12.06.2020 | Multi-episode criminal schemes, 29 accused regarding the criminal case of North-South Road Corridor program. Interim results

Taking into account the importance of informing the public about the current results of the preliminary investigation of cases of abuse recorded during the implementation of the North-South Road Corridor program (hereinafter: Program), we report the following.

 

As previously reported, the data available by the criminal case obviously indicate that as a result of committing violations during the tendering process by competent persons, inefficient management of Program, lack of supervision over the implementation of work, unreasonable changes of the price and in content of the agreement, violation of the stipulated deadlines, for about 10 years, construction works on the North-South road were not completed, the expected goals and results were not fulfilled - reducing travel time, safe, high-quality and quick connection of the south with the north, promoting the development of economic and business relations, etc.

 

By the criminal case (Criminal abuse of officials responsible for Program, as well as organizations included in the Program, criminal activity of high-ranking officials), numerous episodes of official and economic crimes were revealed.

 

At this stage of the investigation, criminal prosecution has already been initiated against 29 persons, from them 4 are current and former officials, and the rest are heads and employees of organizations included in Program.

 

Regarding the direction of the investigation concerning tax evasion by presenting false documents that are the basis for taxation, as well as the preparation of false accounting documents without actually performing work or providing services for the purpose of money laundering by employees of organizations, and persons managing their activities, we note that at this stage of investigation was revealed damage caused to the state in the amount of AMD 4.211.416.057.

 

Thus. within the framework of the program “Reconstruction and improvement of the M1 road from Talin to Gyumri” between representatives of the Armenian branch of the contracting company “Sinohydro Corporation”, carrying out construction works on Talin-Lanjik and Lanjik-Gyumri land plots, and persons managing the activities of ''Stons'' LLC with the aim of reduction of taxes of the Armenian branch of Sinohydro Corporation, an agreement was reached on concluding without providing services, fictitious agreements, presenting payment documents and legalizing property obtained by criminal way. Within the framework of the above mentioned agreements, under the guise of acquiring services after the conclusion of agreements, including until 04.04.2017 through 7 transfers 1.162.260.574.5 AMD were transferred to ''Stons'' LLC. By the criminal scheme, the Head of Multi Group Company - S. A., together with 2 employees of the company, founded 2 companies with no purpose of entrepreneurial activity. The chief accountant of the company S. M. acting by the instruction of the above mentioned managers of ''Stons'' LLC with a view to conceal the criminal origin of the money received by the company, by transferring to these 2 companies money received from Sinohydro Corporation LLC, cashed out part of the money received and gave them to S. A. Without providing the services stipulated by the agreements, ''Stons'' LLC presented to the Armenian branch of Sinohydro Corporation LLC 7 false tax accounts in the amount of 1.167.409.328.31 AMD, which were accepted by the head and accountant of the company and these data were included with the purpose of tax evasion in the income tax report of the activities of the company for 2016 and 2017, (which in the manner prescribed by law is presented to the RA SRC) and in the calculation of VAT.

 

Only as a result of the above mentioned illegal transactions, at this stage of the investigation, damage caused to the state in the amount of 2.729.457.229 AMD was revealed.

 

With the combination of sufficient evidence, S. A. - Head of ''Stons'' LLC, 4 employees, 3 employees of Chinese organization were charged for tax evasion, for false entrepreneurial activity and money laundering.

 

Detention as a measure of restraint was chosen against S. A. and according to the mentioned decision was changed by an alternative measure of restraint – bail.

 

By the representative of the Head of Multi Group LLC - S.A. 1 billion AMD were returned to the deposit account of the RA IC as a guarantee for damage recovery.

 

The investigation of the case is still in process, information regarding the process and results by all areas of the investigation will be provided regularly

 

Դատախազությունը նշում է 102-րդ տարեդարձը և Դատախազության աշխատողի օրը

Contact Us

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Tel: +374 (10) 511-650

Fax: +374 (10) 

E-mail: info@prosecutor.am

 

Providing information

The RA Prosecutor’s Office Division of Public Relations, head of the Division – Arevik Khachatryan

Tel. (37410) 511-527