The Situation and Developments of Nordica and Associated Companies

Session: 15th Riigikogu, 3rd sitting, information briefing

Date: 2024-01-10 15:07

Participating Politicians:

Total Speeches: 10

Membership: 15

Agenda Duration: 13m

AI Summaries: 10/10 Speeches (100.0%)

Analysis: Structured Analysis

Politicians Speaking Time

Politicians

Analysis

Summary

Climate Minister Kristen Michal responded to an open question posed by Riigikogu member Rain Epler concerning the current status and developments of Nordica and its associated companies (Transpordi Varahaldus, Xfly). The discussion primarily centered on the timeline for the company's privatization, the findings of the special audit, and potential claims against former executives. The Minister confirmed that the goal of founding Nordica was to ensure good flight connections from Estonia, but in the current economically difficult situation, the state has no interest in bearing operational risks, and the company is no longer considered strategic.

Michal provided an overview of the privatization process, which is being managed by Superia. Non-binding offers are scheduled to be received by January 26. The Minister emphasized that the state should not expect great profit from the privatization, but rather see the benefit in divesting itself of a non-strategic asset. The interim report of the special audit arrived in December, and the final report is expected to be completed in the second week of February. The Minister confirmed that it will be made available to the parliament. The interim report pointed to the need for improved governance, highlighting poor project and risk management, inadequate financial management, and instances of conflicts of interest. Michal confirmed that if the special audit provides grounds, claims will be presented to the former managers, but they do not wish to preempt events.

Decisions Made 1
Collective Decision

No official decisions were adopted during the briefing. The Minister provided an overview of the ongoing processes (special audit, privatization).

Most Active Speaker
Rain Epler
Rain Epler

Fraktsiooni mittekuuluvad Riigikogu liikmed

The most active politician whose ID was submitted was Riigikogu member Rain Epler. Epler posed both the initial broad, open question and several detailed follow-up questions concerning the special audit, the privatization timeline, and potential claims against former executives. He adopted a critical stance, questioning the transparency and timing of the sales process.

Esimees Lauri Hussar
15:07:04
AI Summary

Riigikogu member Rain Epler is submitting his fifth question to Climate Minister Kristen Michal concerning the situation and developments of Nordica and its associated companies.

Rain Epler
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:07:14
AI Summary

Rain Epler posed open questions regarding the situation of Nordica and its associated companies, specifically inquiring about the completion time of the special audit's final report, the accountability of the management board and the supervisory council, the urgency of buyer interest, the state's revenue forecast, and the current status and future outlook.

Kliimaminister Kristen Michal
15:08:49
AI Summary

Climate Minister Kristen Michal emphasizes that the information available to the public regarding Nordica, along with the final report of the interim and special audit, points to improved management. He further stresses the vital role of maintaining flight connections in the Estonian economy and confirms that significant profit should not be expected from privatization until non-binding offers are submitted by January 26.

Esimees Lauri Hussar
15:12:04
AI Summary

Chairman Lauri Hussar concludes his address, offers his thanks, and invites Rain Epler to pose a clarifying question.

Rain Epler
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:12:07
AI Summary

Rain Epler addresses the open question of which companies might reach the stage of non-binding offers (whether one or several), the necessary sequence of actions before the sale (ensuring the final report of the special audit is complete and its conclusions are known), and finally, he assesses management-related aspects and the state's potential claims against the former management.

Kliimaminister Kristen Michal
15:13:25
AI Summary

In a complicated economic situation, Climate Minister Kristen Michal stated that the government is considering investing additional funds into a strategic company to maintain connectivity. Simultaneously, a special audit will be conducted to gain a clearer understanding of the interests of the owners and the board, as well as risk management, after which privatization will be evaluated and market offers will be sought, since the state does not wish to remain an owner if the companies fail to offer flights from Tallinn or Estonia.

Esimees Lauri Hussar
15:16:26
AI Summary

The Chairman thanked everyone and announced the additional question, turning to Arvo Aller to ask him to respond.

Arvo Aller
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:16:32
AI Summary

Arvo Aller raised the concern that Nordica’s non-binding offers before the final report is completed might lack transparency, and that after the sale, the company could continue operations and expand from Tallinn into countries around the world.

Kliimaminister Kristen Michal
15:18:00
AI Summary

Climate Minister Kristen Michal announced that the state has received the mandate for the privatization of the company (or its possible liquidation), and the sales process will be carried out by the Ministry of Finance in cooperation with the experienced consulting firm Superia. This process consists of two stages: in the first, essential contracts will be gathered and initial bids will be submitted; in the second, more detailed analyses will be conducted with interested buyers. Furthermore, all information will be open and transparent to everyone, including via the broadcast of the information session.

Esimees Lauri Hussar
15:20:28
AI Summary

Chairman Lauri Hussar concludes the consideration of today's fifth question.