Owners of two Estonian construction firms Wolmreks Ehituse and Kristiine Ehituse are suspected to have masterminded a scam causing the state and subcontractors to lose millions, writes Äripäev.
The scheme was simple - after winning a public tender and choosing subcontractors, the owners of Wolmreks and Kristiine Ehituse told subcontractors that subcontracting contracts will be made not with Wolmreks and Krstiine, but by a third company Merkton Ehitus. The latter is now being liquidated and owes the state and subcontractors at least 18 million kroons.
Some of the subcontractors have filed an application to the police claiming that Merkton was a fraudulent company and a shell from the start.
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Construction companies suspected of large-scale fraud