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

06.08.2021 | Abuses in public procurement carried out By the former office of assistance to agricultural programs of the RA Ministry of Agriculture. Criminal case was initiated

Within the framework of the function of initiating a claim for the protection of state interests of the RA Prosecutor General's Office, were studied the results of the RA Audit Chamber regarding purchases carried out within the framework of the 2nd program for the management of agricultural resources of communities by the Office for the Promotion of Agricultural Programs (in 2017, the activity was stopped and a fund was created for development of agriculture). With a view to ensure the integrity of the study, the necessary information and documents were requested and received from the RA Ministry of Economy.

 

As a result, it was found out that within the framework of these programs, the Agricultural Programs Office of the RA Ministry of Agriculture purchased agricultural equipment and, according to the relevant decisions of the RA Government, the equipment was given to 113 cooperatives from 8 regions.

 

As a result of studying 9 agreements, it was found out that the price of the purchased equipment is significantly higher than the market value.

 

There are 3-5 companies in the competitions of the Office for Assistance to Agricultural Programs. For example, in one case invitations for bid were sent to 9 companies, at least 4 of which were founded by the same people. In another case, invitations were sent to 8 companies, at least 3 of which were founded by the same person. Moreover, these companies were the only bidders. There is no information in response to invitations from other companies, although the companies asked by mail or fax to confirm receipt of the invitation, participation or refusal.

 

It was also found out that the responsible people of the office on 25.12.2016 accepted a price offer for the supply of 4 trucks for 27.960.000 AMD of "K ..." LLC, and on 13.05.2016 - 6 trucks for 40.050.000 AMD and despite the fact that the companies participating in the tender were established by the same person, the supply agreements  were signed.

 

In addition to this, according to the mass media of production and distribution companies, price lists received from companies selling agricultural machinery and information on imports provided by the RA SRC, the market value of trucks purchased for 68.000.000 AMD is 44.391.200 AMD.

 

In fact, the responsible officials of the office during 2015-2016 by using their official position against the interests of the service, sent out invitations to companies founded by the same person. Lacking information regarding the refusal or participation in the procurement process, "K ..." LLC was recognized as the participant that offered the lowest price. As a result, the cars were actually purchased from a company established by the same person who applied for prices incomparably higher than market prices, which led to losses of about 24000000 AMD.

 

As a result of the study in the Department for the Protection of State Interests of the Prosecutor General's Office of the Republic of Armenia, a criminal case was initiated on the grounds of Part 2 of Art. 308 of the RA Criminal Code, and the preliminary investigation of the case was entrusted to the RA IC.

 

Notice: Every person suspected in or charged with a criminal offense shall be presumed innocent unless proved guilty in the manner prescribed by the RA Criminal Procedure Code and unless the verdict comes into legal force.