In a Yerevan administrative court today, ArmenTel CJSC has demanded that Ashot Poghosyan, a former company security chief, pay 1.783 billion AMD (approximately US$3.7 million) for losses the company incurred do to his actions on the job.

Poghosyan has confessed that he participated in setting up a cable link for international telephone calls that rerouted revenues in such a way as to avoid taxes.

The revenues were never recorded by ArmenTel’s accounting department, but rather were funneled to outside sources.

In the Kentron and Nork-Marash court, when asked by Judge Gagik Poghosyan, if he accepted the civil suit demands, Ashot Poghosyan at first replied “yes”. Soon after, the defendant said there were incomprehensible aspects to sustaining the amount of damages and that only after they were clarified would he be able to give a definite yes or no reply.

Manvel Grigoryan, Ashot Poghosyan’s lawyer, attempted to clarify how the amount in question was derived and whether it included VAT.

Hayk Hakobyan, plaintiff in the case, petitioned the court to call in, as a witness, one of the experts who investigated the financial aspects of the case.

To this end, the trial was postponed until November 11.