Finland’s central criminal police to investigate Patria deals in Slovenia and Egypt

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Finland’s National Bureau of Investigation (NBI) announced on Wednesday that they have launched investigations into suspected crimes associated with international deals made by the Finnish state-owned defence equipment manufacturer, the Patria Group.
     
Patria is suspected of bribery in connection with the company’s vehicle contract in Slovenia and an artillery gun contract in Egypt.
      Moreover, Patria has itself requested an investigation into whether information related to the Egyptian howitzer project has been published in a manner violating company confidentiality.
      Regarding the tender process in Slovenia, the police arrested two Patria employees on Tuesday, while conducting searches at Patria’s premises in Vammala, Hämeenlinna, and Tampere.
     
In December 2006, the Slovenian Ministry of Defence signed agreements with Patria and the Slovenian cooperation partner Rotis covering AMV 8x8 vehicles as well as Patria Nemo 120mm mortars for the Slovenian Army.
      Soon allegations of bribery started escalating in Slovenia, claiming also that the exact content of the EUR 280 million contract was kept secret, as the purchased vehicles are not in accordance with Slovenia’s original request for tenders.
     
Jorma Wiitakorpi, the CEO and President of Patria, admits that the contents of the original tender changed in the course of the negotiations, while insisting that the vehicles Slovenia is to receive are in accordance with the final purchasing contract.
      In Slovenia a parliamentary commission of inquiry was established in March 2007 to investigate the tender process relating to the sales contract concluded between Patria Vehicles Oy and the State of Slovenia.
      An additional indication of alleged wrongdoing is claimed to be the fact that the representative of Patria in Slovenia is Andrej Mladenov, the husband of Finland’s Ambassador to Slovenia Birgitta Stenius-Mladenov.
      Wiitakorpi says that the possible legal incapacity of Mladenov was examined by the Ministry for Foreign Affairs of Finland prior to his nomination.
     
The investigations into Patria’s Egypt project were launched after Helsingin Sanomat reported in March 2007 that retired Lt. Col. Erkki Heinilä, who had acted as Patria’s military adviser for the duration of the Egypt project, had called for investigations into Patria’s trading practices in Egypt.
      Heinilä reported that there were problems with the weapons, while the client was kept in the dark about them.
      According to Heinilä, there was reason to suspect Patria of bribery in connection with the deal.
     
Since March 2007, Heinilä has been interrogated both as a witness to suspected bribery and as a suspect of violating company confidentiality.
      Patria CEO Wiitakorpi denies all allegations of unethical business conduct in both projects.


Previously in HS International Edition:
  Adviser accuses Patria of questionable selling tactics (1.3.2007)

Links:
  Patria press release (14.5.2008)

Helsingin Sanomat