Monday

22nd Apr 2019

Investigation

Arms deals and bribes: The downfall of Slovenia's former PM

  • Jansa (l) arriving at EU Council in his time as PM (Photo: consilium.europa.au)

Former Slovene prime minister Janez Jansa was sentenced on Monday (28 April) to two years in prison over a high-profile scandal involving defence contracts and bribery.

The decision by the Higher Court in Ljubljana, which upholds an earlier ruling by a district court, is expected to be followed within weeks by a call for Jansa to start his custodial sentence.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

  • Finnish journalist Magnus Berglund and Slovene journalist Blaz Zgaga broke the story (Photo: MelkiaD)

Jansa's lawyers have pledged to challenge and to "invalidate" the verdict.

It all started in 2005, during Jansa's first year in office, when the defence ministry began a purchase of 135 armoured modular vehicles. In December 2006 Finnish defence contractor Patria signed a €278 million deal. Rumours about corruption immediately started to spread.

In February 2007, Austrian police alerted colleagues in Slovenia, Finland, Thailand and Canada about possible irregularities concerning the deal. Slovenia's police overlooked the cable for 15 months though it subsequently came to light when the scandal broke.

But for the foreign press, Jansa, whose authoritarian style of rule included stifling the local press, might have contained the scandal.

On 1 September 2008, a few weeks before Slovene parliamentary elections, Finnish public television YLE aired an investigative documentary.

Its concluding words were: "J is Janez Jansa, prime minister of Slovenia. He was the chairman of the council of ministers of the European Union for the first half of 2008. The Prime Minister's party was also a beneficiary in the Patria deal. In other words: The Finnish state-owned Patria bribed the Prime Minister of Slovenia."

Slovene online media Vest.si simultaneously ran a similar story.

It became a major scandal in both countries. A few days later the Finnish documentary was aired by Slovenia's public broadcaster. An urgent session of the Slovene parliament was called and the Slovene foreign ministry issued two diplomatic cables to Finland threatening worsening of bilateral relations because of the investigative programme. At the end of the month Jansa's SDS party lost the elections by a tiny margin.

Finnish journalist Magnus Berglund and his Slovene colleague – the author of this story – revealed the whole bribery ring. On February 2007, €3.6 million was paid by Patria to its Austrian representative Hans Wolfgang Riedl.

He immediately forwarded €2.3 million to former F1 racing team owner Walter Wolf, who tried to send money to more countries. But Austrian anti-money laundering officials blocked the transactions and notified the police.

The Finnish police then took over the main burden of investigation.

It was confirmed later that Austrian middleman Hans Wolfgang Riedl was entitled by Patria to 7.5 percent of the value of the deal or €12.1 million, of which he was supposed to forward 4.2 percent or €6.7 million to Walter Wolf. He, in turn, was responsible for bringing money to Slovene businessman Joze Zagozen and his boss, Janez Jansa.

Early bribe payment request exposes scandal

Every payment was to have been made after delivery of each vehicle, but the corruption scheme was exposed in February 2007 when pre-payment of bribes specifically requested by the Slovene side triggered a police investigation.

Slovenes requested pre-payment to the tune of 30 percent of all agreed bribes to be paid in 30 days after contract signature. According to testimony by a Finnish manager, the Slovene SDS party needed money for an election campaign.

Additionally, Slovene actors established a second channel of bribes from the company Rotis, the Slovene representative for Patria.

After the scandal erupted, prompted by the Finnish TV documentary, pro-Jansa media in Slovenia started a smear campaign against Finnish journalist Magnus Berglund while his Slovene colleague received death threats.

Jansa sued Berglund, YLE and two interviewees – including the director of police who during the YLE documentary said the Jansa government exercised political pressure – for €1.5 million in damages for alleged defamation. The Slovene journalist was interrogated by a parliamentary inquiry led by the SDS party about his journalistic co-operation with the Finnish colleague.

In June 2013, the district court convicted Jansa to two years in prison; former military special forces commander brigadier Anton Krkovic received 22 months; and the owner of Rotis, Ivan Crnkovic, got 22 months in prison. Businessman Zagozen died before the verdict. Wolf moved to Canada and is beyond reach of the Slovene justice system.

In April 2014, Jansa lost the entire libel suit.

During the same month painter Jure Cekuta was convicted to four years and four months behind bars and former chief of army logistics brigadier Peter Zupan received two and a half years in the second Patria trial. Cekuta was responsible for the other channel of lobbying and received more than €400,000 from Patria.

All the Slovenes sentenced in relation to this scandal were involved in arms smuggling in the former Yugoslavia in the 1990s.

