NEWS ANALYSIS: What the campaign finance mess is all about
By Hanna Kaarto and Antero Mukka
Why is campaign financing important?
Democracy is implemented in elections in which voters choose their representatives for municipal councils, the Parliament, and other decision-making bodies. Citizens have the right to get information on the backgrounds of their candidates, for instance, who finances them. The financiers, which include representatives of commerce, industry, or the labour union movement, have political interests in issues such as urban planning and taxation policy.
How did the current controversy over campaign funding originate?
Centre Party Parliamentary group chairman Timo Kalli said on a current affairs television programme on May 7th, 2008 that he would not submit a mandatory disclosure of his campaign donors, because there is no punishment for not doing so.
What happened then?
It came out that a large number of Members of Parliament acted as Kalli had. The big spenders on the Parliamentary elections of 2007 have come out only after journalists who have investigated the matter have succeeded in getting their hands on information about the donors.
What do we know about the donors?
About a year ago it came out that the Kehittyvien Maakuntien Suomi (KMS) association had helped finance the campaigns of several Parliamentary candidates. KMS received donations from businessmen, such as Ideapark entrepreneur Toivo Sukari and Tokmanni’s Kyösti Kakkonen. The real estate development company Nova Group was a major background player in KMS.
KMS supported numerous candidates, most of whom were for the Centre Party. Also getting funding were candidates of the National Coalition Party, the Social Democratic Party, the Swedish People’s Party and the Green League. Other associations specifically set up for the purpose also distributed political donations.
It came out this summer that the TT foundation, with links with the Confederation of Finnish Industry (EK) has also helped candidates of several parties.
What do we know about the goals of the contributors?
One thing is that they want to make the construction of new shopping locations as easy as possible. Nova Group CEO Tapani Yli-Saunamäki has written about these goals openly in the company’s publication.
Arto Merisalo, a major owner of Nova Group, and CEO of its subsidiary Nova Kiinteistökehitys, said in an interview in Helsingin Sanomat on June 16th, 2009 that the goal of the financiers was to improve the chances of Prime Minister Matti Vanhanen (Centre) to win a second term in office. The businessmen wanted Finland to get “a government that reflects the values of entrepreneurs, business, and the bourgeoisie”.
How close were relations between the financiers and politicians?
As the election funding controversy has moved ahead, it has come out that KMS was set up in the offices of the Centre Party. The financiers of KMS met Prime Minister Vanhanen and the Centre Party secretary at Kesäranta, the official residence of the Prime Minister, on January 22nd, 2007. Also taking part in the meeting was Markku Kauppinen, CEO of the Local Government Pensions Institution (KEVA).
Now it has come out that Kauppinen has recommended Parliamentary candidates he considers worthy of support. KEVA has invested money in Nova real estate projects, which means that KEVA money has flowed to political parties via Nova. KEVA exists to provide pensions for municipal employees.
Are there signs that the wishes of the financiers are listened to?
Vanhanen defended the planned Ideapark mall for Vihti in his blog already more than a year ago. Minister of Economic Affairs Mauri Pekkarinen (Centre Party) has stated his support for the Pieksämäki Ideapark project. Both ministers deny that the matter would have anything to do with election campaign financing.
An e-mail has come to light, in which entrepreneurs praise the support that they have received for their interpretation of land use and construction legislation. The issue is, how easily new business premises can be built outside built-up areas.
Earlier in the year there was controversy over assertions that the National Coalition Party implements the wishes of the Confederation of Finnish Industry (EK), while the TT Foundation, with close ties to EK has helped the party’s election campaigns financially. The National Coalition Party pushed through the lifting of the Social insurance Institution contribution from employers without the support of its government partner, the Centre Party. The matter had long been a goal of EK.
Is this corruption?
Corruption means the misuse of a position of power for the achievement of personal gain. If a politician makes decisions to please someone who provides money, it can be called corruption on a moral level.
Keeping the amount of money received a secret, strange lapses of politicians’ memory and ignorance give reason to suspect that there may be something questionable in the cash flow. Awkward revelations have been coming out on a daily basis in the most intense weeks of the election finance controversy.
Last year Transparency International, which keeps tabs on corruption around the world, dropped Finland’s top ranking of the least corrupt country in the world down to fifth place.
More on this subject:
 Four MPs tenants in buildings owned by pension company mired in election finance furore
KEVA asks for investigation of its own board
COMMENTARY: Small country, small explanations
Previously in HS International Edition:
Prime Minister denies accusations of lying over campaign finance issue (17.6.2009)
Vanhanen expects detailed report from Centre Party secretary on 2007 election funding (15.6.2009)
CEO of Nova Group claims Centre supports real estate company in zoning issue (30.5.2008)
Prime Minister hounded by accusations of lying (18.6.2009)
HANNA KAARTO AND ANTERO MUKKA / Helsingin Sanomat
hanna.kaarto@hs.fi, antero.mukka@hs.fi
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