BMW X5 M50 is a cooler, grittier and sportier version of the popular urban SUV. And it does cost a lot more then the basic model: a fully specked M50 drains purse by €123,000. Not available at dealerships, the car has to be ordered; in Estonia, few could afford that. Last year, this very model was ordered by former Rimi project manager Tiit Elias. Lease wasn’t needed, as some guys pay cash.
Mr Elias does love the expensive stuff. Armani, Jacob Cohën, Hermès – that’s his style. Add the upper end restaurants to the tune of Ribe, Tchaikovsky or Põhjaka – all in Estonia’s top ten.
Also, Mr Elias enjoys the Alpine ski resorts, and not just once a year. Be it Chamonix, Val d’Isère or Ischgl. The latter, for instance, is infamous for its afterparties, featuring stars like Pink, Beyoncé, Rihanna and Kylie Minogue. Adding it up: fascinating, tempting and, naturally, very expensive. If one can afford it, there’s no problem. If not, that’s another story...
Pay in bribes
At the moment, Central Criminal Police is suspecting Mr Elias in accepting of gratuities up to €600,000. Meanwhile, a civil proceeding is also underway, wherein Rimi – victim, in the case – accuses its former employee in cheating the company for years, causing damages.
In Rimi, Mr Elias was an important figure. Once upon a time, when Rimi was still a lot smaller, he even sat as CEO for a while. These past five years, however, he was project manager, responsible for all of Rimi’s real estate developments.
Whenever Rimi desired to build a new shop, or to renovate, repair or expand an existing one, this was Mr Elias’ job. He searched for companies to participate in Rimi’s procurements, communicated with suppliers, prepared tender documents, managed the processes from start to finish.
The options were wide. Once you want to build, you may order from building company A, or, rather, building company B, C or D. Needing new electrical systems, or fresh shelves for a store, again the question arises: from whom do I order these?
Thus, it’s no rocket science to imagine how an employee of such responsibility will one day develop an idea: «If you want Rimi to order €100,000 worth of construction work, from your company, then you’ll have to pay ten percent of that, personally to me.»
To clarify: the example was hypothetical. Investigations are still underway and the proceeding is in process; we do not know what Mr Elias’ «percentage» was of how exactly the schemes were weaved.
Rimi demands Mr Elias payment of at least €612,108 – probably, the sum is derived from the turnover of his private company Eliti Consult. Anyway, this is big money, in the old currency a whopping ten million kroons, almost. In most years, Rimi will not make that much profit.
In the scheme, Eliti Consult is a peculiar player. The turnover of the private limited company, established by Mr Elias in 2006, was basically made up by bribes. As Rimi’s paid project manager, Mr Elias directed the procurements to the «right» companies; in return, the companies or their representatives transferred «fees» into his private company Eliti Consult.
In some ways it outright amazing how public it all was. Eliti Consult sits nicely in the register; yearly, is filed its annual report; on the bribes, it diligently paid the state its taxes.
Assets arrested
In the end, it was Mr Elias’ luxurious lifestyle – or, as stated in court documents legalese: «lifestyle not corresponding to size of salary» – that proved fatal to the man.
We can only imagine how Mr Elias shared his highlights from yet another ski trip, showed off some Armani accessories, or told colleagues of his intent to order a new BMW, and, how there came the moment when the work buddies got to thinking: «How on earth can he afford that?»
In June, last year, Rimi internal audit unit launched investigations. In August, the issue was handed to police.
Back then, Mr Elias was not aware of being under surveillance. Even in last fall he was telling of his car soon to arrive in Estonia – in December. At the beginning of December, however, things got definite – and fast.
One day, in the morning, police apprehended Mr Elias. His assets were arrested. Rimi initiated civil proceedings and fired him.
Currently, one company and nine people are under suspicion: Mr Elias as the one accepting gratuities, and the rest as those granting gratuities.
The process is not finished. No party is not yet commenting. Prosecutor’s Office will not say a thing.
The Rimi representative Ruth Laatre only says: «We are not able to comment on details of said case not answer questions concerning former employee of Rimi Eesti Food.»
Mati Ombler, corruption crimes bureau chief at Central Criminal Police will also not disclose a half-finished investigation; even so, he underlines that police is after corruption crimes in public and private sectors alike.
I did try to talk to Mr Elias in person; a stranger, however, already answered his phone.
Comment
Andres Aavik, CEO of Skanska
We are aware that such stuff (construction companies paying bribes to get orders – edit) exists, on the market. Even so, this is not dominant and, in my opinion, this has decreased over time.
During the time I have been at the helm of Skanska, I could swear under lie-detector, if need be: no one has approached me to offer anything. Perhaps, indeed, they know on the market that it’s not worth trying to get Skanska into schemes like that; maybe that’s why we have never been invited to the Rimi tenders.
Usually, when things like this are going on, over time it will surface. People start to talk, suspicions arise.
This was not related to bribes, but, years ago, we did have a similar case happen (Skanska’s project manager Mihkel Kuld presented to company fictitious invoices worth tens of millions of kroons, which Skanska paid up – edit); even then, at a certain point we started to get hints and signals from the market, that things are not quite right.