Theft of Approximately 410 Million AMD Discovered at Electric Networks Operator LLC

The Criminal Investigation Department of the Yerevan Investigative Committee has revealed a case of theft amounting to about 410 million AMD at the "Electric Networks Operator" LLC, involving a leading official of the organization and several employees.

As a result of extensive investigative and judicial actions, evidence has been obtained indicating that the mentioned official, violating the company's charter requirements, misused his official powers. Between 2014 and 2019, he issued orders sending himself and 10 employees to Tbilisi, Georgia, allowing for the withdrawal of 24,727,872 AMD from the company’s financial resources, calculated for the number of days specified in the travel orders. However, it was found that these employees either did not travel or traveled for only part of the period specified, while submitting false documents reflecting the whole travel period approved by this leading official.

Consequently, he, with the assistance of the aforementioned employees, embezzled a total of 24,727,872 AMD from the company’s finances. During the same period, he also issued orders for providing three company drivers with a total of 640 liters of gasoline valued at 215,150 AMD for the purpose of travel to Tbilisi. However, the investigation revealed that these individuals did not actually travel but signed for and received the fuel, leading to the embezzlement of the 640 liters of gasoline with the help of the drivers.

Additionally, in May 2017, with the approval of the acting official, a sum of 200,000 AMD was disbursed from the company’s funds under the pretense of presenting gifts during a trip to Tbilisi in June of the same year. The investigation established that during that time, no employee actually traveled, and the acquired gifts were embezzled by the acting official with assistance from another leading official.

It was also revealed that the aforementioned acting official, by virtue of leading the computer and software service within the same company, was aware that services were provided by a company established and led by the person acting as the chief specialist and network administrator. He intended, with the help of the head of the financial department, the chief economist, and the mentioned company’s director, to carry out further theft. Specifically, under the guise of providing technical maintenance, current repairs, and software support services for servers and computer networks, a contract was drafted by the head of the department and signed by the network administrator with the referenced company. Violating legislative requirements, a purchasing contract was concluded with the company in September 2014, along with agreements to extend the contract period, without announcing a public procurement competition. However, it was determined that there was no need for such services as they fell under the primary functions of the company’s existing computer and software service. Between September 2014 and December 2019, a total of 168,480,000 AMD was paid from the LLC to this private company, money that was embezzled with assistance from the network administrator and other involved parties.

Moreover, it has been established that the acting official, lacking the authority to award additional salary payments (bonuses, allowances, etc.), unlawfully issued orders from January 2014 to June 2024 for extra remuneration with the assistance of another employee, resulting in an embezzlement of 216,328,750 AMD. Based on sufficient evidence, a public criminal prosecution has been initiated against the mentioned official under Article 256, Part 3, Clause 3 and Article 457, Part 2 of the RA Criminal Code. His preventive measures include a prohibition on leaving, suspension from office, and posting a bail of 25,000,000 AMD. Criminal proceedings have also been initiated against six employees of the LLC who assisted him, with five of them facing the combined preventive measures of prohibition on leaving and suspension from office, while one driver is subject to the prohibition on leaving. During the pre-trial investigation, a total of 31,459,445 AMD of the damages caused to the state has been recovered. The materials of the criminal case, including the accusatory conclusion, have been sent to the supervising prosecutor for approval and referral to the court.