The Ministry of Economic Affairs and Employment has received a report from the Board of Directors of the National Emergency Supply Agency (Huoltovarmuuskeskus, in Finnish). on the procurement of personal protective equipment to fight against coronavirus epidemic.
The report was requested on 9 April, amid the public scandal of the trash-masks for which Finland paid 10 million euros euros though they did not meet quality and safety standards for use in hospitals.
In addition, the agency has been questioned in public due to the type of contracted suppliers: Tiina Jylhä, a tabloid celebrity who owns a plastic surgery clinic in Estonia and Onni Sarmaste, a fast-loans entrepreneur of dubious reputation and poor credit history.
As a result of this scandal, the CEO of the Emergency Supply Agency Tomi Lounema was forced to resign. And other two members of the management team, Asko Harjula and Jyrki Hakola, have been suspended for their participation in the case.
The Board of Directors of the National Emergency Supply Agency commissioned from KPMG Oy Ab a separate review of the personal protective equipment procurement, and has also conducted internal investigations.
The report was submitted to Jari Gustafsson, Permanent Secretary of the Ministry of Economic Affairs and Employment, on 14 April.
Procurement "irregularities"
In a press release, the Ministry says it accepts the explanations provided, with the exception of two procurement-related irregularities.
“The report shows that those involved in the much-discussed procurement operations failed quite extensively to comply with the financial rules, rules of procedure, and standard procurement processes of the National Emergency Supply Agency. In addition, there is abundant evidence of failure to sufficiently verify the reliability of suppliers and the product certificates. The nature of these failures makes them unacceptable regardless of the urgency and workload associated with the ongoing coronavirus crisis,” said Permanent Secretary Gustafsson, commenting on the review.
“Having read the report submitted to me, I can say that the Board of Directors of the National Emergency Supply Agency and the new Chief Executive Officer have taken measures the Ministry can expect from them based on the reported facts and explanations provided. It is now important to safeguard the Agency’s operational capability and restore credibility. The Board of Directors and the new CEO of the National Emergency Supply Agency will receive all the support they need from the Ministry. The Ministry has no further requests for explanations from the Agency; we accept the explanations provided, with the exception of the irregularities regarding the two purchase transactions which are still under investigation,” Gustafsson concluded, summarising the Ministry’s response to the report.
