Estonian Finance Ministry: state company heads not required to declare economic interests

Estonian Finance Minister Jürgen Ligi (Reform Party) responded in writing to a question from Riigikogu member Aleksandr Chaplygin (Centre Party), who asked why the economic interests of state company executives are not disclosed to the same extent as those of other state decision-makers, and how the public can monitor potential conflicts of interest.

Ligi noted that all interest declarations already submitted are public and can be viewed free of charge through the Tax and Customs Board's electronic environment after identification. However, the anti-corruption law does not impose a general obligation on all state company executives to file such declarations. Such an obligation can only be set for management board members who have authority over public funds or handle misdemeanor proceedings, and even then only if no more effective ways exist to prevent corruption risks.

A different legal status

The minister stressed that company board members are not holders of public power and do not manage state money or property, unlike ministers, Riigikogu members and other officials, who must act in the public interest regardless of whether it is profitable for the state. According to Ligi, this difference in legal status, purpose of activity and relationship to public power is the main reason the two groups are regulated differently.

Ligi pointed out that the activities of state company executives are primarily governed by the Commercial Code, which sets separate requirements on executives' loyalty and on preventing conflicts of interest. In addition, potential conflicts of interest at state companies are monitored through other means — supervisory boards and auditors oversee operations, internal audit and control systems operate within companies, and candidates for supervisory board seats are pre-evaluated by the Appointments Committee.

The minister also cited the Ministry of Economic Affairs and Communications' position that a mandatory obligation to declare economic interests could make it harder to find suitable candidates for state companies' supervisory boards — such a requirement, in its view, is unlikely to expose people with dishonest intentions but could discourage otherwise suitable candidates. Ligi said any decision to expand the declaration obligation falls under the responsibility of the Ministry of Justice and Digital Affairs.