Armenian prosecutors have announced plans to appeal a court order that would compel the Anti-Corruption Committee (ACC) to investigate Finance Minister Vahe Hovhannisyan over a controversial interest-free $1 million loan and potential abuse of office tied to his past business dealings.
A group of lawyers originally filed the complaint late last year after analyzing Hovhannisyan’s financial disclosures. They alleged that the minister used the sizable loan—obtained in 2021—to purchase a construction materials company, which he then ostensibly sold to a relative. In 2023, the same company received a government tax break to import goods valued at 1.8 billion drams ($4.5 million), raising concerns that the minister may have used his position to favor a business still under his influence.
The Finance Ministry dismissed the allegations, claiming the loan was acquired before Hovhannisyan entered government service. Nevertheless, Hovhannisyan, a key member of Prime Minister Nikol Pashinyan’s Civil Contract party, reportedly failed to properly declare the loan in required filings. He later attributed the omission to “typos.”
Despite the troubling questions raised, the ACC—a body touted by the government as a pillar of its anti-corruption agenda—initially declined to open a criminal investigation. That decision was upheld by a lower court earlier this year. However, the Anti-Corruption Court of Appeals reversed the ruling last week and instructed the ACC to launch a formal inquiry into whether the minister violated anti-corruption laws.
In a move that further complicates the government’s public commitment to transparency, the Prosecutor-General’s Office now says it will challenge that court decision in Armenia’s highest court. A spokesperson declined to elaborate on the rationale behind the appeal.
Observers note that the ACC has often taken swift action when allegations are leveled against opposition figures or former officials, but has shown considerably more restraint when claims involve current members of the ruling party. For critics, this growing pattern suggests that the government’s anti-corruption tools may be less about justice and more about political expediency—targeting rivals while shielding allies.
Hovhannisyan was promoted to Finance Minister in late 2022 after serving as deputy minister. Before entering government, he worked at the Asian Development Bank. His rapid rise and the handling of the investigation into his finances have only deepened skepticism about the political neutrality of Armenia’s anti-corruption institutions under Pashinyan’s watch.
