The court hearing in the case of Aghvan Hovsepyan, former Chairman of the Investigative Committee, former Deputy of the Supreme Council, and former Prosecutor General, continued yesterday, September 3, at the Anti-Corruption Criminal Court. The presiding judge is Tigran Davtyan.

According to the indictment, Aghvan Hovsepyan, while serving as the Prosecutor General of the Republic of Armenia from March 18, 2004, to September 13, 2013, and as the Chairman of the RA Investigative Committee from July 18, 2014, to June 11, 2018, being a high-ranking official endowed with the functions of a government representative, contrary to the prohibition on engaging in entrepreneurial activities for persons holding office, founded organizations engaged in entrepreneurial activities with his close associate Arshavir Sargsyan, a resident of Yerevan, between 2007-2015 with a single intent. He also personally participated and through trusted persons – his sons – in the management of organizations engaged in entrepreneurial activities, which was associated with granting privileges and advantages to these organizations and patronizing them in other ways. He then legalized the property obtained through criminal means as a result of illegal participation in entrepreneurial activities in particularly large amounts.

According to Iravaban.net, witness Arshavir Sargsyan was interrogated during this court session.

He stated that he had friendly relations with the defendant Aghvan Hovsepyan. Regarding this case, he noted that he had complained against the injustice of state bodies: he had built a hydroelectric power plant in Meghri city, which was illegally transferred to another organization.

“The HPP, which was 60% ready, was illegally transferred to their firm. An examination was conducted related to this, everything was clarified. I complained about this episode, and everything related to this episode is frozen, standing still, there’s no news, no questions and answers,” said the witness.

Public prosecutor Koryun Serobyan asked when he met Aghvan Hovsepyan, under what circumstances, where, and through whom. The witness said they met in 2001-2002 in Moscow, where he was engaged in business, and in Armenia, their warm relations continued until the spring of 2015.

• For what purpose did you return to Armenia, and did you engage in business here or not?
• I returned to Armenia in 2001-2002. In Moscow, I was involved in various types of businesses, there were problems, I returned to Armenia, we decided to live here, I have 3 daughters, 1 son. We were already friends with Aghvan Hovsepyan, we had met, he said stay here, don’t go, you’re a hardworking guy, wherever you are, you’ll work, we found it more convenient to stay and work in Armenia. I engaged in business in Armenia in 2004-2005, until we reached this day.

According to him, he mainly dealt with the construction of hydroelectric power plants, the first HPP was created in Yeghegnadzor (Surb Aghbyur), during that time he went to China, cooperated with relevant organizations to acquire necessary items.

At that time, he agreed with Aghvan Hovsepyan to continue working together.

• Tell me, did you reach specific agreements with Aghvan Hovsepyan to develop business activities, and if so, what were these businesses?
• I had no other business friend, I only had Mr. Hovsepyan, I served honestly as a friend both in personal matters and in everything, I worked on business-related matters, I made 1 into 2, 2 into 3, I came and told him, he said you’re an honest man, there’s no problem. The time came, it turned out that I had been unfair.
• When you reached an agreement with Aghvan Hovsepyan, did he express willingness to help you in this way?
• If there wasn’t that willingness, the work wouldn’t have happened.
• Was there any other logic to developing activities with him?
• Of course.
• What was it?
• First of all, he had a very good, large circle, the issues that were inaccessible to me, he solved with one phone call.
• What position did he hold at that time?
• At that time, he was the Prosecutor General of the republic, then he worked as an investigator, then became Prosecutor General again.

The witness stated that he had proposed creating a technical inspection station, informed Aghvan Hovsepyan about it, land plots were purchased in advance, after which he met with Ashot Zalinyan and had a discussion about the area located in Davtashen.

Here’s the testimony given in court by Ashot Zalinyan and his son.

“We went to the technical inspection station, agreed with Ashot on our percentage rates, there was a moment when they wanted to upset me regarding the percentage rate, I didn’t allow it, because I was doing the main work, I was putting in the money. We made Aghvan Hovsepyan’s share in Narek’s name, Zalinyan in his son’s name, I in my name. I put in the money, 200 thousand dollars, we started working, over a year and a half they gradually returned the money, then we started receiving income,” said Arshavir Sargsyan.

To the prosecutor’s question about who the third person was, the witness said he doesn’t remember, it was the owner of the institution, the area belonged to him.

Throughout the interrogation, the witness emphasized that he and Aghvan Hovsepyan were “like members of the same family”: “Why am I so upset today? Because it turned out that this fair, good man, who was friends with the children, and has gone through a lot of roads, took on many problems that no one knew about, didn’t suffer, and suddenly became a cheater, although I haven’t complained about anything, I’m saying what’s there.”

