Nearly 5.7 Million Dram Stolen through Fraud from Yerevan State University Foundation; Case in Court

New factual data has been obtained regarding the procurement process for equipment purchased for the needs of the Yerevan State University Foundation within the framework of a criminal case initiated in 2019 concerning large-scale embezzlement. This was reported by the Prosecutor General's Office of Armenia.

Specifically, the investigation conducted by the Investigative Committee revealed that based on an order by the rector of the Yerevan State University Foundation in 2016, an evaluation committee was established for the procurement of electrical household equipment. The committee included President A.G., members M.S., K.M., S.H., and Secretary E.S.

The announcement and invitation texts for the procurement process were sent to the electronic addresses of individuals who signed a framework agreement, and a deadline was set for submitting applications. Only the husband of the procurement specialist A.M. from the Yerevan State University Foundation's procurement department, individual entrepreneur E.M., and the company “Marine-90” submitted bids for participation.

On May 31, 2016, the committee members demanded that E.M., who offered the lowest price, submit documents proving compliance with qualification criteria. E.M., the husband of A.M., misrepresenting the facts, sent a letter to the committee claiming that the technical specifications of the supplied electrical household equipment corresponded to the established specifications.

Due to personal interests and the decision not to announce a new competition, the committee members chose not to reject E.M.'s application, which evidently did not comply with the procurement procedures, and consequently, E.M. acquired electrical household appliances that differed from the technical specifications for 7,155,967 dram (19 refrigerators, 17 televisions, 23 air conditioners), for which the Yerevan State University Foundation issued a payment of 12,830,000 dram.

For the delivery of these items that varied from the technical specifications, acceptance acts were drawn up between E.M.'s individual enterprise and the Yerevan State University Foundation. Subsequently, the foundation transferred 12,830,000 dram to E.M. for goods worth 7,155,967 dram, resulting in E.M. fraudulently appropriating an unsubstantiated additional amount of 5,674,033 dram.

On April 28, 2023, during the investigation, a decision was made to terminate criminal proceedings against the accused S.H. under the provisions of the law adopted on November 1, 2018, regarding the declaration of a pardon in connection with the 2800th anniversary of the establishment of Erebuni-Yerevan and the 100th anniversary of the declaration of independence of the First Republic of Armenia.

On April 20 and 21, 2023, criminal proceedings were initiated at the initiative of the prosecutor against A.G., M.S., and K.M. under part 2 of Article 308 of the Criminal Code adopted on April 18, 2003 (abuse of official powers resulting in grave consequences), while E.M. is charged under point 3 of part 3 of Article 255 of the same Code (fraud in especially large amounts).

The supervising prosecutor confirmed the indictment on May 10, 2023, and submitted the materials to the Anti-Corruption Court.