Investigation Initiated Against Gagik Tsarukyan for Apparent Violation of Incompatibility Requirements

On July 6, 2020, the Anti-Corruption Committee initiated proceedings against Gagik Tsarukyan for apparent violations of incompatibility requirements. The basis for this investigation was the minutes from the general assembly of the Multi Group Concern LLC held on June 23, 2020, which was signed by Gagik Tsarukyan. The assembly decided to terminate the powers of the company’s director, Sedrak Arustamyan, and appointed Arayik Kesoyan as acting director, citing Sedrak Arustamyan's temporary inability to fulfill his duties.

On May 27, 2020, Gagik Tsarukyan submitted his annual declaration of property, income, and interests for 2019, which revealed that he had entrusted a stake in the Multi Group Concern LLC to Sedrak Arustamyan for the period between May 20, 2017, and May 20, 2022. However, an examination of the extraordinary general assembly minutes of the Multi Group Concern LLC dated April 23, 2020, indicates that National Assembly member Gagik Tsarukyan personally participated in the company’s management, proposed candidates for the company’s director, and was involved in the decision-making process regarding the dismissal of the director and the appointment of a new one, as well as issuing directives to the director.

According to Article 31, Part 1 of the Law on Public Service of the Republic of Armenia, individuals holding public office and public servants are prohibited from holding positions in state or local self-government bodies that are not conditioned by their status, engaging in entrepreneurial activities, or performing any paid work, except for scientific, educational, and creative work. Furthermore, according to Part 17 of the same article, violations by persons in public office of the incompatibility requirements specified in this article shall be grounds for the termination of their authority or dismissal from their position.

Taking into account these factual circumstances and guided by Part 1 of Article 24 and Part 1 of Article 27 of the Law, as well as Part 1 of Article 31, the Committee decided to initiate a procedure against National Assembly member Gagik Tsarukyan for apparent violations of incompatibility requirements. The initiation of these proceedings was prompted by a request addressed to the Anti-Corruption Committee from K. Karapetyan, the head of the State Register of Legal Entities under the Ministry of Justice of the Republic of Armenia.