Rovaniemi City Council denies discharge from liability for CEO and chairman amid misconduct allegations

The Rovaniemi City Council has proposed that the CEO and chairman of Rovaniemi Regional Market Properties be denied discharge from liability. Allegations of misconduct within the city’s real estate company emerged in mid-May, leading to the firing of CEO Antti Herajärvi and the board members. In June, the city released a report from an internal audit investigating the suspected misconduct, revealing several irregularities in the actions of CEO Herajärvi and chairman Mika Kansanniva.

The report indicated that the company’s leadership was accommodating themselves and their close associates in company properties while renting out their personal homes to tourists. Furthermore, the company credit cards were reportedly misused for personal expenses.

During a meeting on Monday, the city council directed Ulla-Kirsikka Vainio, the city manager and representative of Market Properties at the shareholder meeting, to ensure that the shareholder meeting approves the financial accounts for 2023 and grant discharge from liability to other board members, excluding Kansanniva and Herajärvi.

The publication of the auditors’ report sparked discussion in the council meeting. Tuomas Koskiniemi from the Finns Party suggested that the document be made public, provided it aligns with police protocols. Council chair Susanna Viitala proposed that the matter remain tabled based on internal controls and risk management, with the document’s public status to be clarified with the police.

The council unanimously decided to revisit this issue in the next meeting. Rovaniemi city has filed a request with the police for an investigation into the suspected abuse of a trustworthy position, which is still in the preliminary investigation phase. Rovaniemi city is the sole owner of Rovaniemi Regional Market Properties, which is currently in search of a new CEO and manages event areas for corporate clients.