“Corruption Remains a Serious Challenge in Armenia”: Statement

The Anti-Corruption Coalition of Civil Society Organizations of Armenia (hereinafter referred to as the Coalition), represented by its Governing Board, acknowledges the efforts of the RA Government in the fight against corruption.

In particular, we welcome the process of developing the RA Anti-Corruption Strategy for 2023-2026 and its implementation action plan. We are pleased to note that the RA Prime Minister accepted the proposal of the President of the Armenian Lawyers’ Association, who is a member of the Anti-Corruption Policy Council and coordinates the Coalition’s Secretariat, to establish a working group. This group, established by order of the RA Minister of Justice and comprising representatives from state bodies, the Coalition, ALA, and other stakeholders, developed the anti-corruption strategy through a participatory approach.

The Coalition particularly emphasizes the effective cooperation between RA competent state bodies and civil society organizations (CSOs) within the frameworks of GRECO and OECD. We are pleased to note the positive assessments of Armenia by specialized international structures and the country’s progress, as well as the continued efforts of the EU and USAID in implementing anti-corruption reforms in Armenia.

The active participation of Coalition member organizations in international platforms deserves special attention. In particular, during the OECD Istanbul Anti-Corruption Action Plan Steering Group meeting in Paris in September 2024, the ALA representative, who is the Coalition’s anti-corruption expert, raised existing methodological and systemic issues, emphasizing that under the current methodology, Azerbaijan had unjustifiably received high scores while Armenia’s scores were low, which does not reflect the objective picture of the anti-corruption situation in these countries. These substantiated observations have been taken into account by the Istanbul Anti-Corruption Action Plan, and a methodology revision process is currently underway.

Within the framework of international anti-corruption cooperation, the Coalition emphasizes the importance of strengthening Armenia’s position in the International Association of Anti-Corruption Authorities (IAACA). In particular, ensuring the inclusion of a representative from Armenia’s anti-corruption institutional system in the Association’s leadership is considered a priority. Currently, this position is held by Azerbaijan’s representative, which does not correspond to Azerbaijan’s anti-corruption performance indicators. Meanwhile, Armenia, which is implementing an active anti-corruption reform policy, has no representation in the Association’s governing bodies.

The Coalition highly values the RA Government’s activities in various areas of anti-corruption efforts, including the application of the illicit asset forfeiture mechanism. Particularly noteworthy are the reforms being implemented in the field of corruption prevention, specifically the improvement of the system for restricting and registering gifts to public officials. The Coalition reaffirms its readiness to continue providing expert support in further improving this institution.

Special attention should be paid to efforts aimed at preventing corruption in the private sector.

The Government’s consistent work on developing the whistleblowing institution and improving its public perception deserves special emphasis. Particularly important is the Prime Minister’s acceptance of the proposal from the Anti-Corruption Policy Council member and Coalition Secretariat coordinator regarding the implementation of nationwide comprehensive measures to change public perceptions of the whistleblowing system and improve the legislative framework. We are pleased to note the effective cooperation established between the RA Ministry of Justice, international organizations, and the Coalition member ALA. Within this framework, more than 600 public servants, students, pupils, teachers, and private sector representatives have undergone training on the whistleblowing system, including digital security skills development.

At the same time, the Coalition also has well-founded concerns about the recent situation in Armenia. Particularly concerning are the resignation processes of the Chairman of the Anti-Corruption Committee, one of the anti-corruption institutional system bodies, as well as the Chairman of the Supreme Judicial Council.

The principle of separation and balance of powers enshrined in the RA Constitution stipulates that state power shall be exercised exclusively in accordance with the Constitution and laws, based on the separation and balance of legislative, executive, and judicial powers. Armenian legislation provides for appropriate legal tools through which representatives of different branches of government can exercise mutual oversight exclusively through the application of legal mechanisms.

At the same time, the delay in improving the illicit asset forfeiture mechanism is concerning. It should be noted that on December 19, 2022, the Venice Commission, responding to the appeal of the RA Constitutional Court, presented an advisory opinion on the constitutionality of the RA Law “On Forfeiture of Illegal Assets.” However, despite two years having passed, the RA Constitutional Court has inexplicably suspended the proceedings and has not yet made a decision on this matter. It is noteworthy that under these legal uncertainties, RA anti-corruption courts continue to hear similar cases and make decisions without the Constitutional Court’s final resolution on the law’s constitutionality. This situation could lead to serious legal consequences and uncertainties.

