Defense Ministry Received Building for $500,000 Debt in 2004, Sold It to Another Bank for $90,000 a Month Later

The Ministry of Defense received a building with an area of 441.01 square meters from the Credit-Yerevan Bank in 2004, in exchange for a $500,000 debt owed to the state. A month later, the same property was sold to Anelik Bank for $90,000, resulting in a $410,000 loss.

This information was reported by the RA Prosecutor General's Office.

As part of a case concerning the protection of state (community) interests, the prosecutor's office in the Avan and Nor Nork administrative districts analyzed the transaction involving the property located at 27a Moldovan Street in Nor Nork. The analysis revealed that on May 17, 2004, a certificate regarding the ownership of the building at 27a Moldovan Street and the lease rights for a land area of 525 square meters was issued to Credit-Yerevan Bank. The land in question had been included in a list of lands not subject to expropriation by the Yerevan Mayor's decree number 697-A, dated April 27, 2004.

On June 1, 2004, a contract was signed between Credit-Yerevan Bank, represented by an authorized person, and the Ministry of Defense, which stated that the bank transferred the building and land to the ministry in exchange for the $500,000 debt. According to the contract, the ministry was obliged to return any amount exceeding $500,000 generated from the sale of the property to Credit-Yerevan Bank.

However, just one month and 12 days later, on July 13, 2004, the ministry sold the same property for $90,000—a loss of $410,000—to Anelik Bank.

Furthermore, a review of the Yerevan city general plan approved by the government on December 12, 2005, revealed that the area had been removed from the park boundaries and reclassified as land for public construction under unexplained circumstances. Notably, in 2006, the chief architect of Yerevan informed Anelik Bank that the land was not in the list of restrictions under Article 60 of the RA Land Code and could be sold, leading to the direct sale of the land for 2,375,100 AMD.

In 2007, by the order of the Mayor of Yerevan, an adjacent land area of 274.85 square meters was sold to the bank, along with a grant of a 239-square-meter area without permission for construction activities.

In 2018, Anelik Bank sold the property for 135,556,400 AMD to citizens A.V. and Ar.V.

On June 12, 2023, the prosecutor's office in the Avan and Nor Nork administrative districts submitted a report to the Anti-Corruption Committee. On June 13, 2023, a criminal case was initiated by the Anti-Corruption Committee under Article 308, Part 2 of the RA Criminal Code, pertaining to abuse of official power.

Notice: A person accused of a crime is presumed innocent until proven guilty in accordance with the procedures established by the criminal procedure code by a legally effective court decision.