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EMBATTLED BUSINESSMAN LEAVES SPAIN FOR ARMENIAN JAIL
By Ruzanna Stepanian
Radio Liberty, Czech Rep.
Oct 3 2007
The owner of a coffee packaging company locked in a bitter dispute
with the government returned to Armenia and was swiftly arrested
early on Wednesday less than three months after being cleared of
fraud charges and released from jail.
Gagik Hakobian, the leading shareholder in the Royal Armenia company,
interrupted his reported medical treatment in Spain and flew back
to Yerevan to risk a lengthy prison sentence sought by the Armenian
customs and law-enforcement authorities.
The latter insisted on their controversial accusations even after
Hakobian and a senior company executive, Aram Ghazarian, were
sensationally acquitted by a Yerevan court on July 16. The two men
had been jailed two years ago after publicly accusing senior customs
officials of corruption.
The Royal Armenia case is widely seen as a litmus test of rule of law
and judicial independence in Armenia. The company and its lawyers say
the government's handling of the case makes a mockery of its declared
efforts to create a level playing field for all businesspeople and
to make courts more independent.
Hakobian was detained by police at Yerevan airport immediately
after disembarking from the plane. "He arrived in high spirits and
was prepared for his arrest," his defense attorney, Ashot Sargsian,
told RFE/RL. "He had his shaving kit, towel, toothpaste and other
hygiene items on him."
Armenia's Court of Appeals issued an arrest warrant for Hakobian last
month after he failed to attend any of its hearings on an appeal filed
by prosecutors against the July verdict. The businessmen assured the
court from Spain that he did not flee the country and will return
home soon.
Hakobian, according to his lawyer, hoped to be present at the next
court hearing that was scheduled for Wednesday. However, the high
court adjourned it until October 15, citing trial prosecutors'
failure to attend the session.
The prosecutors were spotted in the court building shortly afterwards,
though. Pressed by journalists, they claimed to have accidentally
arrived late.
Sargsian claimed that the hearing was cancelled deliberately. "The
court knew in advance that the prosecutors will turn up late today
and adjourned the session to make sure that Gagik Hakobian is kept
in detention until October 15," he said. "The judge [presiding over
the trial] will probably relish that."
In a phone interview with RFE/RL last week, Hakobian stood by his
view that the criminal case was "fabricated" in retaliation for Royal
Armenia's refusal to give bribes to senior customs and public exposure
of rampant corruption within the State Customs Committee (SCC).
The SCC is headed by Armen Avetisian, a figure close to Prime Minster
Serzh Sarkisian and reputedly one of Armenia's wealthiest men. His
deputy Gagik Khachatrian is also believed to have extensive business
interests. The Royal Armenia owner alleges that Khachatrian personally
offered to give his company privileged treatment in return for sharing
in its extra profits.
Khachatur Sukisian, a millionaire businessman and parliamentarian,
publicly accused Khachatrian of obstructing free enterprise and
fair competition in the country. "When it comes to competition,
that person will trump up everything to make life hard for local,
Diasporan or any other businessmen," Sukiasian charged at the time.
Both Avetisian and Khachatrian have denied the Royal Armenia
allegations, saying that it is the coffee company that broke the law
by avoiding paying more than 1 billion drams ($3 million) worth of
taxes and import duties.
However, a Yerevan court of first instance found the accusations of
tax evasion and other fraud leveled against Hakobian and Ghazarian
baseless, rejecting prosecutors' demands that the two men be sentenced
to 12 and 11 years' imprisonment respectively. The defendants walked
free in the courtroom as a result.
Their acquittal was a rare instance of an Armenian court rebuffing
prosecutors. The judge who handed down the ruling, Pargev Hovannisian,
is now facing disciplinary action, ostensibly unrelated to the Royal
Armenia case, and the possibility of dismissal. The Council of Justice,
a body overseeing the Armenian judiciary, is to decide by next week
whether to ask President Robert Kocharian to fire Ohanian or sanction
him otherwise.
