03 march 2020

Damage in Particularly Large Amount Has Been Caused to State by Official

Damage in Particularly Large Amount Has Been Caused to State by Official

The National Security Service of RA, being faithful to the principle of eliminating various manifestations of corruption, within the functions, vested upon it by the law, aimed at countering corruption, as a result of operational and search measures and investigative activities undertaken within the framework of the criminal case - initiated back in February 2019 and being investigated in the Investigation Department of the NSS of RA in connection with the abuses of official powers by a number of high-ranking officials of the RA State Revenue Committee - received factual information, according to which, during 2009-2016, high-ranking executive official who held the position of the Deputy Head of the State Revenue Committee and then the position of the Deputy Finance Minister of RA and was implementing the functions of the representative of authority, abused the official position against the service interests due to personal and group interest − to provide material benefit to his superior's relatives.

In particular, the mentioned official, with the participation of officials and other persons who were dependent by employment on him, with the violation of the provisions of  RA legislation, ensured the sale, at a price considerably lower than market rates,  of 132,615 stocks of ''Hydroapparat'' OJSC − that were pledged by an economic entity to the State Revenue Committee due to the debt, AMD 80 billion, owed to the RA state budget − to the company established with the participation of SRC Head’s relatives and, besides, he also relieved, by his actions, this company from an obligation to invest money equivalent to EUR 5.000.000.

Besides, knowing that the company registered in an offshore zone by the relatives of his superior, the Finance Minister of RA, provided a loan, USD 6.000.000, to the economic entity on the property of which an attachment was levied in order to ensure the fulfillment of outstanding tax obligations, as well as proceeding from personal and group interest − to ensure the return of the loan − and ignoring the requirements prescribed by the law, using official position against service interests, he ordered the head of the corresponding tax inspection to take measures to eliminate the imposed attachments.

Due to the actions of the mentioned official, in both episodes, the state body has been discredited, its normal functioning has been disrupted, the relations in regard to ensuring the fulfillment of obligations, which are controlled by the tax authority, as well as the requirements of the law regarding the regulation of the process of selling the pledged property, have been severely disrupted, unequal conditions have been created for other possible participants of the sale process, which resulted in heavy consequences; a material damage, around AMD  125million, was caused to the state, and more than AMD 2.5 billion damage was caused to the company.

Due to the body of interrelated, credible sufficient evidence obtained in the case, according to the corresponding article of the Criminal Code of RA, the official, who had previously held the position of the Deputy Head of the State Revenue Committee of RA and then the position of the Deputy Finance Minister, was charged; written undertaking not to leave the place has been chosen as a measure of restraint. Preliminary investigation goes on.

Note: The suspect or accused of an alleged crime is considered innocent as long as his/her guilt is not proven in a manner prescribed by the Code of Criminal Procedure of RA - by the court decision entered into legal force.