Former Armenian Economy Minister Vahan Kerobian was put under house arrest on February 16, one day after he was indicted in an ongoing corruption investigation.
Kerobian denied accusations of abuse of power and said he will appeal against the court's decision to put him under house arrest. He told journalists in the courtroom that he was not allowed to comment on details of the high-profile criminal case.
The accusations stem from a procurement tender organized by the Economy Ministry last year. Another Armenian court in June invalidated the ministry's decision to declare a major software company, Synergy International Systems, the winner of the tender. The decision followed a lawsuit filed by another bidder that had set a much lower price for its services.
Armenia's Investigative Committee said late on February 15 that Kerobian and four other ministry officials -- all of whom were charged with abuse of power -- rigged the tender in a bid to grant a $1 million procurement contract to Synergy by illegally disqualifying Harmonia, another tech company, and ensure Synergy's victory in the tender "at any cost."
The statement added that the officials planned on granting the procurement contract to Synergy even after the ministry reluctantly declared Harmonia the winner of the tender in August. It did not accuse them of bribery or give any reasons for the preferential treatment allegedly enjoyed by Synergy.
Kerobian openly defended his subordinates before resigning on February 14. During a cabinet meeting chaired by Prime Minister Nikol Pashinian last week, he complained 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 said that he disagreed with Pashinian and had wanted to step down on numerous occasions during his more-than-three-year tenure. He did not elaborate.
Kerobian on February 16 confirmed media reports that the chief of Pashinian's staff, Arayik Harutiunian, told him to resign shortly before he posted his resignation statement on Facebook. He claimed that Harutiunian gave no reason for the recommendation.
"During these 3-plus years, I have worked with an unrelenting devotion, filled with love for every citizen of Armenia," he said on Facebook. "I have been decisive, honest and dedicated to the homeland."
The ex-minister also said that he did not think the charges brought against him were politically motivated. Some Armenian commentators have suggested that Pashinian ordered this and another corruption probe involving another ministry official in hopes of boosting his falling approval ratings.
Kerobian, 47, was appointed economy minister in November 2020 in the wake of Armenia's disastrous war with Azerbaijan.
He was until then the chief executive of a food-delivery company that he set up with his wife and a friend. He also previously managed an Armenian supermarket chain that went bankrupt before being purchased and rebranded by other investors.