Austrian middleman Hans Wolfgang Riedl, a former Glock and Steyr employee, received three years in prison in Vienna in April 2013.

Five top Patria managers were acquitted by a Finnish court in January 2014. The Finnish prosecutor appealed to the higher court requesting the integration of the Slovene and Croatian Patria bribery cases into a single trial.

According to court files, Patria paid at least €3.9 million for the Slovene deal and €1.5 million for a Croatian deal before October 2007.

Former president of the Republic of Croatia, Stipe Mesic, is among those suspected of being involved. He has denied any wrongdoing.

The writer of this article collaborated with Finnish journalist Magnus Berglund on the Patria investigation

Slovenian government collapses

Slovenian leader Jansa has been ousted from office in a no-confidence vote on Wednesday amid economic gloom compounded by corruption allegations.

Analysis

Slovenia's convicted ex-PM: down but refusing to be out

Slovenia's ex-PM Janez Jansa is supposed to go to prison on 20 June. But he continues to be coy about his political future with the country's laws not ruling out that he can run in next month's elections.

Anti-immigrant party wins Slovenia election

Some 25 percent of Slovenians have voted for the anti-immigrant Slovenia Democratic party headed by Janez Jansa, a former PM who spent six months in jail for corruption.

Investigation

Exposed: How Morocco lobbies EU for its Western Sahara claim

The European parliament's lead negotiator on the Morocco trade deal, French liberal MEP Patricia Lalonde, is also on the EuroMedA Foundation board along with former Moroccan state ministers and a top ranking official in Morocco's ministry of agriculture.

Investigation

EU Commission paying too much for iPhones and IT

EUobserver has obtained internal documents and emails from within the European Commission that outline questionable contracts with outside suppliers who appear to be overcharging for goods and services.

Stakeholders' Highlights

  1. Counter BalanceSign the petition to help reform the EU’s Bank
  2. UNICEFChild rights organisations encourage candidates for EU elections to become Child Rights Champions
  3. UNESDAUNESDA Outlines 2019-2024 Aspirations: Sustainability, Responsibility, Competitiveness
  4. Counter BalanceRecord citizens’ input to EU bank’s consultation calls on EIB to abandon fossil fuels
  5. International Partnership for Human RightsAnnual EU-Turkmenistan Human Rights Dialogue takes place in Ashgabat
  6. Nordic Council of MinistersNew campaign: spot, capture and share Traces of North
  7. Nordic Council of MinistersLeading Nordic candidates go head-to-head in EU election debate
  8. Nordic Council of MinistersNew Secretary General: Nordic co-operation must benefit everybody
  9. Platform for Peace and JusticeMEP Kati Piri: “Our red line on Turkey has been crossed”
  10. UNICEF2018 deadliest year yet for children in Syria as war enters 9th year
  11. Nordic Council of MinistersNordic commitment to driving global gender equality
  12. International Partnership for Human RightsMeet your defender: Rasul Jafarov leading human rights defender from Azerbaijan

Latest News

  1. Romania drafts EU code on NGO migrant rescues
  2. Bulgaria, Hungary, and Malta shamed on press unfreedom
  3. EU drafts $20bn US sanctions list in aviation dispute
  4. Brunei defends stoning to death of gay men in EU letter
  5. US Democrats side with Ireland on Brexit
  6. Wifi or 5G to connect EU cars? MEPs weigh in
  7. How Brexit may harm the new EU parliament
  8. EU parliament backs whistleblower law

Stakeholders' Highlights

  1. UNICEFUNICEF Hosts MEPs in Jordan Ahead of Brussels Conference on the Future of Syria
  2. Nordic Council of MinistersNordic talks on parental leave at the UN
  3. International Partnership for Human RightsTrial of Chechen prisoner of conscience and human rights activist Oyub Titiev continues.
  4. Nordic Council of MinistersNordic food policy inspires India to be a sustainable superpower
  5. Nordic Council of MinistersMilestone for Nordic-Baltic e-ID
  6. Counter BalanceEU bank urged to free itself from fossil fuels and take climate leadership
  7. Intercultural Dialogue PlatformRoundtable: Muslim Heresy and the Politics of Human Rights, Dr. Matthew J. Nelson
  8. Platform for Peace and JusticeTurkey suffering from the lack of the rule of law
  9. UNESDASoft Drinks Europe welcomes Tim Brett as its new president
  10. Nordic Council of MinistersNordic ministers take the lead in combatting climate change
  11. Counter BalanceEuropean Parliament takes incoherent steps on climate in future EU investments
  12. International Partnership For Human RightsKyrgyz authorities have to immediately release human rights defender Azimjon Askarov

Join EUobserver

Support quality EU news

Join us