Centre Party offer of reimbursement of election donations not enough for Nova creditors

Court case possible if no settlement is reached

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The reimbursement offered by the Centre Party for money received by the party’s fund-raising organisation from Nova Real Estate Development was not enough for the executors of the bankrupt estate of Nova.
      If the party does not improve its offer by early next week, the executors threaten to bring the matter to court.
      The creditors want the Centre Party to pay back EUR 100,800. Receiver Jukka-Pekka Kyläkoski says that the party offered “considerably” less. The main creditors are the work pension company Varma and the tax authorities, who are owed a total fo EUR 1.7 million by the bankrupt company.
     
Nova Real Estate Development bought EUR 100,800 worth of tickets to Centre Party seminars before the Parliamentary elections of 2007. Charging for admission to seminars has become a popular way for political parties to raise funds for election campaigns. The tickets were sold by Menestyvä Suomi, a now-defunct organisation set up to raise campaign funds for the Centre Party.
      Centre Party Secretary Jarmo Korhonen promised on Wednesday that an agreement would be reached soon.
      “The Centre Party did not get a single euro; the support organisation did. This is a matter of principle, and of law”, Korhonen emphasised.
     
Legal experts interviewed by Helsingin Sanomat say that it might be difficult to call the Centre Party to account for activities of Menestyvä Suomi. “It is such a significant case, so let’s get a court decision”, Kyläkoski said.
      The bankrupt estate of another company that donated to the Centre Party, the Nova Group, is calling for the reimbursement of EUR 74,000 from the Centre Party. Negotiations are underway over that demand as well.
      Nova Group bought tickets for two seminars organised in 2007.
     
The Centre Party Parliamentary group discussed the possible reimbursement of Nova donations, but no common decision was reached.
      Nova Group’s creditors are calling for the reimbursement from Centre Party candidates who received donations from the fund-raising organisation Kehittyvien Maakuntien Suomi, in which Nova was a major contributor. KMS provided funding for more than 50 candidates, mostly representing the Centre Party and the National Coalition Party.
      The receivers of Nova Group now want about 36 per cent of the money back.
     
Centre Party Parliamentary group leader Timo Kalli says that the situation remains open: some MPs have paid back the money, while others intend to.
      Pekka Kokko, the receiver of the estate, has not sent letters demanding the money - “yet”.
      The estate has received about EUR 100,000 back from politicians and support organisations.
     
The National Coalition Party has paid back a total of EUR 81,520 on behalf of its MPs and its candidates.
      Also returning money have been the support organisation of Marja Tiura (Nat. Coalition Party), Tiura herself, Sauli Niinistö (Nat. Coalition Party), the support organisation of Päivi Lipponen (SDP), Juha Mieto (Centre), Seppo Kääriäinen (Centre), the support organisation of Paula Sihto, Oiva Kaltiokumpu (Centre) and Hannu Huskonen (Centre).
      The support organisation of MP Ilkka Kanerva is reimbursing EUR 13,000 that it received from Nova Real Estate Development for Kanerva’s 60th birthday celebrations. The company donated EUR 17,000 for the cause in January last year.
      The creditors’ meeting approved a discount of EUR 4,000, because a donation of that size can still be accepted as a gift, says receiver Kyläkoski.


Previously in HS International Edition:
  Centre Party to pay back all Nova donations (18.9.2009)
  National Coalition Party and candidates to return donations from Nova Group (17.9.2009)
  Records of Nova Group bankruptcy estate show reckless spending (10.9.2009)
  Centre Party silent about major contributor (12.6.2009)

See also:
  Election funding row sparks serious discussion of dissolution of Parliament (24.9.2009)

Helsingin Sanomat