Unemployment fund blows €60k on gifts

TALLINN — Estonia’s Unemployment Insurance Fund is under fire for using 940,000 krooni (€60,182) to buy souvenirs from the director’s brother-in-law. The money could have instead paid for the re-training courses of 100 unemployed people.

The souvenirs were purchased with 678,000 krooni (€43,331) from the European Social Fund and the rest from the funds own coffers. The trinkets bought include reflectors, pens, pencils, folders, plastic envelopes, calendars, 4GB memory sticks, and clocks.

There were a total of 19 bidders for the souvenir purchase, but most of the sales went to AB Mad, whose owner is Ago Kurg, brother-in-law of Meelis Paavel, the Unemployment Insurance Fund general director.

Opposition members of parliament have expressed outrage at the fund’s spending choices. Parliamentarian Lauri Laasi of the Center Party sent an angrily-worded letter to asked Minister of Social Affairs Hanno Pevkur Tuesday, pointing out that 100 unemployed people could have received training courses with that money.

“Which is more important for people, job or a pen with a logo? How many unemployed will receive those pens?” Laasi told the press.

Pevkur said the ministry may conduct an internal audit on the expenses.

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