Readers will probably have heard of the recent incident that took place in the vestibule of the Marriott Hotel in Yerevan.

Syunik Regional Governor Surik Khachatryan is alleged to have hit businesswoman Silva Hambardzumyan. She had recently publicly claimed that Khachatryan had expropriated over $100 million in mining equipment and wasn’t returning it.

In the press and elsewhere the incident has mostly been viewed from a moral and humanistic perspective.

This is to be expected given the fact that Khachatryan is known for his eccentric behaviour and his ability to elude prosecution for his actions.

However, the incident underscores a deeper, systematic, context that serves to formulate relations between business people and government officials in general.

Silva Hambardzumyan, a player in Armenia’s mining sector, isn’t a new face. The sector is closely controlled by authorities in Armenia and not just anyone can get a piece of the pie. There is a set of unwritten rules that all players must adhere to.

The fact that Hambardzumyan has been able, up till now, to silently and effectively advance her business interest in the sector means that she has been regarded as a trustworthy element by the government.

Now, she has fired the warning shots of a battle with one of the pivotal players of the governing system who is not only a regional governor but also a businessman deeply involved in the Syunik Mining sector. In other words, what we are witnessing is a debate internal to the system that finally broke out in the open.

The Special Investigative Service has already launched two cases – on based on the claims of Hambardzumyan regarding the theft of expensive equipment, and the second, regarding the incident at the Marriott Hotel.

In the first place, all this is unprecedented in the sense that, in the past, the Syunik Regional Governor has never faced legal responsibility. He’s been given a “free pass” and his actions have been overlooked by law enforcement, thus allowing him to build a feudal system in Syunik.

On the other hand, of note aren’t only the recent statements made by Silva Hambardzumyan regarding the theft of her property, but that the incident of hooliganism right smack dab in the lobby of the Marriott Hotel hasn’t elicited any public response from the ruling regime.

It cannot be ruled out that this is a preliminary pretext to finally get free of Khachatryan, but it doesn’t seem probable. Usually, in cases where the authorities wish to get rid of undesirables or those that have nothing else to offer, they resort to noisy and public shows.

That’s what happened in the case of the resignations former Yerevan Mayor Gagik Beglaryan and to a lesser extent, former Minister of Justice Gevorg Danielyan. It would seem that the start of the scandal campaign against Surik Khachatryan doesn’t really interest the authorities.

This can mean two things. First, the authorities have no desire to remove the regional governor and do not wish to create raise unnecessary noise or expectations on the matter. If this is the case, then the final verdict regarding the criminal charges levied against him have already been decided and it will just be a matter to exonerate him.

Regarding the beating of the businesswoman, Khachatryan can avoid punishment by a mere slap on the wrist and a disciplinary warning. But in this case, Silva Hambardzumyan will come out as a liar.

If this is not an attempt to remove Hambardzumyan as a player and to take control of her property, then it means that, at minimum, it aims to resolve the dispute between the businesswoman and regional governor that has now gone public.

In this sense, what is of note is that the case regarding the incident at the hotel was initiated in terms of a “beating”. This leaves the door open for the case to be dropped if the two sides agree.

In other words, in this case we are dealing with several issues and factors at once that do not appear all at once under the simple impact of intrigue.

First, at issue here is to the processes taking place in the mining sector keep top secret and the virtual vulnerability of private business from a host of various violations.

Second, are the business interests that lead to the behaviour exhibited by the regional governor. They constitute a clear violation of the conflict of interest’s principle and would suffice to dismiss him.

Third, is making a choice as to the application of punishment, subjecting one to responsibility, for these violations and illegalities.

In essence, for the same offence, one can be punished by being dismissed from the job, as was the case of Gagik Beglaryan, or another, in this case Surik Khachatryan, can be defended, if of course, the cases produce no result.

And finally, this incident and its future developments will answer the following question – will the government really stick to achieving its stated goals and ideas that it likes to constantly talk about?

The president has spoken of the need for government officials and their relatives to comport themselves properly and discreetly on more than one occasion. In his November 9th speech before the Convention of the Armenian Union of Industrialists and Entrepreneurs, the president even spoke of the need to separate the business and government sectors in Armenia.

“Yes, we are at a new beginning. Historic necessity commands transformation: our state employees should transform, public figures, businessmen and generally all citizens of the Republic of Armenia should transform. Entrepreneurship must be unceasingly separated from the state structure and authorities. Instead, the state should learn to fully respect and ensure each citizen’s and each businessman’s interest. State and businessman should become reliable partners; otherwise any program aimed at supporting private enterprise will be ineffective.”

We can only wait to see when such transformation starts and who will start it.