TALLINN — New details in the unemployment fund graft scandal appear to absolve the social affairs minister but continue to provoke questions about the conduct of the fund director.

Meelis Paavel, chairman of the management board at the Unemployment Insurance Fund said he withdrew himself from signing the document allowing the expenses[private_supervisor] because the company in question belongs to his brother-in-law, Ago Kurg. Yet the fund cannot explain which personnel selected Kurg’s company AD Mad, why the purchase was split in two allowing it to avoid the scrutiny of the supervisory board and why management board member Erik Aas alerted the Public Procurement Office about his suspicions that the deal was corrupt.

AD Mad was selected out of 19 companies competing for the procurement by the evaluation commission despite having no employees nor an economic activity at the time. The fund is refusing to disclose which personnel are on that commission.

“I was one of the evaluation commission members, but the rest of the names are irrelevant,”  Erko Vanatalu, the unemployment fund press spokesman told Baltic Reports.

The Public Procurement Office says the fund broke the law by dividing the procurement to two to keep the sum below €40,000 and therefore conducting it through summary procedure, where the approval of supervisory board is not needed.

Andres Veel, a spokesman for the Public Procurement Office said that the fund should have done only one procurement.

“I think they turned to the procurement office hoping to get the positive answer, but instead several flaws were found,” Veel told Baltic Reports.

Hanno Pevkur, the Minister of Social Affairs said he was not aware of the purchase fund’s plan to purchase office supplies and souvenirs but respective measures were launched.

“We decided with the supervisory board to order an investigation from the Public Procurement Office, and the audit company KPMG,“ Pevkur told Baltic Reports.

KPMG’s results will arrive on February 26, after that the Supervisory Board will decide their further actions. [/private_supervisor] [private_subscription 1 month]
because the company in question belongs to his brother-in-law, Ago Kurg. Yet the fund cannot explain which personnel selected Kurg’s company AD Mad, why the purchase was split in two allowing it to avoid the scrutiny of the supervisory board and why management board member Erik Aas alerted the Public Procurement Office about his suspicions that the deal was corrupt.

AD Mad was selected out of 19 companies competing for the procurement by the evaluation commission despite having no employees nor an economic activity at the time. The fund is refusing to disclose which personnel are on that commission.

“I was one of the evaluation commission members, but the rest of the names are irrelevant,” Erko Vanatalu, the unemployment fund press spokesman told Baltic Reports.

The Public Procurement Office says the fund broke the law by dividing the procurement to two to keep the sum below €40,000 and therefore conducting it through summary procedure, where the approval of supervisory board is not needed.

Andres Veel, a spokesman for the Public Procurement Office said that the fund should have done only one procurement.

“I think they turned to the procurement office hoping to get the positive answer, but instead several flaws were found,” Veel told Baltic Reports.

Hanno Pevkur, the Minister of Social Affairs said he was not aware of the purchase fund’s plan to purchase office supplies and souvenirs but respective measures were launched.

“We decided with the supervisory board to order an investigation from the Public Procurement Office, and the audit company KPMG,“ Pevkur told Baltic Reports.

KPMG’s results will arrive on February 26, after that the Supervisory Board will decide their further actions. [/private_subscription 1 month] [private_subscription 4 months]because the company in question belongs to his brother-in-law, Ago Kurg. Yet the fund cannot explain which personnel selected Kurg’s company AD Mad, why the purchase was split in two allowing it to avoid the scrutiny of the supervisory board and why management board member Erik Aas alerted the Public Procurement Office about his suspicions that the deal was corrupt.

AD Mad was selected out of 19 companies competing for the procurement by the evaluation commission despite having no employees nor an economic activity at the time. The fund is refusing to disclose which personnel are on that commission.

“I was one of the evaluation commission members, but the rest of the names are irrelevant,” Erko Vanatalu, the unemployment fund press spokesman told Baltic Reports.

The Public Procurement Office says the fund broke the law by dividing the procurement to two to keep the sum below €40,000 and therefore conducting it through summary procedure, where the approval of supervisory board is not needed.

Andres Veel, a spokesman for the Public Procurement Office said that the fund should have done only one procurement.

“I think they turned to the procurement office hoping to get the positive answer, but instead several flaws were found,” Veel told Baltic Reports.

Hanno Pevkur, the Minister of Social Affairs said he was not aware of the purchase fund’s plan to purchase office supplies and souvenirs but respective measures were launched.

“We decided with the supervisory board to order an investigation from the Public Procurement Office, and the audit company KPMG,“ Pevkur told Baltic Reports.

KPMG’s results will arrive on February 26, after that the Supervisory Board will decide their further actions.[/private_subscription 4 months] [private_subscription 1 year]because the company in question belongs to his brother-in-law, Ago Kurg. Yet the fund cannot explain which personnel selected Kurg’s company AD Mad, why the purchase was split in two allowing it to avoid the scrutiny of the supervisory board and why management board member Erik Aas alerted the Public Procurement Office about his suspicions that the deal was corrupt.

AD Mad was selected out of 19 companies competing for the procurement by the evaluation commission despite having no employees nor an economic activity at the time. The fund is refusing to disclose which personnel are on that commission.

“I was one of the evaluation commission members, but the rest of the names are irrelevant,” Erko Vanatalu, the unemployment fund press spokesman told Baltic Reports.

The Public Procurement Office says the fund broke the law by dividing the procurement to two to keep the sum below €40,000 and therefore conducting it through summary procedure, where the approval of supervisory board is not needed.

Andres Veel, a spokesman for the Public Procurement Office said that the fund should have done only one procurement.

“I think they turned to the procurement office hoping to get the positive answer, but instead several flaws were found,” Veel told Baltic Reports.

Hanno Pevkur, the Minister of Social Affairs said he was not aware of the purchase fund’s plan to purchase office supplies and souvenirs but respective measures were launched.

“We decided with the supervisory board to order an investigation from the Public Procurement Office, and the audit company KPMG,“ Pevkur told Baltic Reports.

KPMG’s results will arrive on February 26, after that the Supervisory Board will decide their further actions.[/private_subscription 1 year]

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