During comprehensive investigation conducted within the criminal case investigated in General Department of Investigation of Particularly Important Cases of the RA Investigative Committee on abuses committed during the activity of “South Caucasian Railway” CJSC actual data were obtained on apparent abusing official authorities by the official in charge of the RA Ministry of Transport, Communication and Information Technologies.

Thus, through preliminary investigation it was found out that by the RA Government’s decision N 83-Ա of February 7, 2008, on February 13, 2008 a concession agreement “On Passing the Armenian Railway System to “South Caucasian Railway” CJSC created by “Russian Railway” OJSC was signed between “South Caucasian Railway” CJSC and “Russian Railway” OJSC in the face of the RA Ministry of Transport, Communication and Information Technologies on using RA railway infrastructure for 30 years and making investments of 52.209 milliard AMD in the period fixed in the contract.

Pursuant to the Part 2 of the Article 14-1 of the mentioned contract during the validity of the contract the authorized body – the ministry was given the right to conduct examinations once a year to determine the process of fulfillment of contract terms and requirements of legislation informing about it the concessionaires in a written form at least 15 working days before.

For this purpose a contract “For Public Procurement of Audit Services for Government Needs” with the cost of 40.020.000 AMD was signed between the Ministry and Audit Company to conduct financial and technical audit in “South Caucasian Railway” CJSC. In the result of audit an audit report on the company’s activity of 2008-2013 was made and in February, 2015 was submitted to “South Caucasian Railway” CJSC and Ministry in which a number of financial abuses related to the company’s activity, including not implemented construction work of 428 million AMD in the investments made in railway infrastructures  were recorded.

Through preliminary investigation data were obtained on the allegation that the activity of railway department was coordinated by the Deputy Minister of the RA Transport and Communication. Without getting reasoned explanations and suggestions from “South Caucasian Railway” CJSC on abuses and their abolishment recorded by the audit conclusion, out of group interests, the latter did not submit a report to the RA law enforcement bodies on numerous violations of commitments envisaged by concession contract in the process of investments, including not implemented construction work of 428 million AMD, that is swindling in particularly large amount in the process of investments. As a result, 428 million AMD was swindled from investment funds, active measures were not taken to abolish the numerous financial abuses recorded in the investment process, to oblige “South Caucasian Railway” CJSC to implement commitments envisaged by the concession contract properly and on time.   

Considering that during preliminary investigation of the criminal case data were obtained on apparent abuses of official authorities by an official of the ministry – deputy minister, a new criminal case was initiated in the RA IC General Department of Investigation of Particularly Important Cases according to the Part 2 of the Article 308 of RA Criminal Code and was sent to the RA Special Investigatory Service according to investigatory subordination.

Preliminary investigation of the criminal case initiated on abuses committed during activity of “South Caucasian Railway” CJSC is ongoing in the proceeding of the RA IC General Department of Investigation of Particularly Important Cases.

Note; Everyone charged with alleged crime offence shall be presumed innocent until proved guilty according to law.