On a scorching summer day, July 31, 2023, Karine (name changed) strolled through downtown Yerevan in the company of her acquaintance, Gevorg (name changed). Upon reaching the Armeconombank branch on Aram Street, Gevorg asked Karine if she had her ID on her. Upon her affirmative reply, he proposed heading to the bank for a transaction that necessitated an identity card. In a moment of trust, Karine agreed.

As they approached the entrance of Armeconombank, Gevorg requested Karine to wait outside, taking her ID card with him as he entered the bank. Shortly after, he reemerged and instructed Karine to go inside, telling her that a man would be there to guide her on the next steps.

"I approached that man, the employee gave him a receipt, and he handed it to me to sign. It turned out to be a bank receipt. While signing, I noticed that I was transferring 2.5 million AMD (approximately 6200 USD) to the Civil Contract party," says Karine. After leaving the bank, worried about the transaction she just made, she sought reassurance from Gevorg about potential issues. In response, he advised her to simply claim ignorance if anyone ever questioned the transaction.

In reality, Karine unwillingly became one of the donors of the Civil Contract's election campaign on the eve of the 2023 Yerevan Council of Elders elections. Interestingly, she is not alone in finding herself in such a predicament.

Throughout this investigation, Infocom examined and identified nearly all individuals who contributed donations exceeding 1 million AMD. Our findings show that the transactions associated with the election campaign of the ruling Civil Contract party are suspicious, with some of the finances having an undisclosed origin.

Karine's ID card and signature were exploited to channel funds of unverified origin into the Civil Contract party's account. The timing of this bank transaction on July 31, 2023, aligns with the date of the party's fundraising event for the election campaign.

Interestingly, the Civil Contract party did not release a public statement prior to the fundraising event. A few days later, Armen Pambukhchyan, the head of the party's pre-election headquarters and now the first deputy mayor of Yerevan, posted on his Facebook page: "Through contributions from 987 donors, we gathered a total of 506,532,950 AMD.”

Nevertheless, the Civil Contract party did not disclose the identities of the "987 donors" throughout the pre-election period, the elections, or immediately afterward. Despite requests from Infocom and several other media outlets seeking a list of donors, the party consistently declined to provide such information. Approximately five months after the elections, on December 22, the party finally shared the names of the donors. Notably, this happened after the Freedom of Information Center of Armenia (FOICA), leveraging Infocom's application, submitted two additional requests of a similar nature to the Civil Contract. Receiving no response, on December 4, they initiated legal action against the party, demanding access to the list. A settlement agreement was subsequently reached between the party and FOICA on January 8, wherein the party committed to providing the information requested in the lawsuit.

In contradiction to the figures provided by Armen Pambukhchyan, the donor list forwarded to Infocom comprised contributions amounting to 509,085,950 drams (approximately 1,264,242 USD) from 996 individuals—nine more than the initially disclosed number.

—

"When I saw the sum, I couldn't get how I could contribute so much with my salary. Then I wondered, if I am not transferring the money now, where will they get this money from?" These were the questions swirling in Karine's mind as we spoke. Seeing her name listed as a donor, she became genuinely distressed, expressing her reluctance to be associated with any political party. Karine worries that this incident might cast a shadow on her reputation. She fears being perceived as naive by her relatives, realizing that placing trust in a friend roped her into a financial fraud and political deals.

Karine also crunched the numbers and concluded that with her current salary, she will be able to collect 2.5 million drams within 2.5 years. When asked about her emotions now that she understands she's been deceived, she responded, "I don't feel like a proud citizen. It's disheartening to see those involved in political matters who consistently deceive and prioritize their own gain."

She also recalled that after the banking operation, Gevorg made a call and stated, "2 from me, and I expect to get a reward for this."

The list of donors to the Civil Contract featured not just Karine's name but also Gevorg and his brother, both contributing 2.5 million AMD each.

Karine's situation is not unique. We encountered other individuals on the list of donors who were unaware of the transactions conducted in their name.

