Kõlvart: Million-euro fine would not prove existential blow to Center Party
Should the opposition Center Party ultimately be found guilty of influence peddling and be hit with a million-euro fine payable to state coffers, this would be a painful blow, but would not jeopardize the party's continued existence, its chair, Mihhail Kõlvart, said Tuesday morning.
Appearing on ETV morning show "Terevisioon," Mihhail Kõlvart, who is also Tallinn's mayor, said a recent second-tier district court decision had been "unexpected."
The ruling overturned an earlier county court ruling in finding former Center Party secretary general Mihhail Korb guilty of influence peddling in respect of the so-called Porto Franco case.
The court also found businessman Hillar Teder, and the Center Party itself, guilty of the same offense, which all revolves around a major real estate project in the Old City Harbor area of Tallinn.
Kõlvart said his party will appeal the circuit court's decision at the Supreme Court, as clarity in this matter is needed not just for Center, but in broader terms.
Final conclusions can be drawn once it is determined whether the Supreme Court will take up the case or not. If the Supreme Court declines to hear the appeal, the circuit court ruling will stand.
Kõlvart said: "It would not be right to speculate today over what the Supreme Court's decision might be. We certainly cannot influence that decision, nor speculate on the matter."
"However, of course, the leadership of a large organization must consider different scenarios. The Center Party has faced difficulties before, and we have to go through this phase as well, and be prepared for a more difficult period," the Center chair went on.
The circuit court fined the Center Party a million euros, raising questions about the party's potential bankruptcy if the court decision should become binding.
Kõlvart said on this that the Center Party's annual budget is around one million euros too. "Of course, this would be a painful blow, but certainly not an existential one. We have to take this into account, though as of today we do not have the Supreme Court's decision, while the circuit court's decision has not entered force."
When the Porto Franco case came to light, in January 2021, it prompted the resignation of Jüri Ratas as prime minister, and the collapse of the Center-EKRE-Isamaa coalition.
While Ratas has since joined Isamaa, Kõlvart was mayor both then and now.
He said he does not hold any culpability over the episode, however, noting that from the outset of the court processes, both the prosecution and the Internal Security Police (ISS) clearly indicated that city officials, including the capital's political leadership, had not violated any laws.
"This means my conduct was correct," Kõlvart told "Terevisioon."
"This discussion is not currently a part of the court proceedings. City officials have been witnesses only, and there have been no accusations against the city system," the mayor went on.
The circuit court ruled on Monday that it has been proven that businessman Hillar Teder offered assets, via Mihhail Korb, to the Center Party, in exchange for both Korb and the Center Party using their influence over Mayor Kõlvart in a way that would alow the developer of the Porto Franco real estate project to get an unjustified and unequal advantage from Tallinn City Government in applying for an easement with the Tallinn city government.
The Center Party was fined well over €800,000 several years ago in relation to campaign work done for it by a private sector firm and which was adjudged to constitute an illicit political donation. The party was able to amass the funds from a variety of sources, including from donations from rank-and-file party members, but the financial hole it left affected Center's ability to campaign ahead of the March 2023 Riigikogu election.
While the party won 16 seats in March 2023, this was 10 down on its tally at the previous general election four years earlier.
A wave of defections in the aftermath of Mayor Kõlvart, who is more closely identified with the Russian wing of the party, being elected leader last September has left Center with just six MPs at the Riigikogu now.
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Editor: Andrew Whyte, Mrijam Mäekivi
Source: 'Terevisioon,' interviewere Reimo Sildvee.