TALLINN — Timber transportation companies allegedly colluded to win a procurement of 1.74 billion krooni (€111.2 million) by the State Forest Management Center, causing an estimated tens of millions of krooni of damage for the state.

The forest department of the Ministry of Environment announced the procurement in the summer of 2008 to contract logistics companies for five years to haul timber, as the previous contracts had been canceled due to [private_supervisor]high fuel prices. The State Forest Management Center received offers from 58 companies for 38 contracts.

However, some of the companies that offered the least expensive deal and won a contract then subsequently canceled their offer. Authorities suspect these companies may have asked their more expensive rivals for money in exchange for this. The State Forest Management Center still signed those 38 contracts, but was suspicious and made a statement to the Estonian Competition Authority. In Oct. 2008 an investigation was initiated.

Nine companies are suspected in fraud. Rainer Laigu, a forestry specialist at the State Forest Management Center responsible of the procurement is alleged to have cooperated with the companies who made illegal offers.

Laigu is refusing to comment on the case.

“I will not comment on the issue according to my lawyer’s advice, “ Laigu told Baltic Reports.

Kadri Põldaru, a spokeswoman for the prosecutor’s office said that the pretrial investigation is finished, and the copies of criminal files were sent to the lawyers in February. The state has yet to press charges, though.

“The case has not yet been sent to the court, and no charges were pressed,” Põldaru told Baltic Reports.

The prosecutor’s office is not releasing anymore details, and Estonian Competition Authority also refused to comment the case. [/private_supervisor] [private_subscription 1 month]high fuel prices. The State Forest Management Center received offers from 58 companies for 38 contracts.

However, some of the companies that offered the least expensive deal and won a contract then subsequently canceled their offer. Authorities suspect these companies may have asked their more expensive rivals for money in exchange for this. The State Forest Management Center still signed those 38 contracts, but was suspicious and made a statement to the Estonian Competition Authority. In Oct. 2008 an investigation was initiated.

Nine companies are suspected in fraud. Rainer Laigu, a forestry specialist at the State Forest Management Center responsible of the procurement is alleged to have cooperated with the companies who made illegal offers.

Laigu is refusing to comment on the case.

“I will not comment on the issue according to my lawyer’s advice, “ Laigu told Baltic Reports.

Kadri Põldaru, a spokeswoman for the prosecutor’s office said that the pretrial investigation is finished, and the copies of criminal files were sent to the lawyers in February. The state has yet to press charges, though.

“The case has not yet been sent to the court, and no charges were pressed,” Põldaru told Baltic Reports.

The prosecutor’s office is not releasing anymore details, and Estonian Competition Authority also refused to comment the case. [/private_subscription 1 month] [private_subscription 4 months]high fuel prices. The State Forest Management Center received offers from 58 companies for 38 contracts.

However, some of the companies that offered the least expensive deal and won a contract then subsequently canceled their offer. Authorities suspect these companies may have asked their more expensive rivals for money in exchange for this. The State Forest Management Center still signed those 38 contracts, but was suspicious and made a statement to the Estonian Competition Authority. In Oct. 2008 an investigation was initiated.

Nine companies are suspected in fraud. Rainer Laigu, a forestry specialist at the State Forest Management Center responsible of the procurement is alleged to have cooperated with the companies who made illegal offers.

Laigu is refusing to comment on the case.

“I will not comment on the issue according to my lawyer’s advice, “ Laigu told Baltic Reports.

Kadri Põldaru, a spokeswoman for the prosecutor’s office said that the pretrial investigation is finished, and the copies of criminal files were sent to the lawyers in February. The state has yet to press charges, though.

“The case has not yet been sent to the court, and no charges were pressed,” Põldaru told Baltic Reports.

The prosecutor’s office is not releasing anymore details, and Estonian Competition Authority also refused to comment the case. [/private_subscription 4 months] [private_subscription 1 year]high fuel prices. The State Forest Management Center received offers from 58 companies for 38 contracts.

However, some of the companies that offered the least expensive deal and won a contract then subsequently canceled their offer. Authorities suspect these companies may have asked their more expensive rivals for money in exchange for this. The State Forest Management Center still signed those 38 contracts, but was suspicious and made a statement to the Estonian Competition Authority. In Oct. 2008 an investigation was initiated.

Nine companies are suspected in fraud. Rainer Laigu, a forestry specialist at the State Forest Management Center responsible of the procurement is alleged to have cooperated with the companies who made illegal offers.

Laigu is refusing to comment on the case.

“I will not comment on the issue according to my lawyer’s advice, “ Laigu told Baltic Reports.

Kadri Põldaru, a spokeswoman for the prosecutor’s office said that the pretrial investigation is finished, and the copies of criminal files were sent to the lawyers in February. The state has yet to press charges, though.

“The case has not yet been sent to the court, and no charges were pressed,” Põldaru told Baltic Reports.

The prosecutor’s office is not releasing anymore details, and Estonian Competition Authority also refused to comment the case. [/private_subscription 1 year]

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