On August 19, 2015 Media Center hosted a discussion on “Legal and Financial Aspects of the Sports and Concerts Complex's Deal.” The speakers of the discussion Artak Manukyan, Procurement Expert of Transparency International Anticorruption Center (TIAC) and Lawyer Nikolay Baghdasaryan who thoroughly studied the buyer’s investment project, expressed expert opinion on the deal, revealing that the deal was not transparent, the documents supporting it were not grounded, and the buyer had shown itself to be an ineffective owner. It is known that during its successive meeting, held on August 13, 2015 the Armenian government approved the draft deal of selling Demirchyan Sports and Concerts Complex SNCO to NTAA Investment Group LTD for 30 million USD. The draft also provides an investment project for at least 100 million USD over the next four years.

It was decided by the government to withdraw the ownership of property belonging to Sport and Concert Complex SNCO by the Ministry of Defense and put it on sale. Both speakers have positive attitude of the privatization process itself. According to Artak Manukyan the Ministry of Defense and the state with its current approaches were unable to carry out effective operation of the Complex and be attractive, for the complex to serve as long term and prospective area ensuring entries in the state budget.

According to Artak Manukyan the main aim of privatization should be the development of a class of effective owners or institute of ownership. In order to be effective owner it should have experience, enjoy confidence in ownership projects and be able to implement any business activity following fair rules of game acceptable for society.

The second issue refers to transparency component. Such draft projects should first undergo public discussions and be approved by public, then the deal should be ratified by the government guided by respective procedures and evaluation methodology. Positive conclusion of Yerevan Urban Development Council was implied to be attached to that document, which was missing. Unfortunately it was a common practice that public agencies called to increase public role, participate ex post after the deal is over.

The draft project was not subject to shareholding. There are problems with procedures. As for investment part there is hardly any clause that is not worth criticism. There is no sufficient grounding for anything.

See the press release of Media Center.