Cronyism Finnish Immigration Concerns


Myself and few others are very suspicious over the renting of Suolahti’s Kivilahti camping center by the ambiguous firm, Omnis Medica OY (Ltd), formerly known as natural medica. Now where there’s smoke, there’s fire.

NOTE: Omnis Medica OY supposedly rented the Kivilahti premises from the Suolahti Lutheran Church board to accommodate the construction team / workers for a new Bio-factory in nearby Äänekoski

Politicians involved in refugee business

Sunday 20/9/2015 at 07.46

 Former and current MP’s sit on the Board of Directors of private reception center.

The Finnish Immigration Service to set up new reception centers in Espoo's Otaniemi. Running of the reception center is responsible for Visiting Oy.

The Finnish Immigration Service is to set up new reception centers in Espoo’s Otaniemi. Luono Ltd is responsible for the running of the reception center .

The Finnish Immigration Service announced on Wednesday it is to set up a reception center in Otaniemi, Espoo, for adult asylum seekers.

According to the immigration office, the responsibility for the start-up activities and maintenance of the property of the reception center at the former Emergency Services College, is Luona Oy.

At the beginning of the summer, the company changed its name to Luona (formerly Barona Hoiva Ltd) whose workers and housing services belong to the Barona Group.

Barona has provided emergency accommodation in the city of Helsinki through another subsidiary, Forenom. The crisis in accommodation has been for Barona an extremely lucrative business.

The new reception center is ready for a hundred inhabitants, but the number of seats can be increased in a week to 300-400 inhabitants.

According to the Finnish Immigration Service there has not previously been a reception center maintained by private enterprises in Finland.

Large sums

The Finnish Immigration Service states that one day at the reception center costs the state on an average of EUR 40 per asylum applicant.

– The national average is also true for Luona Ltd.says Immigration Service Communications, Hanna Kautto.

According to Kautto, because of the urgency of the situation a written agreement has still yet to be done.

However, an oral agreement can be found and in the light of this Luona can charge for their services the same as, for example, the Finnish Red Cross (SPR), or the municipalities.

One hundred asylum seeker housing will paid by the state about EUR 4 000 per day, or EUR 120 000 per month.

The national average of 400 asylum seeker housing is, on a monthly basis for the business, amounting to nearly half a million euros.

On an annual basis it has been said to be almost six million euros.

According to the Finnish Immigration Service, the handling of accommodations for hundreds of asylum seekers at the reception center requires a lot of staff.

– One hundred people requires 9-10 employees and three hundred requires 18-19 employees. So, staff costs are certainly a large part of this (running) to the administrator, says Kautto.

Familiar names

The entire Barona Group’s turnover last year was EUR 160 million. Barona Hoiva accounted for EUR 3.5 million, but earnings fell close to zero.

The chairman of the Board of Directors for Luona is the City of Helsinki’s ex-Social Director Paavo Voutilainen, who moved to Barona’s employee list in the spring of last year.

The housing of people in trouble is familiar business for Voutilainen, because he was responsible for the purchase of the City of Helsinki’s emergency accommodations until the end of 2012.

Voutilainen also led the City of Helsinki’s crisis accommodation working group, which submitted its final report at the end of 2013.

IivariLuona’s other board members are Barona’s CEO Markus Oksa, MP Sanna Lauslahti (National Coalition Party), ex-MP Iivari (SDP) and the former director responsible for human relations for the nuclear power company, Fennovoima,  Pasi Natri. Natri is the spouse of MEP Miapetra Kumpula-Natri (SDP).

Ordinary business

Former MP and MEP Iivari says she is involved in a purely professional board.

– I’ve been in the past at the Helsinki Deaconess Institute Foundation Board of Directors, so this is in some ways a continuation of it, says Iivari.

Luona was established last year in the spring according to Iivari, to continue handling services also for the elderly.

– This is a completely new company, which is has been created says Iivari.

According to Iivari, a reception center is for the company’s business, just one among others.

– We are doing this also, quite along the same terms as the Finnish Red Cross. There’s nothing more to it, says Iivari.

According to Lauslahti, the company’s mission is to do business. As with Iivari, Lauslahti is involved in strategic government as a professional, not as a shareholder.

– This business has a serious ethical questions and our mission is to bring the government’s work on this ethical side into full display, says the Conservative Party’s MP .

harsh criticism

The “emergency business” between the City of Helsinki and Barona was drawn attention to for the first time a couple of years ago.

Member of the Helsinki City Board and the Chairman of the Left Alliance, councilor, Veronika Honkasalo, left the city council a written question in March of 2013, in which she asked how the Social Affairs and Health Office has decided to use an expensive Cooperation Agreement with the Barona subsidiary, Forenom.

Honkasalo said she had received from the social and and health office information according to which the City of Helsinki had paid Forenom about eight million euros for temporary accommodation expenses in 2010-2012. According to Honkasalo, the collaboration with Forenom, cost Helsinki almost EUR four million in 2012.

According to Honkasalo, with the agreement with the City of Helsinki, Forenom’s net sales tripled in three years to EUR 18 million.

– With the turnover growth, Forenom has made it possible, among other things, to often ask twice as much rent as compared to rental homes on the open market, Honkasalo wrote on his blog.

A survey conducted by Helsingin Sanomat has learned that the city of Helsinki paid Forenom for the accommodation of a single family in crisis EUR 2 500 per month.

Helsinki’s Health and social services, Deputy Mayor, Laura Räty (National Coalition Party) deemed the prices Forenom charged as “incomprehensible”.

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