Police said Friday that they had wrapped up a preliminary investigation into a case involving chancy investments into derivative instruments by state-owned airports operator Finavia. The investments contravened the firm’s investment guidelines because of the high level of risk involved and resulted in losses of 34 million euros.
They said that they have now referred the case to prosecutors who will consider what charges – if any – should be laid.
According to law enforcement, the result of the preliminary investigation gives them reason to suspect that four former members of the company’s management team are guilty of criminal offences in relation to the deals. The suspects are a CEO, finance manager, deputy CEO and CFO – all former employees.
Police said they had interviewed all of the suspects and all are believed to have abused their positions of trust.
Specifically, police believe that the former finance manager and deputy CEO are guilty of misconduct by embarking on the derivatives investments. The former CEO and CFO are said to have neglected the required management of Finavia’s financial affairs and reporting to the board and were also negligent in supervising agreements made by the finance manager and deputy CEO.
The financial crimes unit of Itä-Uusimaa police department has been looking into the case on the basis of an investigation request that came from Finavia.
The request mentioned that the investments were made between 2009 and 2011. Finavia lodged the request for an investigation on September 15, 2015.
State auditors also probe dicey deals
The National Audit Office is also looking into discrepancies surrounding Finavia’s derivatives investments. Transport Minister Anne Berner, who is responsible for Finavia, has promised to disclose the results of that probe next Tuesday.
At the end of last year, the state auditors launched a rare inquiry into Finavia to determine why the government stepped in to halt legal action against the company’s former management.
Earlier this year, media reported that the company’s chair resigned her post to protest alleged interference by Berner, when her ministry delayed a civil lawsuit against company auditors Deloitte and Touche regarding the investments. The case was later settled out of court.
On Thursday tabloid daily Iltalehti reported that an initial report by the state auditors’ office has been highly critical of the minister’s actions.
Chair of Parliament’s Audit Committee, Eero Heinäluoma said that there had been no discussion of possible sanctions against Berner for her actions.
