The Harju District Court has found former Estonian minister and Member of Parliament Kalle Laanet guilty of fraud, handing him a suspended sentence of one year and four months in prison.
The ruling, delivered on Monday, concludes a case centred on housing reimbursements claimed during Laanet’s time as a government minister and later as an MP representing the Estonian Reform Party.
€13,000 in Reimbursements
According to prosecutors, in 2022 and 2023 Laanet knowingly applied for rent reimbursements from the Ministry of Justice and the Chancellery of the Riigikogu under a lease agreement that constituted a conflict of interest.
The rental contract in question was signed with a company owned by his wife’s son. As authorities were unaware of the family connection, Laanet received more than €13,000 in housing reimbursements to which he was not legally entitled, the indictment stated.
In its judgment, the Tallinn court of first instance determined that a stepchild qualifies as a related party under applicable rules. As a result, the court concluded that Laanet should not have entered into a rental arrangement with him while claiming public reimbursement.
Parliamentary Immunity Lifted
The Riigikogu stripped Laanet of his parliamentary immunity in May of last year to allow criminal proceedings to move forward. At the time, Laanet addressed fellow lawmakers, stating that he had never intended to claim funds improperly and had disclosed all of his lease agreements to the relevant ministries and the parliamentary chancellery.
Despite that defence, the court ultimately found sufficient grounds to convict.
Investigation Into Economic Crime
The pretrial investigation was led by the District Prosecutor’s Office for Economic Crime and Corruption, with proceedings conducted by the Central Criminal Police.
The case has drawn attention in Estonia due to its focus on standards of transparency and accountability among public officials. While the sentence is suspended, meaning Laanet will not serve immediate jail time provided he complies with court conditions, the conviction marks a significant development for a senior political figure once entrusted with ministerial responsibility.
The verdict reinforces scrutiny around the use of public funds and the obligations of elected officials to avoid conflicts of interest, particularly where family relationships intersect with financial claims.
By FCCT Editorial Team
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