16 september 2021

Cases of Fraud on Especially Large Scales Within Framework of State Program in Process of Rendering Service, Abuse of Official Powers by Official and Official Fraud Detected

Cases of Fraud on Especially Large Scales Within Framework of State Program in Process of Rendering Service, Abuse of Official Powers by Official and Official Fraud Detected

As a result of the measures taken by the officials of Gegharkunik Regional Department of the RA National Security Service, it was established that within the framewok of “Territorial Development Foundation of Armenia” program, on 4 December, 2015, based on contract concluded between the president of the implementation committee of Tsakqar community of the RA Gegharkunik province-the head of the same committee and the head of the contractor company, the contractor was obliged to in accordance with the established order by the contract for 163.799.534 AMD, in the envisaged volumes, way and deadlines to implement the reconstruction and  repair works of the building of one of the kindergartens located in the same community, including the installation of a solar hot water supply system, in accordance with the procedure stipulated in the contract.

Under the contract the head persons of the contractor company, taking advantage of the opportunity provided by the contract, with the assisstance of the head persons of the company that carried out technical control over the performance of work, with the intent to steal money in especially large amount by fraud in 2015-2017during the reconstruction and overhaul of the kindergarten building, in particular when installing the solar hot water supply system of the building, used home-made and low-quality equipment, parts, presented that they were suitable for operation, while the solar system of the mentioned building was not used for its intended purpose from the date of installation, as a result of which the contracting company was unjustifiably transferred an especially large amount -11.999.165 AMD for actually unfulfilled or poor-quality work.

At the same time, factual data have been obtained that the head of the same community, being included in the commission for the mentioned contruction facility for operation, as a representative of the operating organization and local authorities, based on mercenary or personal motives, did not fulfill his official duties, namely, did not note the fact of poor-quality work performed and in a smaller volume, but, on the contrary, based on mercenary purposes or other personal motives, by prior agreement with other members of the addmission committee, on 2 October, 2017, drew up, approved and put into circulation an act of completion of construction, which is an official document, forged in content, which included false information that the work performed corresponded to the project assignment and were considered completed, which made it possible for the contracting company to commit the theft of an especially large amount of money through fraud - 11.999.165 AMD, for actually poorly performed or non-performed work, which negligently caused grave consequences to 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 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.