Apartment scandal threatening Tallinn power bloc

  • 2000-09-14
  • Aleksei Gynter
TALLINN - The privatization policy of the former heads of the Central Tallinn Borough, Juri Ott and Elmar Sepp, may be considered illegal, according to the borough.

Ott and Sepp were chairmen of the borough from 1996 to 1997 and 1998 to 1999, respectively. Ott allegedly developed a dubious scheme of apartment privatization, and Sepp later adopted his methods.

The Central Tallinn Borough commissioned the legal expertise of the privatization scheme to Glikman & Glikman law office last week. The results will come in a week, according to the law office. If the decision of Glikman & Glikman proves the privatization policy brought financial damages to the city, the government of Tallinn will further examine the issue, Tallinn mayor's assistant Heiki Kivimaa told the Eesti Paevaleht daily.

Should Sepp leave the City Council under the accusations of illegal privatization, it would consolidate the positions of the Center Party headed by Edgar Savisaar.

Hannes Kuhlbach, who headed the area in the period between Ott and Sepp, apparently also knew about the scheme.

The system consisted of several stages. First, the officials allotted dwellings located in the most distinguished district of Tallinn, the city center, to people who were forced to leave their apartments because of a new landlord. Renters did not have the money for renovations, and the renovation was funded by someone the borough wanted to have the apartment. The dwelling, unfit for habitation, was to be restored on behalf of the allotted. When the apartment was renovated, the borough granted the restorer the right to privatize the apartment. After the privatization, so-called "owner" sold the apartment much below market price to the person who funded the restoration.

The average living space of most of the 70 dwellings privatized in this way was over 100 square meters. The market price of such apartments exceeded 1 million kroons ($55,600).

Ott is now the director of the Tallinn Botanical Garden, and Sepp is a member of Tallinn City Council.

Anneli Berends, Tallinn City Council's PR manager said she doubts that the scandal will harm the power bloc of capital.

"The power coalition of Tallinn is not so weak at the moment to be affected by this particular scandal," Berends said.

Prime Minister Mart Laar also weighed in, or at least many thought it was him.

"A new apartment scandal that erupted last week may lead to the collapse of Tallinn's power bloc," he said at an online conference at Pro Patria Union's Web site on Sept. 4, BNS put it. Laar's quote later turned out to be false, when Pro Patria announced that a hacker had falsified the answers of the prime minister.

Sirje Kiin, Pro Patria Union's spokesperson, said that a 20-year-old man, who hacked the Web site, had later written a letter of excuse. The falsified statements were removed the same day.