Michal: public-to-private moves are not a crime

Moving between the public and private sectors is a natural part of the labour market, but conflict-of-interest rules must be followed, Prime Minister Kristen Michal said in response to a query about former senior state officials and civil servants joining the defence and energy industries. ERR reported his comments.

Michal said recent years had seen more former senior officials and civil servants take jobs at private companies operating in the defence and energy sectors.

Former senior military officers Martin Herem and Veiko-Vello Palm now work for defence industry company Frankenburg Technologies. Other former officials who have moved to defence companies include Kusti Salm and Magnus Valdemar-Saar, while former MKM deputy secretary for energy Timo Tatar and former head of the prime minister’s office Gerrit Mäsesalu have moved into the energy sector.

The security police has also warned about the so-called revolving-door effect and recommended a cooling-off period for officials involved in state procurements worth hundreds of millions of euros.

Responding to MP Aleksandr Tšaplõgin, Michal said that movement between the public and private sectors was natural and even necessary for introducing different practices, provided that conflict-of-interest principles were observed.

He said any restrictions would have to take compensation into account. The government should therefore analyse as part of a broader public service reform which positions would warrant such a restriction, to what extent and for how long, Michal said.

Michal added that moving from the public sector to the private sector was not a breach of the law. To the state’s knowledge, no legal violations related to such moves had been identified, but competent authorities were required to investigate if suspicions arose.