Nora Baghdasaryan, Principal of the #1 Kapan Special Needs School had no idea that a criminal case had been launched against her for "abusing her position at the expense of the government". She first learned about the matter through the news.

"I and the chief accountant went to Yerevan and explained the matter. They told us that they would be sending additional materials." Principal Baghdasaryan argues that there was no abuse of her office and that rather the investigation was faulty. She even said that 20 million AMD was returned to the state budget. The Finance Department of the Syunik Regional Administration reports that most likely the auditors incorrectly used 2008 regulations to examine the activities of prior years and that naturally violations were bound to surface. Yesterday, the General Prosecutor's Office issued a statement that Principal Baghdasaryan had been charges with Part 1 of Article 308 of the RoA Criminal Code. The government argues that in 2006 and 2007 the principal spent some 5.6 million AMD over and above what had been allocated by the finance and economy ministries for school meals. In 2007, the school was divided into two establishments during a government sponsored reorganization. As a result, there was the school and a children’s' care center. Nora Baghdasaryan's son, Vahan Gharakhanyan, was selected to head the children's center. Everything was fine up until last month, when the local Kapan Prosperous Armenia Party branch complained to PAP leader Gagik Tsarukyan that the party held no official posts in the town. Tsarukyan, in turn, directed PAP ministers to take a look at the issue and appoint some party members to a few positions. The first institution they focused on was the children's center. An audit of the center soon followed and Mr. Gharakhanyan was called down to the local PAP offices and was asked to write out his resignation request. Mr. Gharakhanyan writes out the request but the Syunik Regional Administrator stepped in at the last minute and cancelled the move. Mr. Gharakhanyan continues to serve as the center's director. During a conversation with "Hetq", Mr. Gharakhanyan said that his resignation request had nothing to do with the audit. "Similar rumors had spread throughout town so I took back the request. I'll work until the entire matter is cleared up," he said.