Armenia probes irregularities in privatisation of Araratcement-linked health resort

Armenia’s Prosecutor General’s Office has identified a series of alleged violations in the privatisation and subsequent transfer of the “Golden Key” health resort.

The facility, previously owned by the company Araratcement, is linked to a broader corporate network once associated with businessman and politician Gagik Tsarukyan, former leader of the Prosperous Armenia party, Caliber.Az reports, citing local media.

Investigators say the privatisation process began with a 2003 government decision authorising the sale of the “Golden Key” sanatorium at a significantly reduced minimum price compared with its assessed value. The winning bid was awarded to Araratcement, which committed to making modest investment pledges and creating 30 jobs within two years.

However, prosecutors allege that the company later submitted falsified documentation claiming it had met its contractual obligations. Authorities further say that state officials failed to properly verify compliance, allowing the transfer of ownership to proceed and resulting in alleged financial losses to the state.

The Cadastre Committee subsequently registered ownership of the property and associated land rights in favour of Araratcement in 2004.

In response to the findings, prosecutors have filed a case in the Administrative Court seeking to invalidate the state registration of ownership over the property in the Ararat region. The investigation also extends to other privatisation and land acquisition processes involving the company.

The case adds to a series of ongoing legal reviews into past state asset sales in Armenia, with authorities scrutinising whether contractual obligations were properly enforced during early 2000s privatisation deals.