performed renovation works on Mayisyan and Shinarar streets in Vayk for 57 million dram. In a contract signed on June 6, the company received 67 million dram to construct an irrigation network in Zaritap village.

The largest contract between Vayk municipality and 'Mavshyn' LLC was signed a week ago on August 4. The company will receive approximately 405 million dram from the community budget for asphalting Shahumyan Street in Vayk.

According to the registry of legal entities, 'Mavshyn' LLC was established on January 16, 2013, by Mkhitar Matevosyan in his native village of Zaritap. Until February 16, 2022, he owned 100 percent of the company, but afterwards transferred both his share and the director position to his wife, Mari Margaryan.

On October 12, 2021, Mkhitar Matevosyan was appointed acting head of the Vayk community by Prime Minister Nikol Pashinyan's decision. In the local self-government elections on December 5, 2021, he led the list of the 'Civil Contract' party and was subsequently elected as the community head.

Data from the armeps.am system show that before becoming the Vayk community head, Mkhitar Matevosyan's 'Mavshyn' LLC had also participated in state procurement processes and signed 15 contracts with various state bodies, primarily with the Vayots Dzor Regional Administration and the municipalities of Vayk, Jermuk, and Yeghegnadzor. The total value of these 15 contracts amounts to 345 million dram.

Mkhitar Matevosyan has faced allegations of embezzlement of particularly large amounts.

Mkhitar Matevosyan and 'Mavshyn' LLC are also implicated in a criminal case. According to the Investigative Committee’s report from August 27, 2019, Mkhitar Matevosyan was accused of embezzlement when he was the director of 'Mavshyn' LLC. Specifically, in the competition announced by the municipality for the renovation of the community sports field and the improvement of a public garden, 'Mavshyn' LLC was declared the winner. For the implementation of these works, the Government of Armenia allocated a 120 million dram subsidy to the Vayots Dzor Regional Administration.