Hefty haul – Rail Baltic crossties

Photo: Liis Treimann / Postimees

At the beginning of October, economy minister Urve Palo put together a separate holding company for the preparation of Rail Baltic – a top desirable EU funds based project for three-four-five years to come.

Be it right or wrong, but traditionally the council seats in such companies have been distributed coalition-wise on «two to me and two to you basis». CEO to the thing has been selected by public competition.

The creation of the team at hand struck Reform Party somewhat as a surprise, as the usual would be for a state enterprise council of this sort to include at least one official of economy ministry and one from finance ministry (the latter also required by State Assets Act) and, as the general custom, representatives of both coalition partners.

To manage the Estonian subsidiary to the Baltic joint company building the path to Europe, former Estonian Railways board member Indrek Orav was elected. The council features Illar Kaasik, Anti Moppel and Agris Peedu.

Mr Kaasik has been a member to both soc dems (SDE) and Reform Party. Still, his longer and closer ties have been to soc dems and especially so with Ms Palo as related to Viimsi Commune issues (the latter having served as soc dems Viimsi region head). Mr Moppel is adviser at economy ministry, Mr Peedu representing finance ministry.

Toobal toughens inquiry

As required by EU, Estonian Railways has been split into two: one half deals with infrastructure, the other with carriage of goods (EVR Cargo). While during the IRL/Reform Party coalition, on basis of their treaty, one half was under IRL (the infrastructure and its head Taavi Madiberk) and the other under Reform (Cargo and Viljar Arakas), now soc dems hold both.

The building of Rail Baltic in Estonia and the manning of the company related to it courts controversy by the major soc dems supporter Oleg Ossinovski having stated he is interested in building the Rail Baltic railway in Estonia. All that is logical; Mr Ossinovski’s firm Skinest Rail is among the largest in Estonia and active in the field in multiple countries.

A week ago, Riigikogu Centre Party faction and Constitutional Committee member Priit Toobal filed an interpellation to Ms Palo, inquiring on what basis the minister picked these very people to the holding company council. The inquirer added that as this company will be channelling the whole of the EU funds money meant to build the railway, it is very important that the operations of the entire enterprise be transparent and controllable.

«The situation is further complicated by the fact that a major SDE supporter has expressed desire via his company Skinest Rail to participate in the construction of Rail Baltic. What is needed is assurance that the interest of Estonian state and somebody’s private interests remain firmly separated,» he concluded.

The soc dem Riigikogu president Eiki Nestor rejected the interpellation by Mr Toobal, substantiating his move by saying that issues of this sort may be a matter of some Riigikogu question time, but with interpellations the law prescribes these must be related to a minister doing her duty in her domain.

«During run-up to elections, there will be the temptation to file interpellations like these, but the law says otherwise,» explained the speaker.

Mr Toobal expanded and improved his original interpellation and filed it anew yesterday morning. He suggested that rejection of an interpellation is the exception, rather. As far as Mr Toobal could remember, it did happen a couple of times during Ene Ergma’s speakership, when Mihhail Stalnuhhin (Centre Party) asked questions of Ms Ergma's comrade-in-party and then interior minister Ken-Marti Vaher (IRL).

Businessman rejects criticism

Asking Oleg Ossinovski about it, he begun by explaining that ever since 2013 his Skinest Rail is building a section of Lithuania’s Rail Baltic which will be completed next summer. The project is financed by EU and Lithuanian Railways.

What about his interest in also building Rail Baltic in Estonia?

«We will continue to participate in all railway building and repair competitions whether or not appreciated by Centre Party, soc dems or journalists,» answered Mr Ossinovski and added that, currently, Skinest Rail is building and repairing dozens of kilometres of railways in several countries of the world.

Mr Toobal’s interpellation to minister Ms Palo was ridiculous, said the businessman. «The question by Mr Toobal reveals his total illiteracy – but, then, what do you expect of someone educated in a village school (Mr Toobal has graduated from Suure-Jaani Gymnasium – edit),» replied Oleg, father of education minister Jevgeni Ossinovski. «It is unimaginable that a railway building competition might somehow be overshadowed by corruption, with dozens of competitors participating from all over Europe.»

As noted by Mr Ossinovski, he knows CEO of Rail Baltic holding company Mr Orav from the time the man was jurist at Estonian Railways, while he does not know the members of the council.

As for a question to minister Ms Palo, it was her ministry’s press department that replied by saying that the right to confirm councils to all state-held enterprises belongs to the minister representing the shareholders. They added that regarding the CEO of said holding company, a public competition was held, organised by economy ministry personnel department and participated by 20 people.

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Political council seats

On May 14^th this year, economy minister Urve Palo appointed Indrek Paal and Raivo Vare as new members of Estonian Railways council. In addition to these, Reform Party Aivar Sõerd and businessman Urmas Sõõrumaa continued therein.

The soc dems stood for Mr Vare who was elected chairman of the council. Mr Paal has even earlier been associated with Oleg Ossinovski. Two weeks ago, business daily Äripäev wrote how Security Police (the Kapo) warned the government against certain businessmen regarding the railway, including Mr Paal. (Towards the end of IRL/Reform coalition, Estonian Railways council was chaired by the IRL guy Taavi Madiberk.)

EVR Cargo, responsible for directing railway cargo flows, is currently managed by Ahto Altjõe. In the former coalition, the seat belonged to Reform Party and Viljar Arakas. In the council, the soc dems currently have Andri Avila and Tarmo Hellat, Reform represented by Peep Aru and Viljar Arakas.