Also highly concerning are possible manifestations of political influence during court proceedings in certain cases. For example, noteworthy is the decision of the Anti-Corruption Court of Appeal in the case of former Chairman of the Urban Development Committee Vahagn Vermishyan, where, while overturning the first instance court’s verdict and finding the person innocent on several counts, the final imprisonment term remained the same after the combination of punishments. This circumstance raises serious questions about the independence and impartiality of the judicial process.

Thus, the Coalition believes that systemic corruption in Armenia has not yet been overcome, which may be due to the following circumstances:

1. The anti-corruption institutional system bodies have not yet achieved full independence, including institutional and operational independence.
2. The leadership positions of these bodies have mainly been filled not through open and transparent competitions based on professional criteria, but under the guise of competitions as a result of political arrangements. Moreover, in the competition councils for selecting anti-corruption body leaders, where representatives of independent specialized CSOs should be involved by law, interconnected NGOs are included in violation of the law. The most recent such case was the formation of the competition council for selecting the Chairman of the Anti-Corruption Committee, regarding the selection of representatives from two NGOs.
3. According to our observations, the staffing of anti-corruption bodies with professional and honest personnel is also not being carried out entirely effectively and fairly.
4. There is a lack of objective mechanisms for evaluating the effectiveness of support provided to CSOs in the anti-corruption field by some international development partners.

It is noteworthy that the fact of ineffective anti-corruption efforts was publicly confirmed by the RA Prime Minister during the Government session on November 23, 2024. It is also noteworthy that according to Transparency International data, during 2021-2023, Armenia’s Corruption Perception Index (CPI) score fluctuated between 46-49 points, which is 4-1 points below the 50-point threshold that would exclude the presence of systemic corruption. According to international anti-corruption expert community assessments, a score below 50 points indicates the presence of systemic corruption in the given country. This fact once again confirms that systemic corruption in Armenia has not yet been overcome.

The Coalition draws attention to the following problematic trends:

1. It is concerning that significant financial resources are being allocated by some international organizations to civil society organizations connected with the ruling political force, including in the anti-corruption field. Our studies show that these processes are often carried out under conditions of insufficient transparency and competitive procedures. It is noteworthy that the billions of drams in funding have not yet led to systemic results in the anti-corruption field, as evidenced by manifestations of systemic corruption in the country, Armenia’s Corruption Perception Index indicators in recent years, and challenges related to the independence of anti-corruption institutions.
2. Also noteworthy is the absence of positions from the aforementioned organizations, especially NGOs positioned in the anti-corruption field, regarding the crucial issue of the resignation of the Anti-Corruption Committee and SJC chairmen, despite a month having passed since the incident.

Also concerning is the filing of lawsuits by the ruling political force, state bodies, and state officials against media outlets, anti-corruption activists, and NGOs led by them regarding their expressed opinions on public systemic issues and possible corruption risks.

Taking into account the above, the Coalition’s Governing Board reaffirms its opinion that the following fundamental prerequisites are necessary for effective anti-corruption efforts:

1. Establishment of independent anti-corruption institutional system bodies.
2. Filling all leadership positions of the independent anti-corruption institutional system with professional, honest, and worthy personnel exclusively through open, transparent, merit-based, and apolitical competitions and procedures.
3. Embedding anti-corruption education in society and implementing large-scale anti-corruption awareness campaigns.
4. Introduction of effective corruption prevention mechanisms.
5. Application of unimpeded mechanisms for detecting corruption crimes and accountability, free from any political interference and selective approaches.

The Coalition also declares that it will monitor the entire process of selecting and appointing the new Chairman of the Anti-Corruption Committee and the RA Prosecutor General’s Deputy coordinating illicit asset forfeiture to ensure the transparency and compliance with the law of the process.

Note: The Anti-Corruption Coalition of Armenian CSOs is a professional civil society structure that was founded on November 28, 2014, in Yerevan. The Coalition currently has more than 50 civil society organization members, and the secretariat functions are carried out by the Armenian Lawyers’ Association.

20.12.2024

Governing Board of the Anti-Corruption Coalition of Armenian CSOs