We are representing several recipients of support paid from the state budget or European Union funds, in disputes with the Estonian state, represented by Riigi Tugiteenuste Keskus (State Shared Services Centre – RTK).
Recovery of grants
Recently, disputes over financial correction decisions by implementing entities have become an increasing trend in administrative disputes. In these situations, it is disputed whether the state can recover from the recipient the sum paid from the state budget or from European Union funds.
Such recoveries are usually based on errors in the public procurement procedure or unlawful modifications of public contracts. In most cases, such recovery decisions are applied on local governments or non-governmental organisations, who may also face serious financial difficulties as a result of the obligation to repay the support. Recovery claims can amount to hundreds of thousands of euros.
Successful clients
We are currently representing a number of beneficiaries in disputes before implementing entities and courts over the legality of financial correction decisions. Although several legal proceedings are currently pending, our clients have already achieved first positive results.
For example, during challenge proceedings we helped Riigi Kinnisvara Aktsiaselts to convince RTK that the financial correction decision made by the latter in connection with the public procurement for the construction of a police and rescue services headquarters in Kohtla-Järve should be repealed. In the case of recovery of funds concerning a similar building in Kiviõli, RTK admitted the complaint during administrative court proceedings, which is why the dispute also ended successfully for the client.
We are also representing the Rakvere City Government in a dispute with RTK regarding a decision on the recovery of funds related to the construction of a work and technology centre for elementary schools in the city of Rakvere. In this dispute, the Tallinn Administrative Court granted the Rakvere City Government’s application for interim relief, on the basis of which Rakvere does not have to pay the amount to be recovered to the state before the end of the court proceedings.
In addition, we are representing other local governments in pending court disputes regarding financial correction decisions.
Our services and client team
Riigi Kinnisvara Aktsiaselts, Rakvere City Government and other local governments participating in disputes are being represented by counsel Kadri Härginen, senior associates Gerli Helene Gritsenko and Mario Sõrm, and associate Teele Raja.
