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A member of IRL leadrship Peeter Laurson assesses the financial situation of the party so bad that a company in such condition would already be undergoing bankruptcy proceedings. Kert Karus the secretary-general begs to differ.
IRL cadre claims party is bust
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While approving annual report of IRL for 2015, Mr Laurson added a resolution stating he was not supportive of the party being led to an outcome where its net assets are negative.
«The large negative net assets situation for the second year running spells inability to improve the situation and, actually, a bankruptcy situation,» he noted, adding that the party should show the diligence prescribed by law.
Mr Laurson wrote a resolution like that for the IRL annual report for 2014 already. He says that while it was hoped the party would come out of debt by 2015, it went even deeper into the red.
In 2014, IRL net assets were negative for €347,172; by last year the sum had grown to be €486,830.
At that, short-term liabilities had swelled from €448,457 to €551,643.
Promising to dig deep into the party finances for 2016, Mr Laurson said the party will get out of debt but would it be a commercial enterprise, bankruptcy proceedings would be the order of the day with the party leadership scrutinised by tax board and police.
IRL secretary-general Mr Karus said claims by Mr Laurson were arbitrary and unprofessional. According to him, the party’s election campaign debt stood at €1.1m last April and due to consistency of management €920,000 of that has by now been paid off.
«According to the plan laid down last year, the debt will be liquidated this fall and the party can face elections in a good financial condition,» he said, adding that since last summer the income of the party has exceeded costs every month – this first half year, for instance, at €460,000 and €155,000 respectively.
Mr Karus said parties cannot be compared to commercial enterprises or other non-profit associations being under a special law with separate regulations imposed regarding annual reports.