Deal to scrap army tanks leads to bribery trial
Corrupt practices permitted wrong company to win bidding contest, State Prosecutor charges
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The deal to scrap surplus armoured vehicles belonging to the Finnish Defence Forces will lead to a corruption trial at the Tampere District Court next year.
State Prosecutor Jorma Äijälä announced on Wednesday that he was bringing criminal charges against five individuals.
Two of the accused worked in directorial positions with the Defence Forces. The remaining three were employed by Stena Metall, a company specialised in recycling metals, paper, electronics, hazardous waste and chemicals.
All the suspects have denied any wrongdoing.
The case relates to a bidding contest from three years ago, in which the Defence Forces were seeking a buyer to scrap and recycle 360 obsolete armoured vehicles between 2007-2009.
According to the State Prosecutor, Stena Metall triumphed in the bidding contest through illegitimate means.
According to the prosecution, because of the illegal set-up, the opposing bidding contestant, the Kuusankoski company, suffered EUR 350,000 in damages.
On the Defence Forces’ side the gravest criminal charges will be filed against a then sales manager, who is no longer employed by the military.
According to the indictment, the sales manager received bribes from representatives of Stena Metall and subsequently misled those deciding on the bidding contest into thinking that Stena Metall’s offer was superior to the one presented by Kuusankoski.
The State Prosecutor calls for the sales manager to be penalised for acceptance of bribery, aggravated fraud, aggravated misuse of official position, and infringement of official secrets.
According to Äijälä the bribery charge relates to having been entertained.
The police suspected that the manager in question would also have received EUR 6,000 in cold hard cash.
When questioned, a Stena Metall managerial level employee admitted having handed this sum of money in a brown envelope to the sales manager at the request by one of the employee’s superiors.
The State Prosecutor, however, considered the evidence insufficient with regard to the EUR 6,000 payola.
Another Defence Forces director will be charged for negligence in duty, or, in practice, for being careless.
The director trusted the false price comparison produced by the sales manager, based on which he then prepared a proposal briefing.
The proposal briefing advanced in the Defence Forces hierarchy upwards without anyone reviewing the sales manager’s figures. The final decision on the scrap deal was made in accordance with the proposal briefing by the then Minister of Defence Seppo Kääriäinen (Centre Party).
Stena Metall representatives will be charged for aggravated fraud, misuse of business secrets, and giving a bribe.
The police also suspected the firm’s managing director and deputy managing director of wrongdoings, but the prosecutor found no charges to answer.
State Prosecutor Jorma Äijälä announced on Wednesday that he was bringing criminal charges against five individuals.
Two of the accused worked in directorial positions with the Defence Forces. The remaining three were employed by Stena Metall, a company specialised in recycling metals, paper, electronics, hazardous waste and chemicals.
All the suspects have denied any wrongdoing.
The case relates to a bidding contest from three years ago, in which the Defence Forces were seeking a buyer to scrap and recycle 360 obsolete armoured vehicles between 2007-2009.
According to the State Prosecutor, Stena Metall triumphed in the bidding contest through illegitimate means.
According to the prosecution, because of the illegal set-up, the opposing bidding contestant, the Kuusankoski company, suffered EUR 350,000 in damages.
On the Defence Forces’ side the gravest criminal charges will be filed against a then sales manager, who is no longer employed by the military.
According to the indictment, the sales manager received bribes from representatives of Stena Metall and subsequently misled those deciding on the bidding contest into thinking that Stena Metall’s offer was superior to the one presented by Kuusankoski.
The State Prosecutor calls for the sales manager to be penalised for acceptance of bribery, aggravated fraud, aggravated misuse of official position, and infringement of official secrets.
According to Äijälä the bribery charge relates to having been entertained.
The police suspected that the manager in question would also have received EUR 6,000 in cold hard cash.
When questioned, a Stena Metall managerial level employee admitted having handed this sum of money in a brown envelope to the sales manager at the request by one of the employee’s superiors.
The State Prosecutor, however, considered the evidence insufficient with regard to the EUR 6,000 payola.
Another Defence Forces director will be charged for negligence in duty, or, in practice, for being careless.
The director trusted the false price comparison produced by the sales manager, based on which he then prepared a proposal briefing.
The proposal briefing advanced in the Defence Forces hierarchy upwards without anyone reviewing the sales manager’s figures. The final decision on the scrap deal was made in accordance with the proposal briefing by the then Minister of Defence Seppo Kääriäinen (Centre Party).
Stena Metall representatives will be charged for aggravated fraud, misuse of business secrets, and giving a bribe.
The police also suspected the firm’s managing director and deputy managing director of wrongdoings, but the prosecutor found no charges to answer.
Helsingin Sanomat