After RFE/RL yesterday reported that the former KGB, the National Security Service (NSS), had arrested a human rights lawyer responsible for protecting the rights of citizens standing in the way of a multi-million dollar construction project in central Yerevan, comes some more disturbing news. Now, two top executives of Royal Armenia Coffee have been arrested by the NSS on charges of fraud and smuggling.

The case could possibly be politically motivated in so much that Gagik Hakobian and Aram Ghazarian recently spoke out about high level corruption in the Armenian Customs Service.

Criminal proceedings against the Royal Armenia executives were launched by the National Security Service (NSS), the Armenian successor to the KGB secret police, last spring. The case is reportedly based on a complaint filed by a U.S. citizen of Armenian descent who claims that Royal Armenia owes him $164,000 for coffee supplies and has failed to pay up. The man, identified as Vache Petrosian, has also alleged that Hakobian and his associates forged financial statements to understate the volume of their imports.

As Hakobian’s lawyer says in the news item, since when did the former KGB concern itself with case of alleged fraud? Interestingly, RFE/RL reported yesterday that Vahe Grigorian was also charged with fraud and placed in pre-trial detention. Convenient. Means he can’t protect the rights of the guys holding out in the face of the largest ever land grab in central Yerevan. It’s a police matter for sure, and not one for the former KGB to deal with. Unless, of course, you consider that the system only exists to protect itself.

Speaking at a news conference last June, Hakobian charged that he is being prosecuted in retaliation for its high-profile battle with the customs chiefs. “We are dealing with a group of officials who set unofficial rules, and if you don’t comply with those rules then you must not operate,” he said.

The full item can be read online here. Interestingly, it’s worth pointing out that Yektan Turkyilmaz was also arrested by the NSS and not Customs as you would expect. Concerning developments and perhaps even a regression back to the Soviet era. Interestingly, in other cases of alleged fraud, the system does absolutely nothing when those closest to it are believed to be involved.