EC Freezes Enterprise Estonia Funding ({{commentsTotal}})

Source: Photo: Postimees/Scanpix

The European Commission cut 30 million euros of funding to Enterprise Estonia after auditors found three projects to be undeserving of EU taxpayer money.

"Since we agree with the results of the audit that the spending was not eligible, and since the auditors lacked important information, the decision to temporarily cancel funding as a preventive tool is understandable," said Enterprise Estonia Chairman Ülari Alamets.

The agency's communications coordinator, Merilin Pärli, told that the three projects will not yet be made public.

Last November, the European Court of Auditors checked eight Enterprise Estonia projects that were being financed by the European Regional Development Fund. Three projects were noted for potentially being ineligible, and the efficiency of procedures and assessment methods used by Enterprise Estonia were also questioned, the agency reported.

Enterprise Estonia representatives said they now have two months to present their case, and that then the auditors' ruling may change. The agency said it would cover the funding gap from other parts of their budget.

Alamets said the incident will not affect Enterprise Estonia clients. "We will continue to accept new applications and administering disbursements in the usual rhythm."


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