Tallinn investigating heads of markets for embezzlement and fraud
Tallinn's internal audit found issues with cash handling and permit issuance at city markets, where some managers pocketed money paid by vendors.
Mayor Jevgeni Ossinovski (Social Democratic Party) said in a press release that "yet another Center Party hotbed of corruption has been dismantled."
"Tallinn's internal audit found that individuals managing the city's markets systematically abused their positions and pocketed part of the cash paid by vendors. The exact amount of damages will be determined during the proceedings, but since the misconduct went on for years, it is likely to amount to tens of thousands of euros," said the mayor.
"Tallinna Turud (Tallinn Markets) was a textbook example of a Center Party-run institution. It was led from 2016 until this year by Center Party member Kersti Otteson, who was dismissed from her position. The illegal practice itself was straightforward: vendors were charged for five days of selling, but only three were recorded in the city's information system. The money for the remaining two days never reached the city's coffers. Two of Otteson's subordinates, who have since been dismissed, were responsible for altering the sales permits. The practice continued even after Otteson's departure, which shows just how deeply this culture of misconduct had taken root," Ossinovski said.
He added that the effectiveness of Tallinn's internal audit unit demonstrates the city's ability to root out long-standing corruption.
"Last year, the new city government decided to dissolve Tallinna Turud as a separate entity and transfer management of the markets to the municipal company Tallinna Arendused (Tallinn Developments). This transition allowed for staff changes, which in turn helped internal auditors uncover the violations," the mayor said.
Rainer Aavik, a board member of AS Tallinna Arendused — the company that has managed the city's markets since the beginning of this year — said that swift action by internal auditors allowed the organization to detect the violations and respond accordingly.
"It is important to us that market management is trustworthy and transparent and we are doing everything we can to prevent similar incidents in the future," Aavik said.
Among other measures, the company plans to gradually phase out the option to pay for sales permits in cash. "We are overhauling the permit system, refining internal procedures, limiting cash transactions and reviewing past cash payments," Aavik explained.
The violations came to light during an internal audit conducted in October. The investigation identified more than 30 problematic cases in 2025, mostly related to delayed issuance of sales permits. In five cases, there is serious suspicion of cash embezzlement. The exact amount of damages will be determined through further investigation.
AS Tallinna Arendused is regularly updating the supervisory board and city representatives on the progress of the reforms and continues to cooperate with internal auditors and law enforcement authorities.
All city markets remain open and continue operating as usual. In the first 10 months of this year, over 150 vendors have operated at the markets and more than 2,000 sales permits have been issued.
Tallinn's municipal markets include the Fish Market, Mustamäe Market, Nõmme Market and the flower stalls at Viru tänav 26.
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Editor: Mari Peegel, Marcus Turovski
