Resignation of Prime Minister not expected

YEREVAN, June 24. / ARKA /. Galust Sahakian, a senior member of the ruling Republican Party of Armenia, has denied today rumors that Prime Minister Tigran Sargsyan may resign because of being involved in a scandal claiming that he was one of three Armenians who set up an offshore company in Cyprus  and because of the latest report of the parliament Audit Chamber alleging widespread corruption in the administration of public procurements.

According to reports in the Armenian media, the law-enforcement authorities have brought criminal charges against a businessman, Ashot Sukiasian who misappropriated a $10 million loan which he borrowed from an Armenian commercial bank and transferred it to a bank account of an offshore company he set up in Cyprus. 

According to the reports, the company is co-owned by Sukiasian, Prime Minister Tigran Sargsyan and Archbishop Navasard Kchoyan, head of the Ararat diocese of the Armenian Apostolic Church. Both Sargsyan and Kchoyan strongly denied having any shares in the company, saying  it was registered in their names  without their knowledge. Earlier, Tigran Sargsyan had asked the Office of the Prosecutor-General to investigate the media claims. 

Speaking to reporters, Galust Sahakian said he did not expect a change of prime minister. In comments on the Audit Chamber’s report and the likelihood of prosecuting government officials for misuse of government funds, Sahakian said the Audit Chamber’s report  is not the final authority, and the published facts are subject to investigation and debate. He said the prime minister told the relevant bodies to investigate all cases of misappropriation and take action.

On June 13 the parliamentary oversight body presented its annual report to parliament alleging widespread corruption in the administration of state procurements. Audit Chamber head, Ishkahn Zakarian, said it resulted in a massive loss of public funds, worth millions of US dollars.

According to Galust Sahakian,  the parliament and the government are interested that all misappropriation cases if they are confirmed become a subject of action by law-enforcement bodies. -0-