The Riigikogu on Wednesday voted against forming a committee to investigate Prime Minister Kaja Kallas' husband's company's business activities in Russia.
Fifty-two MPs voted to reject the bill and 16 in favor.
Last week, the Riigikogu's Constitutional Committee said it did not support the move, but the Riigikogu still needed to give its view.
After the vote, Tanel Kiik, chairman of the opposition Center Party's faction, said there is a clear need to bring all the details to light which is being prevented by the coalition.
"The Prime Minister and the companies involved have not given exhaustive answers about the shipments to Russia, and it is the firm conviction of the Center Party that a committee of inquiry must be set up to provide the necessary clarity. Regrettably, the coalition government's MPs voted it down, indicating that the Reform Party, Eesti 200 and SDE MPs are giving tacit approval to the actions of the head of government," Kiik said.
He said Kallas had selectively attended Riigikogu committee sessions and her explanations had not helped to clarify the situation.
The investigative committee would have been given the right to summon people and demand necessary data and documents.
"In this case, the summoned person is obliged to appear, give explanations and answer questions," Kiik said. "Failure to appear at the invitation of the committee of inquiry without good cause, failure to provide information or documents, or refusal to provide explanations or answer questions is punishable by a fine of to €1,200."
"According to polls, two-thirds of people continue to support the resignation of Kaja Kallas. Unfortunately, Estonia's foreign and security policy has suffered serious and growing reputational damage," Kiik said.
Editor: Barbara Oja, Helen Wright