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Anastassia Kovalenko-Kõlvart: RMK could avoid layoffs if economic activity was based on state interests

The National Forest Management Center’s plan to lay off around 80 people is a harsh consequence of previous incompetent management decisions, said Anastassia Kovalenko-Kõlvart, chair of the Riigikogu’s special anti-corruption committee.

“The explanation of the head of RMK, that the main reason for the layoffs is the owner’s expectation of higher shares than before and additional taxes, is not inconceivable when analyzing the activity the company with the state,” he said. Anastasia Kovalenko-Kõlvart. “The National Audit Office has again drawn attention to the fact that RMK has been selling timber material cheaper than the market price with long-term contracts concluded in a non-disclosure manner. As a result of prices, wood was sold to a relatively narrow circle of people at a price agreed upon during a closed negotiation, which was sometimes unclear and compliance with the legislation was unquestionable. The agreed deal could be up to 30 percent cheaper than the market price. “

According to Anastassia Kovalenko-Kõlvart, the forest is one of the most important natural resources in Estonia, and it is doubtful that RMK, which owns up to 45 percent of our forests, managed to sell it based on the interests of the state.

“The cost of growing the forest was not taken into account in the pricing, ie the grown forest was treated as a free resource. The fixed costs related to RMK’s core activities were also not taken into account, and there were even deficiencies in the sales statement,” said the representative of the Central Party. “Despite job losses and the best work, it would appropriate to ask whether the management of the state’s forest has been done in a way that is prudent, appropriate, economical and prudent, as required by the State Funds Act. Guided by the principle of maximizing the benefits and avoiding the harm that the country may receive from these activities or transactions. It is also necessary to find out if anyone involved in the transaction from the RMK side has received a personal benefit.”

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