Audit of the Estonian Qualification Authority by the SAO

8/13/2003 | 12:00 AM

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TALLINN, 13 August 2003 - The SAO audited the activity of the Estonian Qualification Authority (hereinafter, the Foundation), and observes on the basis of the audit that the functions of the Foundation have been worded too generally, and that state funds have been used for buying services from companies connected to Board members and for payment of unnecessary additional remuneration.

The Estonian Qualification Authority (hereinafter, the Foundation) was established in 2001 with the objective of facilitating the establishment and development of an integrated professional qualifications system, including achieving comparability of the qualifications of Estonian employees and acknowledgement by other countries within this area. The audit revealed that although the state allocates 2.5 million Estonian kroons to the Foundation every year, these sums are not linked to specific activities, and the state has no right to demand that the Foundation would show concrete results for the allocated funds.

In several cases the state interests and personal interest were in conflict. Igor Jakobson, Chairman of the Management Board of the Foundation concluded a usufruct agreement over a car with a private limited company that he owned. The Foundation also purchased a fax machine from the same company. Altogether, ca 53,000 Estonian kroons were paid for these transactions. The same amount of money was involved when Sirje Murre, member of the Management Board contracted a company belonging to her husband and son to help organising seminars.

The SAO also noticed that in each quarter, Igor Jakobson, Chairman of the Management Board of the Foundation was paid 9,000 kroons for successful completion of the work schedule. However, he had failed to take into use the register of professions a year after the term set by the government, although this was specifically the duty of the Chairman of the Management Board. The audit also found that Tiia Randma, member of the Management Board received compensation for termination of contract in the amount of her three-month salary. The Foundation was not obliged to pay compensation at all, and furthermore, it was the Chairman of the Supervisory Board alone who made the decision on the payment of compensation, although the approval of the full Supervisory Board is required for making such decision.

The SAO sent the audit results to the Tallinn Police Prefecture, which decided against starting criminal proceedings on the grounds that no significant material or non-material damage had been caused.

Sven Soiver
Press Representative of State Audit Office
Telephone: (372) 640 0787
GSM: (372) 53 414464
E-mail: [email protected]

  • Posted: 8/13/2003 12:00 AM
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