Issues with cash handling and sales permits identified at Tallinn markets

TALLINN - Tallinn's city internal control unit has identified problems with cash handling and the issuance of sales permits at the city's markets.

The internal control unit submitted recommendations to AS Tallinna Arendused to improve work organization, recommends that city institutions broadly reduce cash transactions, and filed a report with the prosecutor's office, the Tallinn Strategy Centre announced.

"Thanks to the swift action of the internal control unit, we were able to identify the violation and respond to it. It is important for us that the management of the markets is reliable and transparent, and we will do everything to avoid similar situations in the future," said Rainer Aavik, a member of the management board of AS Tallinna Arendused.

To ensure the sustainability and transparency of Tallinn's markets, the company has initiated several changes, including plans to gradually phase out the option of paying for sales permits in cash. "We are changing the sales permit system, clarifying work procedures, restricting cash payments, and reviewing past cash transactions," Aavik described.

City Internal Auditor Kaur Siruli noted that the results of the audit are an important step towards a more transparent city system. "The violation related to sales permits had likely been going on at the markets for years and clearly illustrates the risks associated with cash. It is important that these were identified and that the company has taken concrete steps to eliminate them. The internal control unit will monitor the implementation of the recommendations," Siruli said.

The violations emerged during an internal audit conducted in October. As a result of the investigation, over 30 problematic cases were identified for the year 2025, primarily related to delays in the issuing of sales permits. There is a serious suspicion of cash embezzlement in five cases. The exact amount of the damages will be determined by a further investigation.

AS Tallinna Arendused, which took over the management of the city's markets at the beginning of this year, provides regular updates to its supervisory board and the city's owner representatives on the preparation of the changes and continues to cooperate with the city's internal control and law enforcement agencies.

All markets remain open, and trading continues as usual. In the first ten months of this year, over 150 vendors have operated at the markets, for whom the necessary sales permits have been issued on more than 2,000 occasions.