The Sports and Concert Complex Accumulates Millions in Debt; Employees Plan Protest

Yesterday, it was reported that employees of the Karen Demirchyan Sports and Concert Complex (MHC) are planning to hold a protest near the Government building of Armenia.

The employees' discontent is related to delayed wages. According to information received by the media, in addition to months of overdue salaries, the new management is burdened by accumulated debts amounting to millions.

Last week, the building was even cut off from electricity, and the gas supply was halted due to these debts. This entire caustic situation arose from delays in the transfer of funds allocated from the state budget to the complex.

It should be noted that the 2019 state budget provided for 182 million 781.2 thousand drams for the "Karen Demirchyan Sports and Concert Complex" State Non-Commercial Organization, designated as maintenance costs (including VAT).

The second quarter of the year has begun, yet not a single dram has been transferred to the complex from the 2019 budget. The director of the Sports and Concert Complex confirmed the information regarding the delays in an interview with 168.am but avoided providing further comments.

The Ministry of Finance of Armenia also confirmed that no transfers have been made to the MHC for three months, citing the bureaucratic documentation process as the reason.

The official explanation from the Ministry of Finance is that a funding request from the State Property Management Committee for the expenses of the Sports and Concert Complex has not yet been submitted, preventing the ministry from providing funds.

The newly appointed director, Karen Ghazaryan, who moved from the "Sharm" holding to the complex, has managed to cope with this chaotic situation for the time being. Funds from the complex's rentals have helped clear wage debts, and negotiations have partially restored the gas supply. Similarly, they have managed to resolve the issue of reconnecting electricity.

“We have two funding sources — from the budget and from entrepreneurial activities. Until now, I can say that the funds gained from entrepreneurial activities have been enough to at least distribute salaries to people and partially pay for consumed gas and electricity. However, these funds cannot completely cover the expenses of the complex, and this situation has arisen due to delays in funding from the public sector,” explained Karen Ghazaryan.

Read the full article in today's issue of the newspaper.