To another question from the prosecutor about whether Aghvan Hovsepyan intervened in the process of obtaining a license for the technical inspection station, the witness replied that if he hadn’t intervened, no one would have received a license.

Regarding the Zangezur Copper-Molybdenum Combine, he stated that it was one of his regular ideas, he told Aghvan Hovsepyan that tires could be brought from there, the latter spoke with the director, there were meetings, an agreement was reached: “He said, go, if you can do this business, we have our representation there, if you can bring at a better price, and if they give it to you at all, please, bring it.”

The witness stated that he brought these tires from Belarus and was engaged in this activity for a long time.

Later, the company was changed to the name of Aghvan Hovsepyan’s son, the issue was conditioned by the fact that during this time, PAP leader Gagik Tsarukyan also opened a company with Belarus, the Belarusian organization’s share was 51%, and Tsarukyan’s organization 45%, they were bringing all Belarusian goods and selling them in the Charbakh store: “A question arose that they should also bring the ‘vershina’, I realized that we were losing this business, I told Mr. Hovsepyan there’s such a problem, he said I’ll talk, probably talked, then said that we need to change the organization to Misak’s name, to say it’s his son’s organization. I realized that something wasn’t right, until then there had never been a ‘mine and yours’.”

He noted that he and Misak Hovsepyan went to Gagik Tsarukyan once, asked him to allow them to continue their business activities, he received them very badly, said this is business, now they are working.

According to him, after that they worked together for 1 year, then it was decided to open a new organization, change the founders.

Witness Arshavir Sargsyan also stated that in recent years, Misak Hovsepyan has also worked with them, noting that he was putting the workload on him.

Regarding the activities of Vardahovit and Vayots Dzor HPPs, the witness stated that after the construction of the first HPP, he told Aghvan Hovsepyan: “Mr. Hovsepyan, big brother, tell me in whose name among the family members should I register 50%, he said Narek’s, I went and registered it in Narek’s name, because we agreed that it belongs to 2 families.”

According to him, the head of Vardahovit community at that time wanted to have a share, and they divided it into 3 parts between himself, the community head Samvel, and Misak, also noting that Aghvan Hovsepyan did not participate in the financial investments.

To the question of whether Aghvan Hovsepyan made financial investments for the HPPs or not, the witness replied that he only gave permission to take a loan, he did not participate in the investments.

The prosecutor asked until what year the joint business activities related to the HPPs lasted, the witness said that in the spring of 2015, unpleasantness had already begun between him and Aghvan Hovsepyan.

Regarding the Byurakan villa belonging to Aghvan Hovsepyan’s family, he noted that they built it together, he brought the furniture and other necessary items from China: “I was both a builder and a worker, both a chef and a bodyguard, what should I do for a great friend, a close person, I wasn’t going to sit idle.”

They gave money to many people for the construction of the villa, they built a concrete lake and a tunnel in the yard of the house, which he did not participate in, and large sums were invested for the general construction.

The witness stated that during the business activities, Aghvan Hovsepyan said that he had cheated him, and it was about 10 million dollars or more. To the question of whether the sons also made such accusations, he said they cannot say such things, the conversation was only with Aghvan Hovsepyan.

“It doesn’t happen that everything remains with you, I suffered, I struggled, right? He said, ‘Transfer everything to me, then I’ll decide if you deserve anything or not,’ I said goodbye. In the end, we came to a common denominator, we agreed, we made a mutual agreement contract, only good and bad memories remained,” he said.

Regarding the audits, he stated that he suggested bringing an independent organization to check, Aghvan Hovsepyan said that he is a recognized person, it’s not allowed, they will know that he has such problems.

Arshavir Sargsyan noted that he and Aghvan Hovsepyan met in Moscow, in the presence of a third person they agreed that he would give all the businesses to him, and the latter should return the loan amount: “I called my wife, told her to go and sign whatever is there, give the property to their family. Everyone signed, my wife was left, she said she would come and sign on Monday, on Sunday I call and say Mr. Hovsepyan, I fulfilled my promise, it remains for you to return that amount, he said we didn’t agree on anything. I said thank you, turned off the phone and threw it away, and my wife didn’t go, didn’t sign anymore, and all that became nothing.”

According to him, 2 years later they came to an agreement again, they gave some properties to Aghvan Hovsepyan’s family, some remained with them.

The session was adjourned. Arshavir Sargsyan’s interrogation will continue at the next court session.

The next session will take place on September 30.

Details in the videos. 

Mariam Shahnazaryan