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In Time of War and Global Pandemic, Fundraiser Ploy by Catholicos Karekin II, WD’s Hovnan Derderian Causes Public Outrage

Posted on August. 3. 2020

BY APPO JABARIAN
Executive Publisher / Managing Editor
USA Armenian Life Magazine (English-language print edition)
USA Armenian Life E-Newsletter (Electronic Distribution — e-blast)
Hye Kiank Armenian Weekly (Armenian-language print edition)
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www.armenianlif.com

Last week, USA Armemian Life Magazine editorial offices were inundated with numerous telephone calls, emails, postal mails sent by concerned American Armenians expressing outrage and indignation over a mass mailing by Western Diocese primate Hovnan Derderian soliciting donations for the “Renovation of the Mother Cathedral of Holy Etchmiadzin.”
Dr. Z. S. Andrew Demirdjian, Professor Emeritus of Social and Behavioral Sciences at the California State University, Long Beach, and author of many important books and numerous scholarly works wrote in a Friday article (see article on page E3): “As you well know, Armenia is currently facing belligerent and bellicose enemies from the East by Azerbaijan and from the West from Turkey. While our soldiers are bravely pushing back the inroads made by Azerbaijani armed forces, in the process we are losing precious lives of our men and women on the line. The virtue of grace dictates that it is a very inappropriate time to solicit for funds to renovate a place of worship when all the money should go into arming our men and women to protect our Homeland. When the world is wrestling with a deadly virus, and when next to the United States, Armenia is suffering the most from the attacks of this dangerous pandemic virus, people –especially our spiritual leaders– should be out in the front to help those who need the most help. Compassion requires all Armenians, especially our clergymen to show kindness, love, and caring toward the needy. And needy people we have in huge numbers right now in Armenia when the entire country is out of work.” (Dr. Demirdjian’s research interests lie in social and behavioral sciences. He has published 100s of articles and editorials in refereed journals and has received over 35 best paper/author awards for his research studies.)

