YLE claims: PM Vanhanen received building materials from construction company free of charge

Vanhanen denies allegations of any wrongdoing; urges YLE to provide evidence

Matti Vanhanen in 2002.

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On its weekly reportage programme Silminnäkijä (”Eye Witness”), the Finnish Broadcasting Company YLE claimed on Monday evening that Prime Minister Matti Vanhanen (Centre) had received building materials free of charge from a construction company that had built apartment buildings for Nuorisosäätiö (”Youth Foundation”).
      Nuorisosäätiö is a youth housing foundation that donated money for Vanhanen’s presidential election campaign in 2006.
      According to the programme made by Ari Korvola, the invoice for the materials was included in the expenses of Vanhala’s house in Nurmijärvi, built during the 1990s.
     
The materials came from a company which was not named. The programme claimed that the company wanted to secure further contracts with Nuorisosäätiö.
      Helsingin Sanomat was unable to contact Matti Vanhanen last night.
      The reporters had earlier received an anonymous statement, indicating that the Vanhanens had not paid all building costs. It took YLE one year to try to confirm the information.
     
The programme reported further that valid evidence was eventually found when it turned out that a batch of rather expensive building materials that was delivered to the Vanhanens was paid for by the building company that had a contract with Nuorisosäätiö.
      The programme contained some heavy accusations against the Centre Party. The youth housing foundation which has close ties with the Centre Party was said to hold its meetings regularly in Parliament, as if Nuorisosäätiö were a part of the highest legislature.
      At one of the meetings, Jorma Heikkinen, the former managing director of Nuorisosäätiö, Matti Vanhanen, and Jukka Vihriälä, the former Chairman of the Board of the Finnish Slot Machine Association (RAY), and a former Centre Party MP, dictated to a RAY official a decision on the additional support.
      Later on Vihriälä sold some paintings to the foundation, while Vanhanen received election funding. Both sums amounted to more than EUR 20,000.
     
The foundation was considered to speculate in plots of land with construction companies, while pursuing shady cooperation with the Housing Finance and Development Centre of Finland (ARA), an agency set up to implement social housing policy. ARA’s main task is to finance state-subsidised rental housing production.
     
It was also reported that the youth housing foundation has violated the Finnish acquisition legislation.
      The reporter also quoted an expert who had said that the construction of Vanhanen’s house in Nurmijärvi with his own hands would have taken 2.5 years. It was not possible that he himself would have been able to do that, even though he is known as a DIY enthusiast.
     
RAY has been giving support worth approximately EUR 40 million to Nuorisosäätiö since the 1960s.
      Silminnäkijä was also surprised that there was a surplus of EUR 760,000 at the youth housing foundation during the period from 2005 to 2008, while RAY’s support to the organisation was almost one million euros at the same time.
     
The programme further reported that the foundation has a seamless alliance with certain real estate developers.
      In this connection the prices for properties have sometimes as much as quadrupled.
      The construction business of the youth housing foundation has been regarded as ingenious, as the actual financiers are ARA and the tenants.
     
In a short but highly-charged press briefing on Tuesday morning, Vanhanen roundly dismissed the claims and expressed astonishment that the journalists would imagine he would have endangered his then still emerging political career (in the mid-1990s) for a pile of birch wood, which he claims was for a bookcase. Vanhanen also stated that a delivery and invoicing address had been given for the goods in the normal way.
     
Vanhanen urged YLE to come up with the evidence to support its claims, and refuted the suggestion made in the programme that he had ever claimed he built the house himself.
      "I would like to know what sort of expensive item the programme is referring to. In the public interest I shall look forward to seeing what paper YLE puts on the table", stated Vanhanen.
      According to the late-edition tabloid Ilta-Sanomat, YLE has a sworn statement from an anonymous source.
      The newspaper believes the source has signed an agreement that includes a clause that he or she would provide evidence in court if necessary.
     
In a comment to YLE News on Tuesday afternoon, the Head of YLE's Current Affairs Programming Jyrki Richt reported that the questionable goods item referred to in the programme was conspicuously larger than the birch panels required for making Vanhanen's bookshelf.
     
In a further development on Tuesday, the National Bureau of Investigation, Finland's central criminal police arm, announced it would be examining the claims made in Monday's programme.
      The news was first reported by the Nelonen TV channel, and the Finnish News Agency STT also confirmed the information.


Previously in HS International Edition:
  Vanhanen refuses to accept sole responsibility for election funding row (28.9.2009)
  RAY Chairman Vihriälä resigns in midst of election funding furore (23.9.2009)

Links:
  The Housing Finance and Development Centre of Finland (ARA)
  Nuorisosäätiö

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