Estonia, Markets and Companies
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Tuesday, 19.03.2024, 08:44
Supervisory boards of Estonian state companies may be in for major cleanup
In addition to appointment to office, the appointments
committee also can change the size of remuneration of members of supervisory
boards. Three years ago, for instance, the appointments committee raised
the remuneration for the chairman of the supervisory board of state-owned
energy group Eesti Energia from 472 euros to 2,000 euros.
The first of the supervisory boards to see its powers expire
this year is the board of Transpordi Varahalduse, owner of the aircraft of
Nordica, whose powers will expire in February. Of other more important
businesses, the powers of the supervisory boards of Eesti Energia, Eesti
Post, of some members of the supervisory board of Operail, of most members of
the supervisory board of Tallinn Airport, and of the supervisory board of
Tallinna Sadam will expire between May and September.
The government's decision to man the appointments committee
with politicians has put managers of state-owned companies on guard, with most
managers either declining comment or saying only vague things when asked about
the change. While both Eesti Energia and Omniva declined comment, Operail CEO
Raul Toomsalu praised the system in place now but remained vague on the new
arrangement.
"From our viewpoint the previous appointments
committee, which consisted of apolitical members with experience in business,
was very good. We had very good cooperation with the chairman of the appointments
committee, Erkki Raasuke, as a result of which a very constructive and
supportive supervisory board was selected in whom supporting the company's
business interests and meeting the expectations of the owner were balanced. We
hope that these principles will remain in place with the new appointments
committee and good cooperation will be preserved and will continue,"
Toomsalu told Postimees.
The rationale behind the creation of the appointments
committee system three years ago was to keep the supervisory boards of
companies and logically also relevant appointment committees away from
political whirlwinds. Decisions made by the Juri Ratas government have in
fact violated that principle, however, as last Thursday businessman Argo Luude,
a prominent member of the Estonian Conservative People's Party (EKRE), and Reet
Roos, active member of Isamaa and one of the party's biggest donors, were
appointed to the committee, Postimees said.
According to Postimees, Prime Minister Juri Ratas last
spring allegedly blocked the nomination of Luude for the post of minister of
the environment for absence of an impeccable reputation. As a result, a little
known person, Rene Kokk, got the environment portfolio belonging to EKRE under
the coalition agreement.
Luude is the owner of Eesti Keskkonnateenused, one of the
largest waste handling companies in Estonia. In February 2012, Luude
received a punishment under settlement procedure for an agreement undermining
competition which concerned a public procurement for street cleaning services
in Tartu. Luude received a pecuniary punishment of 17,040 euros, while the
company AS Veolia Keskkonnateenused managed by him had to pay 100,000 euros as
punishment.
Speaking on the "Raagime asjast" broadcast of the
Tre radio station associated with EKRE, Finance Minister Martin Helme said
explaining Luude's appointment that the connection between the government and
state-owned companies had become too loose.
"It could freely happen, and in fact did -- not during
this government but the previous one -- that the management of a company would
say that we absolutely don't care about what you think. We have a supervisory
board here that has been appointed by the appointments committee. Talk to them
if you want to change something, otherwise we will not do a thing," Helme
said, adding that he philosophically doesn't agree with it that the government
doesn't have a say in companies belonging to it.
The EKRE minister also said he believes that it's better to
have people on supervisory boards who have made their world view known by
joining a political party than ardent champions of one world view or another
who pretend to be impartial.
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