Large Sum Embezzled from Ministry of Health During Coronavirus Pandemic

The Prosecutor's Office has confirmed an indictment regarding the embezzlement of 263 million 480 thousand drams from the Ministry of Health through fraudulent means and the misuse of official powers by the former Deputy Minister of Health of Armenia, and has submitted the case to the Anti-Corruption Court on April 25, 2024.

As a result of extensive actions conducted within the framework of the criminal case investigated by the Anti-Corruption Committee, it was revealed that the co-founder and director of one of the companies operating in the healthcare sector, B. Sh., and the senior nurse of the same company, L. H., organized and led the inclusion of false information in the medical histories of patients by the company's medical staff (regarding the treatment of patients in resuscitation departments).

Consequently, from July 2020 to February 2022, over 20 medical staff members of the company forged 829 medical histories, containing clearly false information about the course of illnesses, stating that the specified patients received treatment not only in somatic departments but also in resuscitation units. Based on these forged medical records, the documents submitted by the company's director to the Ministry of Health were considered accountable. As a result, the Ministry calculated and unjustifiably transferred an additional 263 million 480 thousand drams to the company’s account, apart from the funds allocated for services actually rendered.

Among other facts established by the criminal proceedings, B. Sh. informed L. H. that the Deputy Minister of Health, who oversees the provision of medical assistance and services, is his close associate, thus instilling in L. H. the determination to carry out his assignment. The person responsible for the triage of COVID-19 patients receiving treatment in hospital settings informed the Deputy Minister, during phone conversations and meetings, as well as through relevant reports, about gross violations identified in the process of treatment of COVID-19 patients at the specified medical institution.

The Deputy Minister of Health, who had the obligation to coordinate the necessary medical assistance and services for COVID-19, as well as its funding, failed to terminate and allowed the company’s funding, considering that B. Sh., the co-founder and director of the company, is his godfather. Additionally, he did not fulfill his duty of coordinating the necessary medical assistance and services for COVID-19 and, after being informed of the violations occurring in the company, failed to issue the necessary directives to address them.

On March 11, 2024, the prosecutor initiated a new public criminal prosecution against the former Deputy Minister of Health under part 2 of Article 308 of the Criminal Code (misuse of official powers resulting in serious consequences), and on March 19, 2024, against B. Sh. and L. H. under part 1 of Article 178 (committing fraud on a particularly large scale) and part 2 of Article 38-325 (organizing the forgery of documents by a group of individuals). The indictment confirmed on April 25, 2024, has been submitted to the Anti-Corruption Court along with the materials of the criminal case.

Notice: A person accused of a crime is presumed innocent until proven guilty in accordance with the procedure established by the Criminal Procedure Code, by a judicial decision that has entered into legal force.