The Lori Regional Prosecutor has launched a criminal case regarding embezzlement allegations directed against "Varmash" Ltd. and certain company financial officers.

Preliminary investigation revealed that during May-December 2008, the director of the company and other officers failed to completely carry out road renovations at Katnarat as specified in a March 5, 2008 contract it signed with the RA Ministry of Transportation and Communications.

By not performing certain contractual duties, the company was able to embezzle just over 3 million AMD.