M.M., holding the position of the First Deputy Chief of Staff of the President of the Republic of Armenia from 2008 to 2012, and from 2013 to 2018, being the Extraordinary and Plenipotentiary Ambassador of the Republic of Armenia to the Holy See, contrary to the legal prohibition to carry out business activities, until 2016, both personally and through his close associates A.P. and L.A., participated in the management of an organization carrying out business activities, legalizing particularly large amounts of property obtained through criminal means as a result of the above-mentioned illegal activities.
The Prosecutor General’s Office reported.
By the decision of 24 August, 2023, the Supervising Prosecutor initiated a public criminal prosecution against M.M. under Article 190, Part 3, Clause 1 of the Criminal Code adopted on 18.04.2003 (Legalization of property of particularly large amounts obtained through indirect means (money laundering) .
As a result of the criminal proceedings, it was found that according to the decision 435-N of the Ministry of Energy on 21 January, the “Dzora HPP” CJSC was established with the investment of the state-owned property of the “Dzora HPP”, which was separated from the property of the “Hayenerganorogum” CJSC. The authority to manage the company’s shares has been assigned to the Ministry of Defense.
On 16 December, 2010, the Ministry of Defense drafted a secret government decision approving the signing of a large transaction for the sale of the above-mentioned property. The draft proposed to allow the Ministry of Defense to approve the conclusion of a large transaction, namely, to sell the property for 3 billion 600 million drams to the “Dzoraget Hydro” LLC, actually managed by M.M. “Dzoraget Hydro” LLC was founded by M.M. affiliates A.P. and L.A., through the trading company “MGDC Inc” registered in the British Virgin Islands and “Wode Group” LLC on 27, October 2010.
According to the contract of sale of property signed on 20 December, 2010, the property of “Dzora HPP” CJSC company with a market value of 4 billion 646 million 400 thousand drams was sold to “Dzoraget Hydro” LLC managed by M.M. for 3 billion 600 million drams.
Further, in order to set privileges for “Dzoraget Hydro” LLC, the Government set the maximum capacity up to 30 MW instead of the 10 MW power set for small hydroelectric power plants by the relevant decision in 2011. As a result, the only large hydropower station, the 26.4 MW hydropower plant of “Dzoraget Hydro” LLC was included in the list of small hydropower plants. Based on the Government’s decision, the Public Services Regulatory Commission changed the methodology for calculating electricity sales tariffs and set double tariffs for the sale of electricity produced and delivered from the hydroelectric power plant of “Dzoraget Hydro” LLV during 2012-2016.
M.M. concealed the fact that he was the beneficiary owner of 30 percent of the company’s shares, as a result of which he received 1 billion 113 million 698 thousand 628 drams in dividends during 2011-2016.
In order to distort the criminal origin of the money actually received from the funds received as a result of illegal participation in business activities in the above-mentioned period, especially the large amount of 333 million 861 thousand 167 drams, with the common intention of legalizing it, Mikayel Minasyan mixed the above amounts with his other incomes, then gave them a legal form through various civil law operations, that is, through various banking operations.
Note: A person that is suspected or accused of an alleged crime is considered innocent until his/her guilt is proved by a court judgment that has come into legal effect pursuant to the procedure determined by RA Criminal Procedure Code.
