12.11.2019 | In the course of the study of the prosecutor's office the main mechanisms of corruption abuses have been found out in the implementation of road construction programs

In the course of a study conducted by the Department for Combating Economic Crimes of the Prosecutor General's Office of the RA, it has been found out that 12 criminal cases have been initiated in the proceedings of the competent authorities of the RA regarding crimes committed during the implementation of road construction programs during the first 9 months of 2019.

 

By the criminal cases, a decision has been made to involve 14 people as accused, 9 out of them have been charged, and 5 have been listed as wanted and, in respect of the latter, decisions on the detention have been made.

 

For comparison, it is necessary to note that during the same period of 2018, 6 criminal cases have been initiated concerning the criminal manifestations registered in the proceedings of the competent authorities of the Republic of Armenia, within the framework of which one person has been involved as an accused.

 

In general, the damage caused to the state during the period of 9 months of 2018 and 2019, according to preliminary calculations, has made 23 billion 671 million AMD, and to communities - 18 million AMD. From the damage, about 227 million AMD have been  restored, and the sum of money in the amount of 2 billion AMD have been secured by procedural guarantees.

 

In some cases, by the construction companies have already been taken or are being taken measures to eliminate violations, to bring in compliance the unfinished or improperly performed works with established requirements.

 

It should be noted that 9 from this 18 cases initiated between 2018 and 2019 concerning the abuses found out during the implementation of the investment program of  North-South Road Corridor in the course of investigation of criminal cases initiated in the prosecutor general’s office of the RA and officials of a number of state institutions, heads of local and foreign commercial organizations and other employees, the head of the charitable foundation operating in the RA have been involved in these corruption schemes. A significant part of the damage found out and also restored, as well as people  subject to criminal prosecution are also within the framework of these criminal cases.

 

In general, an analysis of the actual circumstances of all cases of corruption abuses related to road construction programs has revealed the most common and schematic mechanisms. Accordingly, in some cases, the allocated funds by fraud, misappropriation or embezzlement have been stolen by the relevant officials by false executive acts.

 

Organizations that actually belong to the same or associated people without providing goods or services, presenting false documents, as well as providing false documents about expenses or incomes, made it possible to make reductions regarding VAT and profits. Thus, for the latter, conditions have been created for tax evasion by including false data in documents.

 

In another case, for example, in the process of implementing the North-South Road Corridor program, the president of the charitable foundation used his real influence out of his personal or group interests for the benefit of organizations associated with him, as a result of which, with these organizations contracts have been concluded.

 

Cases have been registered when the project of repair work and road construction, which contradicts the current norms of road construction, has been guaranteed as complying with the mandatory norms of the RA legislation and technical documents and on the basis of it state procurement has been carried out, contracts have been concluded, and asphalt laying works which haven’t correspond to the established standards have been carried out.

 

In the course of the study it has been found out that the main reason that abuses in this field have not been detected is that officials of the relevant state bodies with oversight and control competencies in relation to this process have not fulfilled or have not properly fulfilled their duties.

 

During the investigation of the mentioned criminal cases, measures are being taken to identify people, who committed abuses, to give legal assessments to their acts, as well as to fully identify and restore the damage caused to state and communities.

 

Criminal-legal fight launched in the direction of identifying corruption schemes that have been formed over the years in the field of road construction, ensuring the inevitability of punishment are the main guarantees not only of protection against misappropriation and disappearance, but also for the implementation of relevant standards, ongoing large-scale work, and ensuring proper state supervision for the implementation of these programs. The latter will be in the center of attention of the RA General Prosecutor's Office.