Centre Party provided answers regarding movement of cash

Photo: Peeter Langovits

Centre Party adhered to precept by supervisory committee for financing of political parties (ERJK) and provided answers regarding the extraordinarily large cash remainder exceeding €174,000 as shown in 2014 report. 

As early as beginning of September, the committee addressed Centre as the residue was suspiciously big. While at end of 2013 the party’s cash position was slightly above €59,000, by the end of last year it had increased to €174,427 which amounted to 12 percent of the party’s balance sheet total. Meanwhile, only €41,000 sat on the party’s bank accounts. Thereat, the sworn auditor who checked the report pointed out that the party’s current obligations (€317,529) exceeded current assets (€223,353).

Also: as compared to other parties, Centre possessed an extraordinary amount of cash: Reform declared to have €266, Soc Dems €354, IRL €3,532 and EKRE €1,030.

Centre substantiated the increase by cash reserves created to guarantee liquidity of the party. «The reserve was created from allocations to Centre Party of Estonia from state budget pursuant to Political Parties Act section 127, and were drawn out from the party’s account at Danske Bank A/S Estonian branch as also proven by bank statements,» declared the party, adding it had also forwarded to the committee all documents required.

The committee, however, was not satisfied and issued the party a precept. «We would still want to have the accounting data showing the descriptions of these cash movements on the basis of which the remainder was created at end of last year,» noted its chairman Ardo Ojasalu.

Among other things, the committee did not quite understand, said Mr Ojasalu, where exactly Centre was keeping the cash declared. While the annual report said the money ought to have been in the party treasury, accounting said it had been handed out to accountable individuals. On top of that, said Mr Ojasalu, it was not known what the cash was used for and whether or how the cash position had changed by now. «We do not know if they still have the cash, or if it has been used, or how is it with the money after all – is it still with an accountable individual, or someplace else,» he noted.

Centre fulfilled precept by the committee yesterday. As for the documents sent by the party, the committee will review these next week.