Fined and struggling Ida-Viru waste handler promises prices won't rise
Ekovir, which provides waste collection for several municipalities, was fined this week for attempted fraud. The company says this won't affect service prices.
Ekovir provides waste collection services for four municipalities in Ida-Viru County — Alutaguse, Narva, Kohtla-Järve and Sillamäe — as well as for Anija and Jõgeva municipalities. On Wednesday, the company was fined €650,000 for attempted waste fraud. In addition, it must retroactively pay over €2 million in environmental fees. According to sworn attorney Andri Rohtla, who represents Ekovir, the penalties will not affect regular customers.
"Ekovir's management and owner have assured me that this financial penalty, or any claim related to Nikolai Ossipenko, will not result in price increases. If prices do rise, it will be due to objective economic conditions," Rohtla said.
The Prosecutor's Office also took into account during plea negotiations that the fine would not render the company insolvent or push it into bankruptcy.
"Under the current court ruling, Ekovir may continue operating and no ban was imposed. The state, including the Environmental Board, clearly has an interest in the company continuing its operations to resolve the issues that have arisen. If the company were to go bankrupt, it would not repay the state, meaning the state would bear the full financial loss," said Daniel Toom, district prosecutor specializing in economic and corruption crimes.
Nikolai Ossipenko, the company's former director and the person behind the 2022 fraud attempt, died in the spring of last year. Ekovir hopes that some of the claims brought against it can be recovered through the ongoing bankruptcy proceedings of Ossipenko's estate.
"Ossipenko's estate is currently in bankruptcy and Ekovir is one of the creditors. The company has already filed several claims, including the €2 million environmental fee, and plans to file for the monetary penalty issued this week as well. The process is ongoing and I can't yet say what the outcome will be," Rohtla said.
Kristjan Aava, the sworn attorney overseeing the bankruptcy of Ossipenko's estate, confirmed that he is aware of Ekovir's intention to claim compensation from the estate. However, since the proceedings are still in the early stages and involve several legal disputes, it is too soon to say what the final outcome might be. Aava noted that the estate's assets are likely smaller than the total claims from creditors, meaning they will fall well short of covering Ekovir's demands even if the court recognizes them in full during the proceedings.
In addition to Wednesday's fine and pending claims, Ekovir also has more than €2 million in deferred tax debt.
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Editor: Marcus Turovski
