High-ranking Officials Privatized and Subsequently Alienated School Buildings and Territory

The Investigation Committee of the Republic of Armenia has initiated extensive investigative actions within a criminal case linked to apparent corruption violations occurring at the "Yerevan Mikhael Heratsi State Medical University" foundation. Recently gathered data has revealed another instance of apparent criminal activity.

During the preliminary investigation, joint activities were conducted with employees of the National Security Service of Armenia, leading to information that from 2011 to 2018, Arman Sahakyan, who served as the chairman of the State Property Management Committee under the Armenian government, in collaboration with his associates, former Minister of Education and Science Armen Ashotyan and former MP Karen Avagyan, abused their official positions.

They allegedly acquired state property valued at 163,115,680 AMD, consisting of 2 separate buildings on a plot of land at 5 Nersisyan Street, Kanaker-Zeytun administrative district of Yerevan, through the company “Kids Qe” LLC, which was established under the names of connected individuals, including Sahakyan's assistant, Ashotyan's driver’s wife, and Avagyan's wife. This transaction was formalized with a public property alienation and pledge agreement in April 2015, committing to make payments over 36 months and included the necessary land plot of 0.303439 ha at a cost of 32,498,320 AMD.

Subsequently, Arman Sahakyan and his assistant, without any justification, modified the initial purchase agreement in a May 2015 agreement to exclude the pledged status of the property, thus enabling the royalty of ownership certificate to be issued unhindered prior to the complete payment of the property value. They then approached the State Committee of Real Estate Cadastre to obtain a unified certificate for the transaction. However, the issued certificate indicated the payment terms, preventing them from completing the transaction under circumstances beyond their control.

Following political changes in the country, the aforementioned individuals registered the aforementioned real estate, which includes the two school buildings, the fence, and a land plot meant for their maintenance, to sell in May 2019 under the name of “Kids Qe” LLC to a company owned by former Deputy Minister of Transport and Communications, Hrant Beglaryan, for 240,000,000 AMD.

Given that initial evidence of apparent criminal manifestations has been obtained, new criminal proceedings have been initiated under Article 441, Part 2, Points 2 and 4 (abuse of official powers by a group of officials with prior agreement) as well as Article 442, Part 2 (illegal participation in entrepreneurial activities by a group of officials with prior agreement) of the RA Criminal Code. The materials of the case have been sent to the RA Prosecutor's Office to determine jurisdiction over the investigation.