Board Thread:Support Requests - Community Management/@comment-24040319-20140907080203/@comment-1267828-20140908154037

The answer to your question is mostly yes, although you're phrasing it in a very negative way.

It is true that admins do have the power to effectively ban, edit, lock, and control a wikia at whim, but they, like all users, are bound to the ToU and are not allowed to violate it, risking losing their username.