Prosecutors have decided to dismiss allegations of gross fraud by a former payday lender and businessman. Onni Sarmaste related to the supply of defective personal protective equipment (PPE) at the onset of a coronavirus pandemic.
The charges against Sarmaste’s business partner were also dismissed.
In April 2020, the security of supply center Nesa paid Sarmaste EUR 4.9 million for the supply of face masks from China for use by healthcare workers.
Later, VTT’s research center found that the masks did not meet the requirements for hospital use, and users reported allergic reactions and a strange odor from the equipment. The number of masks was also found to be lower than promised.
The Central Criminal Police launched a preliminary investigation on suspicion that Sarmaste and his accomplices had deliberately misled NESA authorities in matters that were decisive for the purchase decision.
Charges against three NESA officials – the agency’s former CEO Tomi Lounema, former Chief Administrative Officer Asko Harjula and former head of department Jyrki Hakola – dropped earlier this month.
All three left the agency as a result of a failed deal.
However, the prosecutor decided not to prosecute because, based on the results of the preliminary investigation, there was no probable reason to suspect Sarmaste or his business partner of the crime.
In a statement issued after the prosecutor’s decision, NESA stated that it intended to review the decision and assess possible follow-up. The agency further added that it will continue to require Sarmaste, his company and business partner to pay the transaction amount and other ancillary costs.
Sarmaste previously worked for a quick loan company before falling into heavy debt himself. He has a long criminal record, including assault, intimidation, opposition to arrest, and drunk driving.