Vahé Hovhannisyan Discusses Corruption Scandal and Criminal Proceedings Against Him

The Prosecutor's Office has not initiated any criminal proceedings against me, presumably because there is nothing criminal involved. This was stated by the Minister of Finance of Armenia, Vahé Hovhannisyan, during a conversation with journalists regarding a request submitted to the prosecutor's office to launch a criminal investigation against him.

It should be noted that lawyers had raised reasonable suspicion that the minister had engaged in corrupt transactions, particularly by taking an interest-free loan and changing the name of his company to that of his uncle. In addition, the company had also received tax benefits.

The minister stated that he has no concerns, as the lawyers have taken the facts from his declaration. “The Commission for the Prevention of Corruption has conducted an investigation or has already completed it. During this investigation, they requested certain clarifications from me, and I provided everything that was possible, including the statements of my accounts, detailing what income I had and in what areas I made those expenditures, where it is evident what I declared,” he said.

He presented the “story,” according to which the company was established before his term in office, founded after the war in 2020. Along with a group of friends, they founded a technology park, which, as intended, would enhance Armenia's military capabilities through high-tech developments.

“One of my friends contributed that money in loan form as part of this process. It was decided that I would manage this company. Later, when the government decided in August 2021 that I should take on the role of Deputy Minister, it became clear that I could no longer engage in that activity, so I transferred that debt to a third party. To my knowledge, the company has completed its entire investment and is already active,” he explained. Regarding the receipt of benefits, he stated that he was not even aware of the benefit, but noted that like many other companies, they applied to the Ministry of Economy for benefits when importing equipment, and the Ministry of Finance only checks whether the documents are filled out correctly and according to the established format and that the benefit was obtained. “More than 50 companies have received benefits, and here the government does not have the discretion to make decisions. If the benefit were not granted, it would be a violation of the order,” the minister clarified.

Vahé Hovhannisyan insisted that he does not believe he has found himself in a corruption scandal. “Someone has decided to establish themselves at my expense,” he stated.