A Rising Tide of Conflicts of Interest in Armenia's Governance

02.09.2024
By Tigran Grigoryan and Karena Avedissian
The state-run Corruption Prevention Commission has fined the heads of Hrazdan and Artashat towns 300,000 drams (approximately $776) each for failing to submit required written statements about conflicts of interest. These community leaders signed contracts with relatives and politically connected individuals without notifying the Commission, as mandated by law.
An earlier investigation by the media organization Hetq revealed that, over the past few years, the Hrazdan municipality has repeatedly awarded contracts to companies owned by relatives of Mayor Sevak Mikaelyan, including his brother and in-laws. These contracts, involving significant sums for services like supplying gas and repairing roads, have sparked concerns about potential conflicts of interest. Despite these family connections, municipal officials deny any wrongdoing, claiming that the tender processes were transparent and compliant with the law.
Meanwhile, in Artashat, Narek Baghdasaryan, a city council member from the Civil Contract party, has been awarded road construction subsidy projects totaling approximately 723 million drams ($1.87 million) over the past two years.
Party and personal connections also appear to have influenced decisions in the administration for the Ararat region, where Artashat is located. In 2023, Ararat regional administration staff signed a contract worth approximately 109 million drams ($282,000) with Garant Capital Construction LLC, a company owned by Baghdasaryan, for construction work in Artashat.
In another similar case, CivilNet reported last month that Sokrat Pambukchyan, the 71-year-old retired father of Yerevan Deputy Mayor Armen Pambukchyan, acquired 40 hectares of land in Shenik village in Armavir province. The elder Pambukchyan also started a new company, Sungarden, to set up an orchard on this plot, marking his first venture into business as either a director or shareholder. Pambukchyan secured a loan of 1.5 billion drams ($3.88 million) to develop his orchard and attributes his success to his business plan.
Another Hetq investigation last month revealed that a Los Angeles property owned by the sister of Environment Minister Hakob Simidyan also serves as the registered address for the U.S. branches of the My Step Foundation, a charity headed by the prime minister's wife, and First Channel America, a subsidiary of Armenian Public Television.
These developments all highlight a concerning trend in Armenia: Ruling party officials disregarding apparent conflicts of interest.
Such behavior undermines the principles of transparency and accountability crucial for Armenia's democratic growth. It erodes public trust in institutions, hampering efforts to build a fair and just society. When political power is misused for personal gain, it weakens the rule of law and fosters an environment where governance is driven by favoritism rather than merit.
Public TV Promotes Hate Speech
The Media Ethics Observatory, an independent watchdog, issued a decision last month finding that Armenian Public Television violated journalistic ethics in its coverage of anti-government rallies in May and June. The broadcasts falsely implied that participants were paid to attend and misrepresented Nagorno-Karabakh Armenians’ distinctive dialect, leading to unfair generalizations against the Karabakh community.
The Observatory criticized Public Television for failing to critically assess the official information it received and for fostering an atmosphere of hostility toward Karabakh Armenians. The finding underscores the need for responsible journalism, especially in a context as sensitive as Armenia's, where media plays a pivotal role in shaping public perceptions and social cohesion.
When a state-affiliated media company spreads false narratives about a vulnerable refugee population, it can perpetuate harmful stereotypes and exacerbate social divisions. In Armenia’s democratic society, Public Television, which is supposed to serve the public interest, should serve as a platform for accurate information and diverse perspectives, rather than as a tool for spreading disinformation and fostering hostility.
Democracy Watch is a joint initiative by CivilNet and the Regional Center for Democracy and Security, a Yerevan-based think tank.
This material has been funded by UK International Development from the UK government; however, the views expressed do not necessarily reflect the UK government’s official policies.