Läänemets has addressed media reports about cash payments for party services.

The controversy arose after Õhtuleht reported that Läänemets paid €5,000 in cash for editing services in 2021, sparking questions about whether this was effectively "brown paper envelope money."

The issue was raised by former SDE member Egle Heinsar, now running for Isamaa in next month's local elections. Heinsar told Õhtuleht that the payment was made to her by Läänemets before he became party leader.

According to Heinsar, they initially agreed on a payment of €1,000 net for part-time work done for the party. "The payment was supposed to come from sponsors, whose identities or companies were not revealed to me," Heinsar said. However, as the work began, she claimed the arrangement "transformed into working under the table" as the job's start date drew closer.

Heinsar stated that Läänemets himself proposed the cash payment. "At that time, he was in a position of power over me, as regional leader. For this reason, I was accommodating, thinking that once we got the website up and running, the situation would change and we would formalize the employment relationship. But that never happened," Heinsar said.

Over several months, Heinsar received a total of €5,000 from October 2021 to February 2022. Of this, €4,000 was delivered by Läänemets in a discreet manner. "He brought it tucked between a box of scented candles or a box of chocolates, to the home mailbox," Heinsar added.

Läänemets: I made payments as a private individual

In response, Läänemets issued a written statement Thursday evening addressing the claims. "First of all, I want to stress that indeed I worked closely with Egle, for a couple of years both at the Järva County and party level. She was an active party member and made an important contribution," Läänemets said. He also stated that all official payments for party work were done through invoices from Heinsar's company.

However, regarding the cash payments, Läänemets said: "I also, as a private individual, asked Egle for help when I decided to run as party chair. Over a few months, I needed a fair bit of help with various texts, but clearly this was a service I did not wish to pay for through expense allowances."

Läänemets reiterated that he paid for the services "as a private individual" and that "I never needed the invoices, as I had no use for them." He also expressed regret for the confusion caused, stating, "If it genuinely turns out that there are any outstanding debts left for the services I purchased, I will of course pay them."

Heinsar: Läänemets 'misused Riigikogu expenses'

Heinsar stated in a comment sent to ERR Friday morning that Läänemets hjad also misused Riigikogu expense allowances.

Läänemets had recruited her to work as a contractor and that an invoice from summer 2022 was not for services by her company, Keeletunne OÜ.

"The Keeletunne invoice from July 2022 was fictitious; its basis was not a service from February to July, but it was to cover a previous salary debt. I draw attention to the fact that Lauri Läänemets has misused parliament's expense allowances, submitting expenses there which are not true," Heinsar said.

Heinsar stated that they agreed on €1,000 net as remuneration without a formal service contract, while the cash was delivered to a private individual's mailbox in Järva County, despite the company being registered in Tartu County.

The language editor confirmed that Keeletunne OÜ only accepts payments via invoice and bank transfer, stressing that she hasn't provided any services to Läänemets as a private individual since February 2022. Heinsar said she has consulted the Tax and Customs Board, paying retroactive income tax as advised.

Läänemets became SDE leader in February 2022 and served as interior minister from July of that year until March 2023, when SDE left office.

Editor's note: This piece was updated to include comment from Heinsar.

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