Deputy Minister of Economy and 6 Others Arrested

The Investigative Committee of the Republic of Armenia announced today the implementation of urgent investigative actions and other extensive procedural measures conducted jointly by investigators from the Investigative Committee and employees of the National Security Service. These actions are part of two separate criminal cases being investigated in two main departments of the Investigative Committee, including searches at the Ministry of Economy and various individuals' residences.

As a result of extensive operational intelligence actions undertaken by the National Security Service, and subsequent investigative and secret investigative measures carried out by the Criminal Procedure Main Department investigating crimes against the state, constitutional order, and public safety, it has been documented that officials of the Ministry of Economy have misused their official powers, facilitated by and in collusion with a group of individuals.

During the preliminary investigation, it was found that during the procurement process for the service of establishing the “Public Investment Programs Bank,” officials from the Ministry of Economy, with the instigation and assistance of the director and employees of a specific competing company, created conditions that unlawfully rendered another participant in the competition unable to participate, thereby ensuring that the competing company won the bid, in violation of the rules set by the Law on Procurement and the Government of Armenia's resolution No. 526-N from May 4, 2017. Consequently, the company submitted a price proposal nearly three times higher—over 392 million AMD—was declared the winner.

These actions resulted in violations of the rights and legal interests of the competing fund, causing significant damage to the state. Six individuals have been arrested under this criminal case as a result of joint operational-investigative measures conducted by the Investigative Committee and the National Security Service.

In another criminal case, which is being investigated by the Special Investigations Department of the Investigative Committee, it has been documented that an official of the Ministry of Economy, duly authorized, developed close relations with a beneficiary of the state support program for establishing intensive orchards. Knowing details about other beneficiaries through this connection, and despite the submission of documents that did not comply with the program's requirements, the economic ministry provided financial reimbursements to these beneficiaries without rejection. Instead, the official submitted reports stating that the works performed by the beneficiaries met the program's criteria and later requested payments to be made to them from the ministry's relevant department. As a result, considerable funds amounting to 238,418,100 AMD were improperly reimbursed to several beneficiaries of this program via bank transfers, which were fraudulently appropriated by the beneficiary and others.

The mentioned official was arrested during joint operational-investigative measures carried out by the Investigative Committee and the National Security Service under this criminal case. Active preliminary investigations are ongoing for both criminal cases. Should it be necessary, the Investigative Committee will issue an official report later.