Gas Meter Data Tampered with: Defense Ministry Official Embezzles Funds

Corruption cases have been uncovered involving officials from the Ministry of Defense (MOD) who have accepted bribes, as well as committed fraud, embezzlement, and official forgery. More than 21 million AMD has been recovered from damages caused to the state. This information was reported by the Anti-Corruption Committee.

In a multi-episode criminal case investigated by the Anti-Corruption Committee, substantial frauds, embezzlements, and official forgeries have been revealed, alongside instances of bribery by officials from the Armenian Ministry of Defense.

The preliminary investigation revealed that after his appointment in 2018 as the commander of military unit N of the MOD, M.H. reached an agreement through the head of the financial service of the same military unit, S.P., with A.J., a representative of Gazprom Armenia, regarding the sale of unused gas allocated for the military unit, with the intention of embezzling funds destined for payment for gas consumption.

Consequently, between October 2018 and March 2019, under the direction and knowledge of M.H., the gas meter data of the military unit was tampered with through mechanical intervention, after which the MOD official S.P. confirmed every month the acts containing evidently false information. Based on these documents, the MOD ended up paying substantial amounts for gas that had not actually been used, exceeding 12 million AMD, which M.H. embezzled in collusion with A.J. Later, based on their arrangement, A.J. transferred 2 million AMD of the embezzled funds to M.H.

Additionally, it was determined that M.H. had similarly embezzled funds intended for electricity payments for the military unit. Specifically, he reached an agreement through S.P. with S.H., a representative of HEC, regarding the sale of the unused portion of electricity allocated to the military unit and receiving part of the proceeds back. Following this, M.H. confirmed every month the acts containing evidently false data regarding the electricity meter, which resulted in the state overpaying more than 11 million AMD for electricity that had not been consumed.

Continuing his criminal intentions, the commander of the military unit instructed N.V., the head of the communal operation service of the same military unit, to execute the illegal actions previously carried out by S.P., who had been dismissed from the financial service. During the period from 2019 to 2022, N.V. falsified the electricity meter data through mechanical intervention every month, for which more than 8 million AMD were additionally paid.

As a result, during 2018-2020, with the assistance first of S.P. and later of N.V., M.H. received and embezzled a total of over 4 million AMD from HEC.

The investigation also revealed that M.H. had demanded and received a bribe of 1,000 USD from H.H., the senior accountant of the military unit under his command, through S.P., for appointing H.H.'s wife to the position of head of the club of that military unit.

Moreover, during the investigation, S.P. was found guilty of embezzling over 8 million AMD. Specifically, it was found that S.P., while holding the position of head of the financial service of the aforementioned military unit and later another military unit, conducted unauthorized transfers from the treasury accounts of these military units to his personal bank account by using their identification cards and entering false information into the information system. He consequently embezzled a total of more than 8 million AMD, causing significant property damages to the state.

For the aforementioned criminal acts, M.H. has been charged under Article 178, Part 3, Item 1 (2 episodes), Article 314, Part 1 (2 episodes) of the former Criminal Code of Armenia, and Article 435, Part 1 of the Criminal Code of Armenia. S.P. faces charges under Article 38-178, Part 3, Item 1 (2 episodes), Article 314, Part 1 (2 episodes), Article 313, Part 1, Article 179, Part 3, Item 1, Article 256, Part 2, Items 2 and 3, and Article 445, Part 1 (2 episodes). S.H. and A.J. are charged under Article 178, Part 3, Item 1 of the former Criminal Code, while N.V. faces charges under Article 38-178, Part 3, Item 1 of the former Criminal Code.

More than 21 million AMD that caused damages to the state has been recovered during the investigation, and restrictions have been applied to the property belonging to the accused to secure the remaining compensation for the damage. The investigation for the criminal case has been completed. The materials of the case have been handed over to the supervising prosecutor with a proposal to bring them to court.