UN, USAID, WORLD BANK Consultant on Good Governance Garbis Korajian stated via email: “The Recent Fundraising attempt for the ‘Renovation of the Mother Cathedral of Holy Etchmiadzin’ by Catholicos Karekin II and Arch. Hovnan Derderian is a disgraceful act and a last attempt to milk the diaspora Armenians of Western United States. As we have witnessed in the past, such fundraisings for the renovation and beautification of Holy Etchmiadzin and other churches have been conducted without any form of transparency and accountability. In fact, the lack of accountability and transparency is a deliberate act for these shameful pontiffs to divert funds and fill their pockets.”
Mr. Korajian lamented: “Unfortunately, for a long time, the diaspora Armenians have been lured by these same criminal minded individuals to donate, knowing well the softness most Armenians possess towards their motherland and its institutions. Unfortunately, the kindness and desire of the people to help has been exploited to the maximum, especially by Catholicos Karekin II and his MAFIA like leadership and his corrupt followers who have no shame, especially at a time when our poor country is facing serious internal difficulties triggered by the Covid 19 Virus as well as an external threat and possible escalation of war with Azerbaijan.”
Korajian concluded: “Fortunately, in the last 5 years, much has changed in the level of awareness of our people. We have taken matters in their own hands and have removed corrupt leaders like president Serj Sargsyan and his Kleptocratic Government from power. The next step for us would be to stop throwing our hard-earned money to enrich the abusive, exploitative, self-centered and dishonest Karekin II and his Mafia organization and start taking serious measures to remove them from our Centers of Worship.” (Mr. Korajian is recognized by several governments around the world for his work as a consultant for the World Bank, Canadian Int’l Development Agency (CIDA), the United States Agency for International Development (USAID), the United Nation Development Agency (UNDP), the Government of China and the Foreign Affairs Ministry in Nagorno-Karabakh; a graduate of Harvard’s Kennedy School of Government in Public Administration specializing in Ethical Leadership.)
On Friday, investigative journalist and an expert on Armenian Church canons and constitution law, Vosgan Mekhitarian, appeared on USA Armenian Life TV via AMGA Channel (Armenian Media Group of America Channel) and stated: “The fundraising campaign at the direction of Catholicos Karekin II and fundraising committee chairman, Arch. Hovnan Derderian is being conducted under a shroud of lack of transparency and accountability. This fundraising is abuse of our beloved people’s benevolent feelings towards the Armenian Church. Unfortunately within the last 20 years, millions of dollars have been disappeared under Karekin II’s leadership.”
Mekhitarian continued: “While an important segment of Armenia’s population is reeling from severe poverty, and the country is under economic dire condition and war threats by its archenemies Turkey and Azerbaijan, who are promising to complete the genocide and eradicate the Armenian nation from existence. It is categorically unacceptable that Karekin II and Arch. Derderian to siphon off additional millions of dollar. Stop building churches, instead build spiritual churches in the hearts of every Armenian, so that they are armed with spiritual strength and dedicate themselves to preserve their identity and the motherland.”
Founder and Managing Editor of Keghart.com Dikran Abrahamian, MD wrote via email: “It is outrageous to even fathom a fundraiser in time of war. On the contrary, It’s Etchmiadzin that needs to open its purse to our heroes on the frontline.”
Investigative reporter David Boyajian wrote via email: “From everything I have read in USA Armenian Life in the last year about the leadership of the Western Diocese and the latter’s finances, I question whether any new funds raised will be spent properly.” (David Boyajian’s investigative reports and commentaries have appeared in Armenian and non-Armenian media in the U.S. and internationally. His work is archived at www.armeniapedia.org/wiki/David_Boyajian.)
Jirair Tutunjian, a long-time Toronto editor and a consultant at Keghart.org, wrote via email: “Since KII’s election was blatantly fraudulent and since the clergyman-oligarch has continued his corrupt ways following his accession to St. Echmiadzin, I don’t consider him a clergyman let alone the head of our Church. Since the so-called renovations are dear to his heart, let him sell his illegally-acquired real estate and pay for the work. I wonder how many rubles Khrimian Hayrig had in his pocket when he died.”
During the last two decades $30 million were misspent by Karekin II on the renovation of the pontifical reception hall. While Karekin II claimed that the repairs cost $30 million, many construction cost experts asserted that the cost should not exceed $5 or $6 million. So where are the missing $25 million?
A lifetime supporter of Western Diocese who requested to remain anonymous stated: “A friend who had torn this flyer decided to share it with me … Armenia is suffering from the effects of COVID-19 and the hospitals are in dire need of financial assistance. The country is on a WAR alert at the length of its borders. Are the spiritual leaders living in a cloud out there and not aware of what really is happening in the real world? Or, have they lost their soul and they only care about padding their bank accounts under any name … lining their pockets? Could this be the last hurrah? …Are they seeing the light at the end of the tunnel? … Are they thinking, ‘Let’s get in as much as we can before we are canned!’”
In June 2019, Catholicos of All Armenians Karekin II and Western Diocese primate Hovnan Derderian declared the start of a worldwide fundraising campaign under the banner “The Renovation of the Mother Cathedral of Holy Etchmiadzin.”
Arch. Derderian and Karekin II had issued an open-ended worldwide plea for funding for the repairs of the Holy Etchmiadzin Cathedral. We were told that it “is our duty, as Armenians, to just give.” To give without knowing exactly how the money will be used? In 2019, many members of the American Armenian community had suggested an independent Worldwide Armenian Commission on Holy Etchmiadzin Preservation without ties to the present administration of the Holy See to conduct a comprehensive study of the needs to repair the Holy Etchmiadzin Cathedral. The proposal fell on deaf ears.
A case of misused funds: Benefactors and parishioners have been pursuing an accounting on the final costs of the construction of St. Leon Armenian Cathedral in Burbank, California built in 2010.
Original estimate of construction including contractors’ fees, hovered around $12-$14 million dollars. Eventually the costs were driven up to $25 million. In 2019, according to an independent construction cost expert analyst, the construction of the cathedral, in today’s dollar value, the dome and the parking lot would cost no more than $15 million! Where did the surplus $9-$10 million go?
Many American Armenians agreed that “as a course of action and for the sake of transparency and accountability an independent audit should be conducted so the benefactors and members of the community can have accurate information from the Diocesan Council and Arch. Hovnan Derderian of the Western Diocese as to where did millions of dollars go? May we suggest a certified accounting firm as KPMG to do the auditing. This community deserves it.”
Another case of misused funds: In 1998, major benefactors of Canada Diocese Mr. and Mrs. Chris and Annie Chakmakian established a foundation to help the orphans and widows of the fallen warriors of Artsakh and the orphans of Gyumri earthquake. The management of the fund was entrusted to Arch. Derderian, then Primate of Canadian Diocese. The Chakmakians donated $50,000 initially, another $25,000 the following year and undertook future annual contributions.
Mr. Chakmakian stated that “the last $25,000 contribution was allocated to Diocesan Endowment Fund, instead of our foundation, without our express consent and instruction. A guideline of principles and objectives was set up for the administration of funds. Within a short time he proposed to print a book of parables and promised to repay the fund upon its publication and sale. The cost for the said publication was $13,800 and was never repaid. In 1999 $13,550 was transferred to Armenia to help these children. When we verified the list, none of them were from Artsakh or Gumri. We eventually revealed that they were the children and families of his puppet priests and minions in Armenia. Some of them are quite well to do, I might add.”
Chakmakian continued: “My wife went to Armenia on 2 occasions in 1999 and 2001, to find those needy families and distribute the funds. Before her second departure in 2001, I communicated with him (Derderian), on more than one occasion, by phone, by letter, by fax that $12,000 US be made available to her on her arrival. Despite his many assurances and promises that the funds will be ready for her. In Armenia, he consistently stone walled her and stalled the fund transfer, with superficial excuses. It was quite apparent that he had his own agenda and had no sympathy or interest in those poor suffering children. After several repeated misallocations and misuse of funds, we finally concluded to terminate the foundation and requested to transfer the balance of the funds to Hayastan Foundation of Canada.”
Journalist, political cartoonist and book publicist Lucine Kasbarian lamented via email: “Armenians, by their apathy, are getting what they deserve.” (Lucine Kasbarian is the author of several books about Armenia and Armenians. lucinekasbarian.com)
To the delight of Lucine, world Armenians are increasingly coming out of their comatose state and apathetic mindset and are becoming proactive about their national church, state, and diasporan structures.
According to sources close to the Holy See of Etchmiadzin and Western Diocese, the one-year-old fundraising ploy by Karekin II and Derderian, has failed to yield the anticipated amount of funds. Their fundraising scheme had a year before the outbreak of Corona pandemic and war on Armenia’s border but Karekin II and Derderian still failed.
Now we see why!
A growing number of American and other Diasporan Armenians simply do not trust the current Armenian Church religious and lay leadership including the succeeding Diocesan Councils at Western Diocese starting with Joseph Kanimian, Esq. all the way to Adrienne Krikorian, Esq. The current lay leadership along with primate Derderian have a credibility gap as they have repeatedly failed in their fiduciary duties through serious Western Diocese By-Laws violations.
Millions of dollars are missing.