Kerobian denied accusations of abuse of power and stated that he intends to appeal against the court’s decision to place him under house arrest.
During his appearance in court, Kerobian informed journalists that he was unable to provide further comments on the specifics of the high-profile criminal case.
The accusations against former Armenian Economy Minister Vahan Kerobian stem from a procurement tender organized by the Economy Ministry last year. In June, another Armenian court invalidated the ministry’s decision to declare Synergy International Systems, a major software company, as the winner of the tender. This decision came after a lawsuit was filed by another bidder that had offered a significantly lower price for its services.
Armenia’s Investigative Committee announced late on February 15 that Vahan Kerobian and four other ministry officials, all charged with abuse of power, were accused of rigging the tender. Their alleged aim was to award a $1 million procurement contract to Synergy by illegally disqualifying Harmonia, another tech company, and ensuring Synergy’s victory in the tender “at any cost.”
The statement further elaborated that the officials intended to award the procurement contract to Synergy, even after the ministry reluctantly declared Harmonia the winner of the tender in August. However, it did not accuse them of bribery or provide any reasons for the preferential treatment allegedly received by Synergy.
Kerobian openly defended his subordinates before resigning on February 14. At a cabinet meeting chaired by Prime Minister Nikol Pashinian last week, he voiced concerns that the criminal proceedings had “paralyzed the work of the entire state system”.
Kerobian was formally relieved of his duties a few hours after announcing his resignation. In a statement, he mentioned that he disagreed with Pashinian and had contemplated stepping down on multiple occasions during his more-than-three-year tenure, but he did not provide further details.
On February 16, Kerobian confirmed media reports that Arayik Harutiunian, the chief of Pashinian’s staff, had advised him to resign shortly before he posted his resignation statement on Facebook. Kerobian stated that Harutiunian did not provide a reason for the recommendation.
He stated on Facebook, “During these 3-plus years, I have worked with unrelenting devotion, filled with love for every citizen of Armenia. I have been decisive, honest, and dedicated to the homeland.”
The former minister also expressed his belief that the charges brought against him were not politically motivated. Some Armenian commentators have speculated that Pashinian initiated this and another corruption investigation involving another ministry official in an attempt to bolster his declining approval ratings.
Kerobian, aged 47, was appointed as economy minister in November 2020 following Armenia’s devastating war with Azerbaijan. Prior to his government appointment, he served as the chief executive of a food-delivery company that he co-founded with his wife and a friend. Additionally, he previously managed an Armenian supermarket chain that faced bankruptcy before being acquired and rebranded by other investors.