Center leader: Pattern of failures in state-owned companies needs fixing
Recent issues in Estonia's state-owned enterprises reveal a troubling pattern rather than isolated failures, Center Party chair Mihhail Kõlvart said.
Speaking at a party congress, Kõlvart said the challenges faced by such firms must not be normalized to the extent that they no longer take anyone by surprise.
He said: "Every failure causes damage, and it is only logical that someone should take responsibility for such harm."
"At the very least, lessons should be learned from these failures to prevent future occurrences," the Center leader added.
Kõlvart stressed that the strategic operations carried out by Eesti Energia are of the utmost importance, as electricity represents a fundamental need for residents, businesses, and national defense.
"Eesti Energia's primary obligation is to ensure high-quality electricity at reasonable prices, enabling residents to manage their lives and businesses to produce competitive goods," he said.
However, Kõlvart criticized the state as an owner for imposing additional obligations on energy generator Eesti Energia that undermine Estonia's national interests.
Turning to airline Nordica, which recently declared itself bankrupt, Kõlvart remarked that the same mistakes made with Estonian Air were repeated.
"Nordica lacked a strategic purpose as a national airline, especially since it did not operate flights from Estonia for the past five years," he said.
Government oversight was insufficient, and many documents related to Nordica's operations were classified, Kõlvart argued.
"Nordica's problems developed over many years. Instead of privatizing or reforming the company, money was poured into it, with the hope that a failed approach would eventually succeed," the Center Party leader went on.
Rail Baltica also exemplifies poor state governance, he added.
"What guarantees do we have that Rail Baltica will function effectively and not become a financial black hole for taxpayers?" he inquired.
Construction costs have repeatedly risen, and there is no certainty about the project's completion or its cross-border connectivity, Kõlvart pointed out.
"Coalition representatives refuse to establish an investigative committee to clarify the circumstances."
Kõlvart also raised concerns about the proposed offshore wind parks.
"The state seeks an operator to manage our marine areas while assuming business risks and guaranteeing minimum electricity prices with taxpayer money," Kõlvart warned.
"This involves billions of euros, with the state assuming responsibility for years without ensuring supply security in return," he said.
"This approach shows no lessons have been learned from past failures," Kõlvart concluded.
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Editor: Andrew Whyte, Marko Tooming