—

The legal maximum donation allowed per person is 2.5 million AMD (approximately 6200 USD). Notably, a significant 87% of the contributions to the Civil Contract party’s election campaign were amassed through transfers exceeding 1 million AMD. Within this category, around 70% of the donations were made by 140 individuals, each contributing the maximum allowable amount of 2.5 million AMD.

We examined and identified nearly all individuals who contributed donations exceeding 1 million AMD.

After analyzing donations data, we identified three main patterns:

1. Individuals contributing donations ranging from 1 to 2.5 million AMD reside in addresses very close to each other.
2. Individuals affiliated with large business companies have made substantial donations.
3. Prominent contributors include officials, municipal council candidates and current members, and people affiliated with them.

Individuals contributing donations ranging from 1 to 2.5 million AMD reside in addresses close to each other

We successfully identified 87% of individuals who contributed 1 million drams or more based on their addresses. Among those identified, 76% are residents of Yerevan. Additionally, significant donations were recorded from the Kotayk region (9.2%), Vayots Dzor region (4%), and Aragatsotn region (4%).

During the identification of donors through open data sources, we observed a pattern where some individuals reside in the same or neighboring buildings. This trend is particularly prominent in the administrative district of Nor Nork. For instance, there are four donors from three neighboring buildings on Vilnius Street, and eight donors from three neighboring buildings on Gay and Moldovakan streets, with five of them residing in the same building. 

All five individuals residing in the same building contributed 2.5 million AMD each. Notably, among them, Tigran Darbinyan stands out as the former deputy head of the Nor Nork administrative district of Yerevan and a candidate for the Council of Elders of the city. 

Infocom visited addresses in Nor Nork and other administrative districts of Yerevan, as well as nearby regions, to meet with individuals who made donations.

It's noteworthy that, upon observing the poor living conditions in most of the visited apartments, it was hard to imagine that the residents would have an additional sum of 2.5 million AMD to contribute to the party.

The initial reaction of the donors we met was, "Where did we get so much money?" Upon informing them that their names appeared on the list of donors of the Civil Contract party, they recalled some episodes and requested a moment to make a phone call. Following these calls, some donors confidently affirmed that they had indeed made the money transfer.

During a visit to one of the apartments, the parents of the donor met us, expressing surprise and stating that their son could not have transferred such a substantial amount of money.

Upon our request, the parents contacted their son, who reiterated that he had not made any donations. He added, "Let me ask you another question: if you had that kind of money, would you donate 2.5 million AMD to the Civil Contract party?"

In a telephone conversation, another resident of the same street, upon hearing the question, mentioned that he had made a contribution but couldn't recall the amount. When queried about the possibility of having donated 2.5 million AMD, he asked: “What is written on the list.” Upon learning the specified amount, he responded, "Please call me later. I make a lot of transactions, and I can't recall the details at the moment."

A resident from one of the addresses in the Nor Nork administrative district, whose name appeared on the list of donors, was currently out of the country. The mother firmly asserted that her son would never donate money to the Civil Contract party. When asked if it was plausible that he might have made a transfer without their knowledge, she responded negatively. The father also confirmed that their son did not make any transfers, suggesting that inquiries about how his son's name ended up on the list should be directed to the Civil Contract party.

At one of the addresses in the same administrative district, the donor's mother and wife met us. When they heard the question, they became worried and said that if such a donation had been made, they would have known. At our request, they called the donor, who in a telephone conversation with us said that he was a proxy of the Civil Contract party during the elections, but did not transfer money. He also asked us to wait to clarify something and call back. After a while, he called and said that he had transferred the money, and that we should not write anything about it. "If there is any issue, they will solve it," the donor noted.

"Do not take any action, leave it as it is. They told me not to do anything, everything is alright. They assured that they would handle all matters related to responsibilities or any other issues."

At a different address in the Nor Nork administrative district, the donor's wife met with us, expressing certainty that they had not made any monetary transfers. She stated, "I handle all our transactions on my behalf; currently, he does not have the right to conduct transactions. There have been no transfers from his name, and it's not possible as his accounts are under arrest, restricting any transactions," she noted.

