Govt drops Garden Helsinki support amid corruption allegations

The four-party alliance government led by Kansallinen Kokoomus (National Coalition Party-NCP) on Monday decided to withdraw the planned 35-million-euro conditional political support for the Garden Helsinki arena project amid corruption allegations.

The decision was taken in an extraordinary cabinet meeting convened by Prime Minister Petteri Orpo to finalise the government statement scheduled to be submitted to the rare Parliament session on Tuesday, said a government press release.

The Prime Minister said the government would no longer proceed with the subsidy but denied any corruption in the original decision, reported Xinhua.

He acknowledged "clear mistakes" in lobbying for the project and said delays, changes to the project and shifting market conditions had undermined the rationale for the funding.

The subsidy, agreed by the governing parties in April 2025, was to cover 10 percent of the cost of the planned Garden Helsinki venue at Töölö in Helsinki, a multipurpose arena to be the new home of the Helsinki IFK ice hockey team.

The subsidy remained conditional on the project being implemented, with detailed eligibility criteria left to further preparation by government officials. No funds have been paid.

The controversy erupted after local media reported that the project company's chairman had repeatedly contacted government officials and members of Orpo's staff before the funding pledge was made.

Opposition parties have questioned the selection process and whether political connections influenced the decision.

The National Audit Office is investigating whether the company complied with lobbying transparency rules, while the Chancellor of Justice is examining related complaints.

Although the government has withdrawn its support for the subsidy,

Tuesday's parliamentary session will proceed as planned, requiring the government to defend its handling of the case.

Orpo on Friday called the Monday´s extraordinary cabinet meeting to discuss about the alleged corruption regarding the government conditional funding for the Garden Helsinki arena project.

Earlier on July 16, Speaker Jussi Halla-aho decided to convene parliament session on Tuesday breaking the ongoing summer recess to debate the allegations of corruption regarding the project led by led by former Economic Affairs Minister and former Helsinki Mayor of ruling Kansallinen Kokoomus (National Coalition Party-NCP) Jan Vapaavuori.