Along with the decision to end the criminal proceedings against MES board members Raul Rosenberg and Madis Reinup, the prosecution also annulled a court order that had previously removed both of them from office.

Lead prosecutor Sirle Melk stated that MES's procedural deficiencies did not justify criminal liability, as intentional criminal acts would be required, while court rulings invalidated breaches related to loans to three companies by narrowing the definition of related parties.

In 2021, Rosenberg and Reinup were arrested for breach of trust over 42 loans totaling €23.15 million, with the prosecutor's office filing an indictment in 2023 for crimes during the pandemic, but the Supreme Court returned the case due to legal deficiencies.

Melk said that the MES loan decisions were made by both Reinup and Rosenberg, acknowledging organizational deficiencies but stressing that there was no financial loss to MES, as the loans generated interest; the urgency of the crisis left little time to develop proper due processes, and judicial changes unrelated to MES altered case law on limitation periods and embezzlement, also ultimately invalidated the prosecutor's initial assumptions, Melk said.

MES aims to support and stimulate entrepreneurship in rural Estonia by creating better opportunities for access to capital, and by increasing the competitiveness of rural entrepreneurship, the organization says on its website.

--

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