"He is drowning in debts. He is not interested in politics and has no connections with the Civil Contract," she added.

One of the donors, who had transferred 2.5 million AMD, initially couldn't recall the subject of our conversation. Upon learning the amount of money involved, he expressed surprise but insisted it was his secret, refusing to disclose any details. Initially claiming he had made the transfer himself, he later mentioned there was some involvement but remained tight-lipped about the specifics.

One of the residents of Nor Nork, who also served as a proxy for the Civil Contract party in the Council of Elders elections, stated in an interview with Infocom that he had transferred 1 million AMD. However, the list provided to us indicated 2.5 million AMD under his name.

Another proxy of the party from the same administrative district had donated 2.5 million AMD. We attempted to contact him by phone. Upon hearing the question, he promised to call back after making some clarifications, but never called back.

The orange dots on the map below represent the addresses of individuals identified by us who donated 1-2.5 million AMD (excluding officials and individuals affiliated with companies). The administrative districts are colored based on the votes received by the Civil Contract party in the Council of Elders elections. Districts colored in dark are the ones where the Civil Contract party received a high number of votes compared to other districts.

Individuals affiliated with business companies have made substantial donations

Many individuals on the list of those who donated more than 1 million AMD included representatives, employees, shareholders, and directors of business companies.

Among the 140 donors who contributed 2.5 million AMD, at least 8 are employed by Yeremyan Projects, a well-known company in the restaurant sector in Armenia. 

We have an internal information that the donations were not made from the personal funds of the employees; rather, the company transferred the money using  their names. 

Ruben Sukiasyan, the Director of Marketing and Communications at Yeremyan Projects, answering Infocom’s question, said that the organization has no control over people's political views, and they did not give directions to anyone. He clarified, "If the question is whether the amount was transferred by the company or the head of the company, then definitely not; it has nothing to do with the company. If the question is whether some other people pass it on to these individuals [employees of the company-ed.] to donate - perhaps their personal friends, relatives, or others - it's just a coincidence in this regard," Sukiasyan noted. “In a company where 2,500 people work, 8, 10, or 5 of them can always unite around something and implement something over which we have neither control nor the desire to enter into this aspect of people's lives," Sukiasyan added.

Incidentally, the majority of individuals affiliated with Yeremyan Projects and united around donations to the Civil Contract hold senior positions within the company.

Ashkhen and Vergine Matevosyan, associated with various companies alongside businessman and owner of “Water World”, Khachik Khachatryan, each donated 2.5 million AMD to the Civil Contract party. Vergine Matevosyan and Khachik Khachatryan are shareholders of Villashin LLC. Artur Saroyan, the director of the same company, also contributed 2.5 million AMD to the Civil Contract party. Additionally, Albert Mirzoyan, the director of Villa Market LLC, affiliated with Villashin LLC, made a similar donation of 2.5 million AMD.

The maximum allowable donation was made by Vladimir Poghosyan, the Executive Director of Jermuk Group CJSC.

The Chief Specialist of Jermuk Municipality responsible for Economic Development, Stepanos Vardanyan, Chief Specialist of the Financial and Economic Department, Smbat Papoyan, Director of the CNPO "Sports and Cultural Center of the Jermuk Community," Gor Tadevosyan, and Acting Director of the CNPO "Communal Services of Jermuk" and Council of Elders member Artush Simonyan all participated in financing the campaign, each donating 2.5 million AMD.

The Head of the Jermuk community is Vahagn Arsenyan, the son of the former Executive Director of Jermuk Group CJSC and former MP from the Republican Party, Ashot Arsenyan. According to the State Register of Legal Entities, Vahagn Arsenyan is listed as the real beneficiary of CJSC Jermuk Group. 

