Armenia’s former president faces corruption and fraud investigation

Armenia’s Anti-Corruption Committee has launched a formal investigation into former President Serzh Sargsyan, revealing a complex scheme of corruption and illegal business dealings during his tenure in high government positions from 2000 to 2018.

According to Armenian media outlets, investigators have uncovered evidence that Sargsyan exploited his official status to conduct business through intermediaries, notably orchestrating the establishment of a bitumen manufacturing plant funded by foreign investments, Caliber.Az reports.

The investigation reveals that in 2006, Sargsyan, in collaboration with his proxy identified only as M. B., founded a company involving Russian firms based in Cyprus. In a move described as a bribe, M. B. transferred 22.5% of the company’s shares to Sargsyan’s son.

By 2013, the company declared bankruptcy, after which Sargsyan, via M. B., secured a $14 million loan to recover the investment.

The assets connected to M. B.’s business ventures were subsequently shifted to a newly formed company tied to his son-in-law, who purchased full ownership for $40 million, effectively establishing a monopoly over gasoline imports in Armenia.

The inquiry further details that Sargsyan demanded M. B. hand over $6 million to his son as compensation for the previously transferred shares. This payment was covertly funnelled through a fabricated loan agreement.

Facing serious allegations, Sargsyan is formally charged with accepting bribes and illegal involvement in entrepreneurial activities.

The Anti-Corruption Committee has forwarded the indictment to Armenia’s Anti-Corruption Court.

By Tamilla Hasanova