On Monday, Krista Aas, the deputy secretary general for assets at the Ministry of the Interior, informed Reisiekspert that the company had breached the contract. The agreement had been in place since 2023.

Aas said the travel agency had repeatedly made above-market offers for services to the Police and Border Guard Board (PPA).

In one case, the client requested an offer for accommodation and catering at the Tehvandi Sports Center in Kääriku. Reisiekspert's offer listed the price of a house at €470 per night, but the same house was advertised on the center's website for €420. The price for catering was also higher.

The PPA contacted Tehvandi Sports Center and found out that the travel agency had been offered a lower price for the services. Reisiekspert had passed on a modified, higher-priced version to the client (the PPA).

In another case, the travel agency submitted a quote of €9,942 (excluding VAT) for organizing a motivational event at Endla Farm, although the farm had actually quoted a price of €9,112.

In October, the ministry asked Reisiekspert to explain why, in addition to the 0.01 percent service fee stipulated in the contract, the company had also inflated the purchase price. Aas said the company admitted there were violations.

However, Reisiekspert's representative told the ministry that no harm had been caused to the client. In the company's view, this is a hybrid contract whose terms the contracting authority is interpreting unilaterally and restrictively.

Kadri Jõerüüt, a member of Reisiekspert's management board and head of its conference division, told ERR they do not see themselves as being at fault.

"The Ministry of the Interior has begun interpreting the contract between the parties — which is a standard agreement in this sector — in a way that is both unlawful and clearly unreasonable. Reisiekspert has provided the best possible service under market conditions. Reisiekspert is currently considering, together with its legal representatives, taking the matter to court," Jõerüüt said.

Aas pointed out that if a company inflates the purchase price in its offers, it also earns a larger service fee than the percentage agreed in the contract.

"We emphasize that Reisiekspert AS was awarded the contract as the successful bidder because it had offered the lowest service fee percentage in the public procurement process," she noted.

Aas added that under the terms of the contract, the service fee is to include all of the travel agency's costs, and the company was required to pass along offers at the purchase price.

As the Ministry of the Interior considers this a material breach, they are entitled under the Law of Obligations to terminate the agreement without providing an additional notice period.

"Given the above and the fact that Reisiekspert AS has repeatedly and significantly breached its contractual obligations, the Ministry of the Interior cannot, based on the principle of reasonableness, be expected to continue the contract until the agreed-upon date or the end of the notice period," Aas said.

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