By Ruzanna Stepanian
Radio Liberty, Czech Rep.
Oct 3 2007
The owner of a coffee packaging company locked in a bitter dispute
with the government returned to Armenia and was swiftly arrested
early on Wednesday less than three months after being cleared of
fraud charges and released from jail.
Gagik Hakobian, the leading shareholder in the Royal Armenia company,
interrupted his reported medical treatment in Spain and flew back
to Yerevan to risk a lengthy prison sentence sought by the Armenian
customs and law-enforcement authorities.
The latter insisted on their controversial accusations even after
Hakobian and a senior company executive, Aram Ghazarian, were
sensationally acquitted by a Yerevan court on July 16. The two men
had been jailed two years ago after publicly accusing senior customs
officials of corruption.
The Royal Armenia case is widely seen as a litmus test of rule of law
and judicial independence in Armenia. The company and its lawyers say
the government's handling of the case makes a mockery of its declared
efforts to create a level playing field for all businesspeople and
to make courts more independent.
Hakobian was detained by police at Yerevan airport immediately
after disembarking from the plane. "He arrived in high spirits and
was prepared for his arrest," his defense attorney, Ashot Sargsian,
told RFE/RL. "He had his shaving kit, towel, toothpaste and other
hygiene items on him."
Armenia's Court of Appeals issued an arrest warrant for Hakobian last
month after he failed to attend any of its hearings on an appeal filed
by prosecutors against the July verdict. The businessmen assured the
court from Spain that he did not flee the country and will return
home soon.
Hakobian, according to his lawyer, hoped to be present at the next
court hearing that was scheduled for Wednesday. However, the high
court adjourned it until October 15, citing trial prosecutors'
failure to attend the session.
The prosecutors were spotted in the court building shortly afterwards,
though. Pressed by journalists, they claimed to have accidentally
arrived late.
Sargsian claimed that the hearing was cancelled deliberately. "The
court knew in advance that the prosecutors will turn up late today
and adjourned the session to make sure that Gagik Hakobian is kept
in detention until October 15," he said. "The judge [presiding over
the trial] will probably relish that."
In a phone interview with RFE/RL last week, Hakobian stood by his
view that the criminal case was "fabricated" in retaliation for Royal
Armenia's refusal to give bribes to senior customs and public exposure
of rampant corruption within the State Customs Committee (SCC).
The SCC is headed by Armen Avetisian, a figure close to Prime Minster
Serzh Sarkisian and reputedly one of Armenia's wealthiest men. His
deputy Gagik Khachatrian is also believed to have extensive business
interests. The Royal Armenia owner alleges that Khachatrian personally
offered to give his company privileged treatment in return for sharing
in its extra profits.
Khachatur Sukisian, a millionaire businessman and parliamentarian,
publicly accused Khachatrian of obstructing free enterprise and
fair competition in the country. "When it comes to competition,
that person will trump up everything to make life hard for local,
Diasporan or any other businessmen," Sukiasian charged at the time.
Both Avetisian and Khachatrian have denied the Royal Armenia
allegations, saying that it is the coffee company that broke the law
by avoiding paying more than 1 billion drams ($3 million) worth of
taxes and import duties.
However, a Yerevan court of first instance found the accusations of
tax evasion and other fraud leveled against Hakobian and Ghazarian
baseless, rejecting prosecutors' demands that the two men be sentenced
to 12 and 11 years' imprisonment respectively. The defendants walked
free in the courtroom as a result.
Their acquittal was a rare instance of an Armenian court rebuffing
prosecutors. The judge who handed down the ruling, Pargev Hovannisian,
is now facing disciplinary action, ostensibly unrelated to the Royal
Armenia case, and the possibility of dismissal. The Council of Justice,
a body overseeing the Armenian judiciary, is to decide by next week
whether to ask President Robert Kocharian to fire Ohanian or sanction
him otherwise.