The shareholders of Zover Construction LLC, involved in the construction of residential, public, and industrial buildings - Vardan Khachatryan, Artak Khachatryan, and Ara Avetisyan - donated 100,000 AMD each to support the Civil Contract party. Vahan Mkrtchyan, a shareholder of Milk  Product LLC, along with Artak and Vardan Khachatryan, contributed 50 thousand AMD. Hakob Hakobyan, the Director of Zover Staff LLC affiliated with Zover Construction, donated 2.5 million AMD. The director of Zover Construction LLC Armen Ghazaryan, made the same donation of 2.5 million AMD.

According to the State Register of Legal Entities, Armen Ghazaryan is also the director of another company engaged in the construction of residential, public, and industrial buildings - Magnolia Comfort 2 CJSC. Vahe Meliksetyan, a shareholder of the same company, also donated 2.5 million AMD. Meliksetyan is a former director of Wysiwyg LLC, whose former shareholder Hovhannes Mkrtchyan also made a donation of the same amount. The current shareholder of Wysiwyg, Lilit Mkrtchyan, is registered at the same address together with the shareholder of Zover Construction LLC, Ara Avetisyan. Armen Ghazaryan is also the former director of AGH Ghazaryans LLC. The current director of the company, Gevorg Gharibyan, transferred 2.5 million AMD to raise funds for the Civil Contract party. Gagik Ghazaryan, Director of GAH LLC, and Smbat Navoyan, a former shareholder and director of the same company, donated to the Civil Contract in the maximum allowable amount.

Minas Malkhasyan, a shareholder and director of the Malkhasyants Law Center, along with employee Grigor Malkhasyan, contributed 2.4 million AMD each to the Civil Contract party. Additionally, another staff member of the Center, Koryun Mkrtchyan, showed his support with a significant donation of 2.3 million AMD. Notably, Deputy Director of the Law Center Nazik Malkhasyan donated 100 thousand AMD. It's worth mentioning that Minas Malkhasyan, Nazik Malkhasyan, and Grigor Malkhasyan are the children of Judge Gurgen Malkhasyan. Interestingly, Judge Gurgen Malkhasyan was nominated as a candidate for a judge of the Court of Cassation approximately a month after the elections to the Council of Elders, although he was not ultimately elected.

Zorik Sargsyan, a former shareholder of Rapid Reaction Guard LLC, involved in private security activities, and Avetis Arakelyan, a current shareholder of the same company, each made contributions of 2.5 million AMD to the Civil Contract.

An equal sum was contributed by Karen Movsesyan, a shareholder of GMK Partners LLC specializing in accounting, and Karen Grigoryan, the director of the same company.

The shareholder and director of Stroy Master Mikhail LLC, involved in construction, Ivan Minasuyev, along with former shareholder Mikhail Minasuyev and their brother Nikolay Minasuyev, each contributed 2.5 million AMD to support the Civil Contract party. When questioned about his donation, Mikhail Minasuyev initially claimed not to remember, citing numerous donations he makes. He requested to see the list sent by the Civil Contract party and, without confirming or denying the donation, stated, "We did something, I don't remember."

Some companies affiliated with donors actively participated in public procurement. 

Prominent contributors include public officials and their affiliates 

The first Deputy Mayor of Yerevan, Armen Pambukhchyan, who also served as the head of the party's election headquarters during the pre-election period, held the position of Minister of Emergency Situations until June 30, 2023. Leading up to the elections to the Council of Elders, former employees of the Ministry of Emergency Situations, namely Vazgen Simonyan, Vahe Harutyunyan, Aram Semirjyan, Hovik Khachoyan, and Gegham Brsoyan, each made contributions of 2.5 million AMD to the Civil Contract party. Notably, Gegham Brsoyan was also a candidate for the Council of Elders from the Civil Contract party.

Armen Sargsyan, a former advisor to Armen Pambukhchyan until the dissolution of the Ministry of Emergency Situations, lately appointed deputy head of the Nor Nork administrative district, made a donation of 2.5 million AMD. According to the State Register of Legal Entities, Armen Sargsyan is a shareholder of Inter Trans LLC, a transportation company. The director of the same company, Karine Harutyunyan, also contributed another 2.5 million AMD. The donation in the maximum allowable amount was made by Harutyun Balyan, who is in close relations with Armen Pambukhchyan and Armen Sargsyan.

