Vahtras-linked startups received €1.25 million in EISA support

Startups linked to newly appointed Economy and Industry Minister Liina Vahtras received a total of €1.25 million in support from the Enterprise and Innovation Foundation (EISA) while she served on its board, ERR reported. Prime Minister Kristen Michal said Vahtras followed the rules because she did not participate in the funding decisions.

Vahtras took the oath of office as minister in parliament on Wednesday. She had led EISA’s e-Residency programme since 2023 and joined the foundation’s board last summer.

Centre Party parliamentary group leader Lauri Laats raised the issue with Michal, saying Vahtras had a conflict of interest as an EISA board member. Laats said Vahtras continued to serve as the sole board member of Rochna Invest OÜ after joining EISA’s board, a position she had held since June 2023.

Rochna Invest is wholly owned by Cyprus-registered Rochna Holdings Ltd, whose registered beneficial owner is entrepreneur Timo Rein, Laats said. Rochna Invest holds stakes in several Estonian startups.

According to information made public, Vahtras’s term on the EISA board overlapped with the period when EISA granted about €1.25 million to companies in Rochna Invest’s portfolio.

Bisly OÜ received the largest single grant, slightly more than €454,000, in October last year. Antegenes OÜ and Bidrent OÜ received a combined €803,665 from EISA during the same period.

Laats noted that EISA had confirmed Vahtras did not participate in decisions on the specific grants and had declared her connection to Rochna Invest. He nevertheless questioned whether formally withdrawing from individual decisions is enough to prevent a conflict of interest, or whether public institutions must also consider the appearance of a conflict, trust and decision-making transparency.

He also pointed out that the economy and industry minister is responsible for entrepreneurship and innovation policy, while EISA falls within the ministry’s area of responsibility. Vahtras served on EISA’s board before becoming minister.

Michal said at a government press conference that Vahtras had sent him an explanation after the issue appeared in the media. According to that explanation, she had acted in accordance with the rules.

Michal said two principles were important in such cases: any interest in a business must be declared when a person is a public-sector decision-maker, and the person must not participate in related decisions. He said Vahtras had declared her interest and had not taken part in the grant decisions.

ERR has also asked Vahtras for comment and will publish it when available.