Daily Northern

Nordic News, Every Day

Two councilors dismissed and reelected amidst naming rights controversy in Ähtäri

Tuesday 29th 2024 on 17:38 in  
Finland
business, entertainment, finance

In Ähtäri, a series of unusual events unfolded throughout the fall, culminating last week in the dismissal of two councilors from the Finns Party due to a loss of confidence, as well as their subsequent re-election to trusted positions. The situation revolves around the naming rights associated with events organized by Ähtäri Events Oy, a company partially owned by the municipality.

The board of Ähtäri Events Oy has remained silent on the matter, citing confidentiality, but company representatives have now shared their perspective on the events. The statement was signed by Chairman Risto Sivonen, Secretary Arja Väliaho, and board member Reija Kaskimäki.

Last winter, council members Juha Nortunen and Jarkko Salo registered the names Ä-klubi and Ä-live, which are associated with a club and performance nights managed by Ähtäri Events. They claimed the registration was to protect the city and its finances. A peculiar dispute has led to a situation that could disrupt the entire city council.

Ähtäri Events Oy was formed in 2021 after the previous entertainment center in the city went bankrupt. Investors include Hotel Mesikämmen Oy (21%) and several local entrepreneurs (totaling 71.1%) who collectively invested €11,900, along with a shareholder loan of €47,540.

The transition of operations to Hotel Mesikämmen led to practical issues that resulted in other shareholders’ stakes being offered to Mesikämmen. However, the city has not yet acquired shares or granted loans to the company. The matter was discussed as a confidential business issue within the city council in January 2024.

Following Nortunen’s registration of the Ä-klubi name, he agreed to transfer the name but not to Ähtäri Events without conditions. Despite this, the name remains registered under his company. Meanwhile, Ähtäri Events has adopted new names, Äx-klubi and Äx-live, following unsuccessful negotiations. The situation has prompted an investigation into whether Nortunen and Salo retain the city’s trust, leading to a temporary committee’s formation. Despite developing mistrust, both were eventually reelected to their positions. The board of Ähtäri Events has expressed concern over whether the municipality can ensure confidentiality in sensitive matters.

Source 
(via yle.fi)