There are several officials on the list of those who donated more than 1 million AMD. Vigen Chilingaryan, Advisor to the Director of the "Hayantar" State Non-Profit Organization, made a contribution of 2.5 million AMD to the Civil Contract party.

The acting director of "Zinar" CJSC of the Ministry of Defense, Arshak Ordukhanyan, who previously served as an adviser to Suren Papikyan when he was Deputy Prime Minister, made a donation of 1.5 million AMD. Arshak Ordukhanyan was also a candidate for the Council of Elders.

The Head of Market Surveillance Inspection Body, Armen Kotolyan, who was also a candidate for the Council of Elders, donated 1 million AMD to the Civil Contract party.

Syuzanna Sayadyan, a member of the Council of Elders of the Artashat community, contributed 2.5 million AMD. Interestingly, according to the annual declaration of income for 2022, her income for that year amounted to 702,975 AMD. This income was received from the Civil Contract party as a salary.

By the way, the Honorary Consul of Spain in Armenia, Armine Adamyan, also made a donation of 2 million AMD to the election campaign of the Civil Contract party.

Employees of the Yerevan Municipality, including the Head of the Urban Development and Land Inspection Department, Yakov Asatryan, and the Director of the CNPO "Special Services for the Population," Hrachya Nazaryan, made a donation of 2.5 million AMD each to the Civil Contract party. Additionally, the head of the Trade and Services Department, Hovik Safaryan, contributed 100 thousand AMD to the party.

The Mayor of Yerevan Tigran Avinyan did not make donations; however, his father, Armen Avinyan, made a contribution of 2 million AMD. Tigran Galjyan, the brother of Armen Galjyan, the head of the "Civil Contract" faction of the Council of Elders of Yerevan, donated 2.3 million AMD.

Lusine Gevorgyan, a member of the Council of Elders of Yerevan, made a donation of 2.5 million AMD. Another member of the Council of Elders of Yerevan, Narek Manukyan, who is the Director of the National Center of Oncology, contributed 1 million AMD.

The heads of administrative districts made transfers ranging from 200,000 to 1.7 million AMD. The head of the Achapnyak administrative district, Kamsar Babinyan, the head of the Avan administrative district, Vahe Hakobyan, the head of the Arabkir administrative district, Aram Azatyan, and the head of the Kentron administrative district, Samvel Ghukasyan, each transferred 200 thousand AMD. The head of the Nork-Marash administrative district, Mikayel Ohanyan, contributed 400 thousand AMD, the head of the Nubarashen administrative district, Andranik Gasparyan, donated 550 thousand drams, the head of the Shengavit administrative district, Razmik Mkrtchyan, made a transfer of 300 thousand AMD, and the head of the Kanaker-Zeytun administrative district, Artak Hovakimyan, transferred 1.7 million AMD.

The office of the head of the Nor Nork administrative district stood out with generous transfers. The head of the Income accounting and collection division, Gevorg Baghdasaryan, and the head of the Urban development and land use division, Levon Shahnazaryan, both made donations of 2.5 million AMD each. When we sought clarification from Gevorg Baghdasaryan about his money transfer and its source, he initially stated he would call back later. Upon a follow-up call, he expressed frustration and requested not to be contacted regarding this issue again.

The head of the Trade, services and advertising division of the Nor Nork administrative district, Sargis Nazaryan, contributed 2.4 million AMD to the Civil Contract party. Nazaryan served as a proxy of the Civil Contract party during the Council of Elders elections. Additionally, the former head of the Urban development and land use division in the same administrative region, Gagik Abajyan, made a donation of 2.3 million AMD.

Among the donors contributing to the fundraising efforts, there are 88 candidates from the Civil Contract party for the Council of Elders. Their donations vary, ranging from 20,000 to 2.5 million AMD.

