The Center Party's crisis meeting on Sunday revealed that former secretary general Priit Toobal entered the party into commitments for nearly 700,000 euros, instead of the previously disclosed sum of 450,000 euros. The party has issued two letters of guarantee to OÜ Midfield.
The party's Secretary General Oudekki Loone cheerily told journalists, after what was a prolonged meeting, that the party faces no disaster, and that rather everything is great. The party's financial situation is allegedly better than it has been in the past 12 years, which is why there can be no talk of any guarantee letters bankrupting the Center Party.
Loone said that the party's debts amount to less than 200,000 euros at the moment, half of which, or 109,000 euros, is owed to OÜ Midfield.
Member of the board, MEP Yana Toom told Postimees that there are in fact two letters of guarantee, both issued on the same date in 2014 to OÜ Midfield. One letter enters into commitments for 450,000 euros, and the other for 230,000, for a total of 690,000 euros.
The party's press representative Taavi Pukk said that both letters have been issued to Center Party campaign chief Paavo Pettai's company and are meant to cover arrears for campaign expenses.
Loone refused to shed light on the details of the letters of guarantee yesterday – neither concerning whether the letters have a due date nor conditions under which Midfield could collect. Loone emphasized that OÜ Midfield has been an exemplary partner and the party has a great relationship with the company. Midfield has not demanded the party honor the guarantee letters as of yet.
The board nevertheless decided to put together a working group to look into the letters; among other things to answer the question whether the documents are legally binding.
Member of the board Jaanus Karilaid told ERR that the working group will propose its vision for the secretary general's powers, as well as conditions upon which the party can enter into financial cooperation with entities.
Oudekki Loone affirmed repeatedly that Priit Toobal had every right to sign such guarantees in the name of the party as a member of its board.
«If a party issues such guarantees, the board must have prior knowledge,» Jaanus Karilaid found however. «We will be broadening the circle of people privy to such decisions. So far it has been between the party chairman and secretary general.» Yana Toom said that virtually no one on the board knew of the letters but did not see it as a major problem.
Loone said after the meeting at the party's offices on Toompea Hill that the board was satisfied with explanations given by herself and Toobal, and that no one demanded the party hold an extraordinary party congress.
Jaanus Karilaid told ERR after the meeting that he did not hear exhaustive answers. «We were given explanations; however, they were not final. The explanations could have trickled down from the bureau sooner,» Karilaid said.
Former secretary general Priit Toobal did attend the meeting but avoided journalists and refused to give any comments. Journalists did not see him enter or leave the building. Board members responded to repeated pleas to produce Toobal by saying that Toobal does not have to talk to the media if he does not wish to do so.
Secretary General Oudekki Loone sent out a press release after the meeting in which it is claimed the letter has not placed a guarantee obligation on the party. «We are negotiating with the concerned parties right now,» she added.
«It is very unfortunate that such a tempest in a teacup has been stirred up on the home stretch of the presidential election. There are systematic attempts to paint the Center Party as split, and claim that peculiar things no one knows about are afoot. It clearly harms Mailis Reps' position in the presidential campaign; and I hope our in-house matters will not be discussed via the media in the future,» Loone wrote.
Member of Edgar Savisaar's camp during the previous party congress, Jaanus Karilaid, said before the meeting that should Chairman Edgar Savisaar and Secretary General Oudekki Loone fail to produce exhaustive answers concerning Priit Toobal's letters of guarantee, the party would be headed for «long-awaited changes».