Cases of Fraud in Especially Large Scale and Abuse of Official Powers by Officials in Process of Rendering Services Announced by Body of Territorial Administraton Detected
The materials prepared by Vayots Dzor Regional Department of the RA National Security Service contained factual data that on 12 October, 2015, on the basis of the public procurement contract number “AVD NPWA-01/5” (Administration of Vayots Dzor - negotiation procedure without prior publication of the procurement announcement) concluded between the administration of the RA Vayots Dzor province and a number of contracting companies, the contractor undertook to carry out works on the restoration and improvement of the pedestrian alley of the Arpa River Gorge of Jermuk city in the amount of 149.160.000 AMD in accordance with the voluminous estimate sheet, in the manner prescribed by the contract, in the volumes provided, in the form and terms, and the customer, represented by the administration of the RA Vayots Dzor province, undertook to accept the work performed and pay for it.
Within the framework of the contract, the executives of contractors, taking advantage of the opportunity provided by the contract, with the assistance of the executives of the company carrying out technical supervision of the work, with the intention of embezzling an especially large amount by fraud in 2015-2016 during the restoration and improvement of the pedestrian alley of the Arpa River Gorge of Jermuk city performed a smaller amount of work, presented that they allegedly purchased and placed goods on the alley at prices incomparably higher than the market prices, as a result of which the contracting companies for actually unfulfilled or poor-quality work were unreasonably transferred an especially large amount of 149.160.000 AMD, of which 16.96 million AMD was stolen through fraud.
At the same time, factual data were obtained that the competent officials of the Urban Planning Department of the Administration of the RA Vayots Dzor province, constantly performing organizational and administrative functions in a state body, being the chairman and member of the commission for the acceptance into operation of the specified construction object, for mercenary or personal interests, did not fulfill their official duties, namely, did not record the fact of work performed in a smaller amount, but allowed the contractors, with the assistance of the management of the company that carries out technical supervision of the work, in the process of restoring and improving the pedestrian alley of the Arpa River Gorge in Jermuk city in 2015-2016, fraudulently committed the theft of property on an especially large scale, and in order to conceal this circumstance, on 15 December, 2016, as part of the group, by prior agreement, they drew up and used a certificate of acceptance of a construction object for operation granting the right, in which these works were presented as completed, which made it possible for the executives of the contractors, with the assistance of the company that carried out technical supervision of the performance of these works, to fraudulently embezzle 16.96 million AMD, which, through negligence, entailed grave consequences for the legitimate interests of the state.
In connection with the incident, a criminal case has been initiated in the Investigation Department of the RA National Security Service on the grounds of the relevant articles of the RA Criminal Code.
Note: The suspect or accused of an alleged crime is considered innocent as long as his guilt is not proven in a manner prescribed by the Code of Criminal Procedure of RA - by the court decision entered into legal force.