Estonian Business Agency to Repay €1.33 Million Following EU Funding Audit

Estonia’s Ministry of Economic Affairs and Communications has ordered the Estonian Business and Innovation Agency (EIS) to repay €1.33 million in EU funding associated with a 2023 procurement involving the Estonian Chamber of Commerce and Industry.

The case concerns Mait Palts, the chamber’s director, who was also a member of EIS’s supervisory board when the chamber secured contracts to provide services supporting Estonian companies in foreign markets.

A Ministry of Finance audit raised conflict-of-interest concerns. EIS maintains that an actual conflict of interest was not established, while the chamber argues that the arrangement was a service contract rather than a grant.

EIS has decided not to challenge the repayment order and plans to cover the amount through savings in its operations.