Yerevan City Hall is currently facing intense scrutiny over its operation of the ‘Multi Wellness’ sports complex, a property that was seized from businessman Gagik Tsarukyan. The controversy stems from allegations that the City Hall is operating the facility, now rebranded as ‘Yerevan Wellness,’ without legal justification and is making contradictory statements regarding its ownership and operational rights.
City Hall’s Shifting Stance on ‘Multi Wellness’ Property
The core of the issue revolves around the status of the ‘Multi Wellness’ property. Initially, on July 28, 2026, Yerevan City Hall informed “Pastinfo” in writing that the movable property at 22 Khanjyan Street, where ‘Multi Wellness’ is located, was not its property but had been handed over for safekeeping. The City Hall explicitly stated it was only the owner of the immovable property at that address and was not responsible for the company’s operations or liabilities. This statement clarified that ‘Multi Wellness’ was a commercial entity, and its management had not been transferred to the Yerevan community.
However, just a month later, after “Pastinfo” inquired about the legal basis for the City Hall transferring the property, which was entrusted to it for safekeeping, to another company for use, the City Hall reversed its position. It then claimed that the sports complex was its property and not merely entrusted to it for safekeeping. This contradictory stance has fueled suspicions regarding the legality of the City Hall’s actions.
Unaddressed Violations and Continued Operation
Adding to the controversy, the City Hall is operating ‘Yerevan Wellness’ despite the fact that the violations that led to the unilateral termination of the contract with ‘Multi Wellness’ have not been rectified. On July 23, 2026, the City Hall had cited construction deviations from approved urban planning documents and an outstanding debt of 16,000,000 AMD for the right to develop the land plot as reasons for terminating the contract with ‘Multi Wellness.’
Despite these unaddressed violations, the City Hall is now operating the facility, effectively ignoring the very issues it previously deemed significant enough to break a contract. The City Hall’s response to inquiries about these violations has been evasive, stating that it cannot have contractual obligations to itself and that measures are being taken to eliminate the design deviations, without providing a timeline or specific details.
Financial Irregularities and Calls for Investigation
Further concerns have been raised about the financial operations of ‘Yerevan Wellness.’ It has been revealed that ‘Yerevan Wellness’ does not pay any taxes or transfer any funds to the city budget. Instead, its income is used to pay employee salaries. The City Hall’s official statement confirms this, stating that “the Yerevan community has no obligation to pay rent or other fees to itself, and employees’ salaries are generated from the activities of the sports complex.” This arrangement raises questions about the City Hall’s engagement in entrepreneurial activities using state funds without proper oversight.
In light of these developments, there are growing calls for the Prosecutor’s Office and the Anti-Corruption Committee to investigate the City Hall’s actions. Critics argue that the seizure of ‘Multi Wellness’ property and its subsequent use for entrepreneurial activities by the City Hall suggest potential corruption and a series of related offenses. The case of ‘Multi Wellness’ is not isolated, as the City Hall has been involved in other instances of contract termination and property seizures, though it claims not to keep separate records of such cases.
The controversy surrounding ‘Multi Wellness’ highlights broader concerns about transparency, accountability, and the rule of law in Yerevan’s municipal administration. The public awaits a thorough investigation into these allegations and a clear explanation from the authorities regarding the legal and financial aspects of the City Hall’s operations.
Source: pastinfo.am
