Section 4. Corruption and Lack of Transparency in Government
The law provides criminal penalties for conviction of official corruption. After the May 2018 “Velvet Revolution,” the government opened investigations that revealed systemic corruption encompassing most areas of public and private life. The government launched numerous criminal cases against alleged corruption by former government officials and their relatives, parliamentarians, and in a few instances, by members of the judiciary and their relatives, with cases ranging from a few thousand to millions of U.S. dollars. Many of those cases continued as of year’s end, and additional cases were reported regularly. The government also launched such cases against a few current government officials.
Corruption: The country has a legacy of systemic corruption in many areas, including construction, mining, public administration, the parliament, the judiciary, procurement practices, and provision of grants by the state. There were allegations of embezzlement of state funds, involvement of government officials in questionable business activities, and tax and customs privileges for government-linked companies. In 2018 the government made combatting corruption one of its top priorities and continued to take measures to eliminate it during the year. Although top officials announced the “eradication of corruption” in the country, local observers noted that anticorruption measures needed further institutionalization. Criminal corruption cases were uncovered in the tax and customs services, the ministries of education and health care, and the judiciary.
According to the Prosecutor General’s Office, in the 13 months ending in June, enforcement bodies and tax services uncovered violations in the amount of 110.5 billion drams (almost $230 million), constituting damages to the state, embezzlement, abuse of official duty, and bribes. Of this amount, 30.1 billon drams ($63 million) was reportedly paid to the state budget; NGOs raised concerns regarding insufficient transparency in this process.
During the year former officials made public announcements of their intent to return assets to the state, allegedly to avoid prosecution. The process by which the government accepted or negotiated such arrangements were unclear.
In December 2018 the Prosecutor General’s Office launched a criminal case against former minister of nature protection and then member of parliament Aram Harutyunyan, for bribery in especially large sums. According to the Special Investigative Service, Harutyunyan misused his position as chair of the interagency tender commission on the establishment of mining rights over the parcels of lands containing minerals of strategic importance, receiving a bribe of $14 million from a business owner in exchange for 10 special licenses for mineralogy studies in mines, further extension of those studies, and, subsequently, permission to exploit the mines. As of late November, Harutyunyan was in hiding from the prosecution.
Financial Disclosure: The law requires high-ranking public officials and their families to file annual asset declarations, which were partially available to the public on the internet. The law grants the Ethics Commission for High-Ranking Officials the powers and tools to partially verify the content of the declarations, including access to relevant databases and the mandate to impose administrative sanctions or refer a case to law enforcement authorities when elements of criminal offenses were identified. After the May 2018 change in government, the Ethics Commission imposed penalties on officials for filing incomplete or late declarations.
By law full verification of the data as well as other functions aimed at preventing corruption is carried out by the Commission on the Prevention of Corruption. The commission, an autonomous collegial body accountable to the parliament, is authorized to have five members who are appointed for a six-year term. It replaces the Ethics Commission for High-Ranking Officials and is broadly empowered to promote official integrity, support development of anticorruption policy, and conduct anticorruption awareness and training. On November 19, the National Assembly elected the five members of the Commission on the Prevention of Corruption by secret ballot; one member was nominated by the government, one by each of the three parliamentary factions, and one by the Supreme Judicial Council. A civil society leader nominated by an opposition party became the commission chairperson.
Under a law criminalizing illicit enrichment, many public officials, including judges and members of parliament and their spouses, disclosed large sums of unexplained income and assets, including large personal gifts and proceeds from providing loans. After the May 2018 change in government, authorities initiated several investigations of discrepancies or unexplained wealth identified in the declarations. On October 3, the government adopted an anticorruption strategy that, among other actions, envisages the creation of a separate special law enforcement body, to be called the Anti-Corruption Committee, by 2021.