ArmInfo. The Armenian National Interests Fund (ANIF) has embezzled budget funds, which is a serious crime against taxpayers. This was stated by the head of the Transparency International anti-corruption center Varuzhan Oktanyan during a discussion organized by the Public Journalism Club.
In a message received by ArmInfo from the Public Journalism Club, the discussions touched upon issues related to conflicts of interest and corruption in the process of state and municipal procurement.
Touching upon the decision of the Constitutional Court, which recognized the law on confiscation of property of illegal origin as consistent with the Constitution, Oktanyan expressed his conviction that this decision will complicate the work of law enforcement agencies.
He noted that it will now be difficult for them to prove the illegality of the property, since the Constitutional Court emphasized the need to establish a link between the acquisition of this property and the criminal activity of the official during his period of service in a public office.
"This decision is in line with the latest statement by Armenian Prime Minister Nikol Pashinyan that there is no need to be bloodthirsty, but to act according to the law. Let's say someone claims to have acquired this property in the 2000s. Law enforcement officers must find out what crime this person committed during that period that led to the acquisition of this property. It seems to me that it will be very difficult to prove this," Oktanyan noted.
Touching upon the latest example of such a conflict of interest, the expert recalled the deal concluded by Vagharshapat Mayor Diana Gasparyan. As Oktanyan recalled, Gasparyan purchased a gas station belonging to her husband's father for 13.6 million drams for the needs of the mayor's office. In this regard, the head of the anti-corruption center pointed to a systemic problem: not only companies belonging to officials' affiliates win tenders, but these companies can also be linked to deeper processes of property redistribution. "Here we are faced with a deeper problem, such as the redistribution of property," Oktanyan explained.
In turn, Tigranuhi Khalafyan, Head of the Department for Supervision of the Conduct of Public Servants of the Corruption Prevention Commission, confirmed that corruption is most noticeable in the sphere of state and community procurement, especially in the construction sector. In this regard, she emphasized that the 2023-2026 anti-corruption strategy envisages legislative changes and new mechanisms aimed at revising legal norms in the field of procurement.
"Of course, there will be no absolute ban on affiliated persons so that competition is not violated, but a more public environment will be ensured to minimize actions related to conflicts of interest," Khalafyan noted.
Touching upon the situation in ANIF, Khalafyan pointed out significant risks in government organizations and noted that the Corruption Prevention Commission has identified a number of gaps in the formation of governing bodies and the selection of management personnel.
The discussion was held within the framework of the Fair Judicial and Legal Reforms program, implemented by a consortium led by the Democracy Development Foundation, whose members include the Public Journalism Club, the Vanadzor Office of the Helsinki Citizens' Assembly, and the NGO "Protection of Rights Without Borders".
On May 23, at a government meeting, a decision was made to dissolve the Armenian National Interests Fund (ANIF). Until the liquidation process is completed, the management of the fund has been transferred to the State Property Management Committee. The reasons and grounds for the liquidation of the fund are not specified in the justifications for the resolution, and it is also unclear what will happen to the investments of ANIF and its subsidiaries. One of ANIF's largest projects was the creation of the national air carrier Fly Arna. At the beginning of the year, Prime Minister Nikol Pashinyan admitted the failure of this program: the airline suspended flights and the license was revoked. The state invested at least 4.8 billion drams (more than $12 million) in Fly Arna. In July, information was released that the Emirati airline Air Arabia was going to file a lawsuit against Armenia in arbitration court over the national air carrier, Fly Arna. Earlier, ArmInfo reported on the problems that had arisen at Fly Arna, caused, first of all, by the failure of the Armenian side to fulfill the conditions assumed when creating the airline. The issue was primarily about state compensation for expenses incurred in carrying out flights. The carrier stopped flights on January 10. Prior to this, one of the carrier's main shareholders, Air Arabia, recalled one of its two aircraft.
Another major investment by ANIF was the joint construction of a solar power plant in the village of Dashtadem in Talin with the Arab company Masdar. However, the construction did not begin, despite the planned deadlines.
ANIF also provided co-financing for the opening of the Hard Rock restaurant in the center of Yerevan, spending at least $500 thousand from state funds on it. Although the restaurant is functioning, the International Monetary Fund expressed doubts about the advisability of such investments, emphasizing that ANIF should not invest in the catering sector.
In 2022-2023, the Commission for the Prevention of Corruption and the State Control Service revealed cases of abuse and embezzlement in the fund. The CPC became interested in ANIF's activities as part of a case against the current mayor of Yerevan, Tigran Avinyan, regarding his holding multiple positions. The case was initiated in December 2022. Also in 2023, the International Monetary Fund found reporting and governance issues at ANIF, which led to the government restricting its activities.
