"Madonna" has robbed Armenia's state budget through rretirement homes and orphanages, the State Commission for the Protection of Economic Competition (SCPEC) said on Monday.
"We have registered over 200 cases and all of them have been forwarded to law enforcement agencies," said SCPEC Chairman Artak Shaboyan.
Besides "Madonna," another four companies are accused of ‘scalping' at the expense of retirement homes and orphanages.
As SCPEC expert Ani Stepanyan says during the tenders the aforesaid companies reached an agreement on pricing policy, dividing the market between them and supplying goods at higher prices than the actual market prices.
For his part, Mr Shaboyan added that state officials are also to blame for the abuse. However, charges have been filed against five economic entities, including Madonna.
"From now on, we shall blacklist all companies and entities. In this way, we shall ban wrongdoers from participating in public procurements," he said.
Though the SCPEC has not yet published the extent of abuse revealed in the result of checkups in some 18 companies, the Commission says those in charge of food, property and household goods in retirement homes and orphanages frequently abused their powers.
In the end, the SCPEC promised to continue investigations in the sector.