---

A comparison of the facts and a thorough analysis of the data reveal that the financing source for a portion of the Civil Contract party's election campaign is, at the very least, of unknown origin.

The research findings lead to the conclusion that an organized mechanism was employed to channel funds into financing the election campaign of the Civil Contract party. This mechanism involved associating sums with the names of individuals who were often unaware of the process.

As per the law on parties, campaign donations must be exclusively transferred through non-cash methods. This provision in the law aims to ensure transparency and traceability of the origin of the transferred donations.

Infocom inquired about how the Civil Contract party ensured cashless transfers of donations during the fundraising evening. In response, it was stated, "Armeconombank employees were involved in organizing the collection of donations ensuring the electronic transfer of the funds to the party's account. The accounts of the Civil Contract party are serviced by Armeconombank," the response mentioned.

Employees of Armeconombank were actively involved in facilitating transfers for the party's donors not only during the fundraising evening but also outside of it. It is noteworthy that one of the shareholders of Armeconombank is Khachatur Sukiasyan, a deputy of the parliamentary faction "Civil Contract." Sukiasyan and his brothers hold key supervisory positions within the bank.

—

On January 29, we reached out to Vahagn Aleksanyan, the Deputy Chairman of the Board of the Civil Contract party. We shared our encounters with individuals on the list of party donors who claimed not to have made any donations. Initially, Aleksanyan requested the names of these individuals to investigate further. When we declined to disclose the source, he suggested that perhaps we had not identified the correct individuals. 

In response to our observation that donations were made on behalf of individuals living in the same or nearby buildings, Vahagn Aleksanyan remarked, "I can't say. Perhaps the donations of several people were just registered in the name of one person by the bank's employees to save time. I don't rule that out either."

In response to a clarifying question about whether donations to the Civil Contract election campaign were collected only during the fundraising event on July 31, Aleksanyan replied, "No, because there were cases when party members of the territorial offices gathered their donations and sent them with one person. This also happened."

Upon further clarification about whether the fundraising donations were eventually made during the evening, Aleksanyan confirmed, "Yes." However, he added that there were some inaccuracies, and in some cases, there was a need to go to the bank the next day. When asked about the nature of the inaccuracies, Aleksanyan requested a written inquiry.

In the hope of getting more information, we agreed with Vahagn Aleksanyan that we would send our questions in writing form and await a response by January 30, 17:00. Unfortunately, we did not receive any response from the Civil Contract party by the appointed time.

The legality of the financing of the election campaign in the Council of Elders' elections can be determined by the state 8 months after the election

Political parties are required to submit their annual reports to the Corruption Prevention Commission (CPC) by May 31 of the next reporting year, according to the law on parties. The CPC oversees the financial activities of the party by comparing the submitted report with information obtained from other sources, including bank details, to verify the accuracy of the annual report. 

Earlier, Infocom wrote about the supervisory function of the Corruption Prevention Commission (CPC) and the Central Electoral Commission (CEC) asking whether the refusal to publish the list of donors during the pre-election period affects the transparency of the electoral process. 

At that time, the chairman of the Central Election Commission, former MP of the "Civil Contract" Vahagn Hovakimyan, referring to this concern, said: “You desire that the act of publication, the disclosure of information related to any political party, influences the election results of that party. You treat political parties as potential criminals.”

Hovakimyan also emphasized in our interview that if the journalists' objective is to guarantee a transparent process, the timing of studying the list of donors, whether during the elections or approximately 8 months post their conclusion, should not significantly impact their pursuit of transparency.

Approximately four months after the conclusion of the Council of Elders elections, it has come to light that the Civil Contract party’s election campaign was financed from obscure origins through dubious transactions.

Author - Lucy Manvelyan

Hayarpi Baghdasaryan, Julietta Hovhannisyan, and Roman Abovyan contributed to the investigation

Editors - Ani Hovhannisyan, Sevak Mamyan