The committee's chair, Anastassia Kovalenko-Kõlvart (Center), has said she suspects corruption, in that Tamm still has connections with the project.

Tamm said he no longer has any connection to the venture, adding the accusations are political in nature.

Greenful plans to upcycle textile waste into construction materials and has taken in €39 million in support from the EU's Just Transition Fund (JTF), which in Estonia's case is focused on Ida-Viru County.

The sum comes despite the maximum amount granted to a single company should be €13 million.

This results from Greenful's aims being spread across three companies: Tekstiili Taaskasutuse OÜ, which will produce construction material from textile waste; Greenful Sillamäe OÜ, which manufactures construction panels; and Greenful SIP OÜ, which makes SIP panels.

All of these companies were established last spring, within a few days of each other, and all successfully applied for JTF money.

The Riigikogu's Anti-Corruption Special Committee summoned Tamm, a former shareholder of Greenful Group, to provide explanations, following an Ärpäev report that the textile waste factory now receiving massive JTF subsidies appears to be linked to Eesti 200 politicians.

The head of the Riigikogu committee, Anastassia Kovalenko-Kõlvart (Centre), said that the three different companies were created and three separate projects submitted precisely to circumvent the €13 million funding cap set by the JTF; the money is channeled via Enterprise Estonia.

She said: "The companies were established at the end of May 2024, while the applications were submitted less than two months later, in July. It seems extremely odd that the Enterprise Estonia foundation is willing to grant millions of euros in subsidies to newly set-up firms. This suggests that basically anyone with an in-depth knowledge of the application process can set up their own company then wait for multimillion-euro subsidies."

The Centre MP also pointed out what she called a strange incident involving the official Estonian business delegation's visit to Saudi Arabia in November 2024, in which both Tamm and his son, Johan Mattias, took part. This was despite the fact that, after last spring, Tamm senior was no longer a shareholder of Greenful Group, plus the company's representative claimed to have no knowledge of his son, who was officially representing Greenful.

Son provided Greenful with 'emotional support' in Saudi

Tarmo Tamm told ERR that Greenful's companies are not connected to him in any way, shape, or form.

"This is a malicious claim, from a competitor," he said. "I am definitely not connected to any of these three companies or any other Greenful company."

As for why his son, who Greenful's CEO Toomas Allikas claimed never to have met, represented Greenful in Saudi Arabia, Tamm explained that this was a matter of emotional support.

"I also told the [anti-corruption] committee that, as a business idea, this is something extremely innovative, and if it succeeds, it would be of great benefit to Estonia. I continue to support the idea. Just because I am not a shareholder does not mean the idea is a bad one. It may sound strange that someone would take the trouble to support an idea without any personal gain, but honestly, there is none," Tamm added.

Tamm said that Greenful could not participate in the business delegation itself, so it was better to have some form of representation, than none at all.

Tamm stressed that since spring last year he has had no connection with Greenful and stated that the success of Estonian companies should be in the interest of all Estonian people.

"This is circular economy, and supporting it is no sin," the Eesti 200 MP said. "If it succeeds, it will be beneficial for Estonia in terms of exports and innovation."
Another Eesti 200 politician, Deputy Mayor of Tallinn Margot Roose, also holds a stake in Greenful.

The two politicians are further linked via a shared ownership of a company called Targad Näod OÜ, which Johann Mattias Tamm is also a shareholder in.

Roose told ERR that she has indeed held a stake in Greenful Group since 2022 and prior to her entering politics, adding it is a negligible amount, of around 0.5 percent of the company.

Roose said: "I have been involved in circular economy and textile waste issues, which is where it all started. Greenful was primarily focused on international operations, but until last year, there was no plan to establish a factory in Estonia as the market is small and it seemed easier and more reasonable to do it elsewhere."

Deputy mayor says she too not involved in Greenful operations.

Roose added that Greenful's partnership with Estonian entrepreneurs, and the plan to build the Sillamäe factory, emerged when she was already serving as Tallinn's deputy mayor, which meant she did not have time to be involved in those ventures.

Roose added that she has never been involved in the company's daily operations, nor is she currently.

"This has been my hobby project as I am concerned about the unresolved problem of textile waste," she said. "I also have a micro-share in plant-based protein company Thorm. I have been wanting to help and support Estonian companies developing the circular economy, or environmental protection products or services. These stakes are all small, more of a passion project than anything else."

Roose added that, to her knowledge, Tarmo Tamm has surrendered his stake in Greenful.

As for OÜ Targad Näod, which was created together with Tamm and his son, the deputy mayor said that the company was established with the aim of developing plant-based protein products, but since the factory due to supply their raw materials never started operations, that plan was abandoned.

"If this is being brought up as evidence that it was part of some grand scheme, then it was a completely separate matter, and the company never started operations," Roose said, adding that she, too, considers the entire issue to be a political maneuver by Kovalenko-Kõlvart.

According to Greenful and its partners' plans, three separate factories will be built in a single building in Sillamäe, Ida-Viru County, at a total cost of approximately €100 million. The company will be getting the €39 million in funding from the JTF, allocated via the EIS but only after expenses have been incurred and approved.

Once the subsidy decision was confirmed, Greenful started seeking investors for its project. Earlier, Greenful's founder Toomas Allikas had told ERR that approximately 80 percent of the required funds would be borrowed from banks, while the remaining equity capital of around €20 million would be contributed by Heiti Hääl, majority owner of Alexela Group.

Tekstiili Taaskasutuse OÜ was established on May 15, 2024, with ownership split between the Netherlands-registered Greenful Holding B.V., Moveprep OÜ (owned by Markus Hääl), and Eesti Keskkonnateenused AS, whose ultimate beneficiaries are Argo Luude, Bruno Tammaru, and Mihkel Õnnis.

Greenful Sillamäe OÜ was founded on May 20, 2024, with ownership also divided among Greenful Holding B.V., Moveprep, and OÜ Hundipea, which belongs to Heiti Hääl.

Greenful Holding B.V. is also among the shareholders of Greenful SIP OÜ, which was established on May 21 last year. Other shareholders include OÜ Kruvi, owned by Tõnu Puidak, and Kasperwiki Laevaomanikud OÜ, which again belongs to Heiti Hääl.

--

Follow ERR News on Facebook and Twitter and never miss an update!