Ministry demands EISA repay 1.33 million euros

Estonia’s Ministry of Economic Affairs and Communications is demanding that the Enterprise and Innovation Foundation (EISA) repay 1.33 million euros paid to the Estonian Chamber of Commerce and Industry, ERR reported. The ministry says the chamber’s director, Mait Palts, was involved in awarding the money while serving on EISA’s supervisory board.

Minister of Economic Affairs and Industry Liina Vahtras sent EISA an order requiring repayment of funds allocated in 2023. Palts submitted bids for contracts to bring in international experts, and his proposals were accepted. He also signed the resulting contracts.

EISA board chair Ursel Velve said the foundation did not agree that there had been a conflict of interest, describing it instead as an apparent conflict under the European Union’s interpretation. Palts said the arrangement was not a grant but a service EISA procured to help businesses enter foreign markets.

Palts resigned from EISA’s supervisory board in the spring after the matter came to light. The Ministry of Finance, which conducted an audit, disagreed with claims that there was no conflict of interest.

The economic affairs ministry said the risk was indirect because the money went to a representative organisation rather than directly to businesses. It said the audit could not establish whether the risk had materialised, but that strict rules governing EU funds meant the process had to end with repayment.

EISA will not appeal the decision and has agreed to repay the money. Velve said the foundation would cover the cost from savings made this year by improving efficiency and reducing spending on several activities.