Helsinki court orders compensation for former director of Finnish Security Agency after wrongful termination

The Helsinki District Court has ruled that the Finnish Security Agency must compensate its former Administrative Director for the unjust termination of his employment. The compensation amounts to €125,752. Additionally, the agency is required to pay over €17,000 to the Employment Fund for unemployment benefits deducted from the director’s compensation, as well as more than €42,000 to cover his legal expenses.

Following the onset of the COVID-19 pandemic, the Finnish Security Agency received requests for assistance from the Ministry of Social Affairs and Health on February 12 and March 24, 2020, regarding the procurement of respiratory masks. During these acquisitions, the agency entered into unsuccessful mask purchases with LDN Legal Partners Ltd., Finance Group Helsinki Oy, and The Look Medical Care OÜ. These dealings led to the termination of the Administrative Director’s employment.

The court examined whether there were valid and substantial reasons for the termination as outlined in employment law. It was found that the Administrative Director approved invoices related to the mask purchases even though the requirements set by the agency’s operational rules and financial regulations were not met. The agency engaged in a total of €10 million in mask contracts with businessman Onni Sarmaste, who has outstanding debts, and beauty entrepreneur Tiina Jylhä, who has a history of financial crime. Laboratory tests revealed that the valuable masks were unsuitable for hospital use.

Despite the known risks associated with the mask procurements, the CEO of the agency, along with the Ministries of Economic Affairs and Employment and Social Affairs and Health, were aware of these risks, and there was no intervention regarding the disregard for guidelines. The court concluded that the Administrative Director could reasonably have believed his actions were permissible under the exceptional circumstances of urgent mask procurement. The ruling is not yet final.