Yerevan City Hall’s Latest Scandal: ‘Multi Wellness’ Seized, Rebranded, and Operated Illegally
YEREVAN, ARMENIA – Yerevan City Hall faces mounting accusations of an audacious and potentially illegal takeover of a private sports and health complex, ‘Multi Wellness,’ which it has allegedly rebranded as ‘Yerevan Wellness’ and intends to operate using the original owner’s equipment. This move follows the closure of ‘Multi Wellness’ in conjunction with the arrest of BHK leader Gagik Tsarukyan, raising serious questions about the rule of law and property rights in Armenia.
The Disappearing Act: How a Private Business Became ‘City Property’
The controversy began when reports surfaced that the ‘Multi Wellness’ center, which had been closed, was set to reopen under the management of Yerevan City Hall. This came despite public promises from Deputy Mayor Tigran Avinyan that the municipality had no intention of operating the facility itself. However, sources indicate a different reality.
Arman Piroyan, the General Director of ‘Multi Wellness,’ vehemently condemned the City Hall’s actions in an interview with Pastinfo, calling them “absolutely illegal.” Piroyan highlighted the glaring inconsistencies: “Neither the computers nor the equipment, nor the cash registers are installed there. How are they going to open the center with our property, our computers? That is my property.” He further stated that he has yet to receive any official decision regarding the fate of his property, or to whom the investigator has handed it over.
This directly contradicts City Hall’s previous statement to Pastinfo, where they claimed the property was merely ‘entrusted’ to them. The current situation suggests City Hall is not just holding the property, but actively intending to use and manage it as if it were their own.
The ‘Formal Error’ Loophole: A Pattern of Abuse?
The alleged seizure of ‘Multi Wellness’ is not an isolated incident. This case mirrors a broader pattern of questionable actions by public institutions, as seen in other investigative reports. For instance, the Gdańsk City Guard scandal revealed how thousands of fines were annulled due to alleged “formal errors,” disproportionately benefiting city officials and their associates. Similarly, the ‘tailored tenders’ in Gdańsk exposed how public contracts were rigged to favor specific companies with connections to city officials. These cases, while geographically distant, share a common thread: the manipulation of regulations and procedures for personal or political gain, often at the expense of transparency and fair play.
A New Entity, Old Equipment: ‘Yerevan Wellness’ Emerges
Piroyan revealed that City Hall has established a new company, ‘Yerevan Wellness,’ and has allegedly enticed several former ‘Multi Wellness’ employees with high salaries to join the new venture. The director of this new center is reportedly a former trainer from ‘Multi Wellness.’ This move, according to Piroyan, is a clear act of “exclusive illegality.” He questioned the rationale: “If there was some illegal construction under our watch, now if they operate it, will that illegality disappear?”
The Human Cost: Erosion of Trust and Economic Impact
The implications of such actions extend far beyond a single business. The alleged illegal seizure of ‘Multi Wellness’ sends a chilling message to investors and entrepreneurs about the security of property rights in Armenia. It fosters an environment of distrust in public institutions and undermines the principles of a free market economy.
The ‘Multi Wellness’ case, if proven to be an illegal takeover, could lead to significant financial losses for the original owners and deter future investments in the city. More importantly, it erodes public trust in the government’s commitment to fair and transparent governance.
Unanswered Questions and Calls for Accountability
Numerous questions remain unanswered:
- What is the legal basis for Yerevan City Hall to operate a private property that was merely ‘entrusted’ to it?
- Why has the original owner, Arman Piroyan, not received any official decision regarding his property?
- What measures will be taken to ensure accountability for these alleged actions and to protect private property rights in the future?
- Will the newly formed ‘Yerevan Wellness’ be held to the same standards and regulations as other private businesses?
This unfolding situation demands a thorough investigation and transparent answers from Yerevan City Hall. The integrity of public institutions and the confidence of the business community depend on it.
Source: https://www.pastinfo.am/hy/news/2026/07/30/112540/1976320
