Criminal charges for aggravated subsidy fraud pressed against Konecranes’ current vice chairman in regard to a previous position have been dismissed.
The charges relate to Stig Gustavson’s time as chairman of the board of Industry Park East Management Oy between 2011-2012.
The aggravated subsidy fraud charges, as well as all other claims against Gustavson made in connection with the hearing of the charges, were dismissed by the Helsinki District Court.
Gustavson was chairman of Konecranes’ board between 2005 and March this year, when he became vice-chairman as of March 23, 2016.
According to Konecranes, Park East Management’s purpose was to help Finnish small and medium-sized enterprises (SMEs) become established in Russia and to develop a business park near St Petersburg.
As Konecranes said, the company has gone bankrupt since Gustavson’s chairmanship.
According to Park East Management’s website, Konecranes is one of its “stakeholders” and one of two shareholders in its subsidiary business Industry Park Morozova.
However, Konecranes’ board of directors’ vice-chairman Ole Johansson told CM earlier this year that the information was incorrect and out-of-date.
Johansson added: “Originally, when this park was initiated, there was an idea that Konecranes would be a party to it, and that is also the reason why Mr Gustavson was appointed, but there is no relation whatsoever between this park and Konecranes today.”
According to Johansson, the business project never really got off the ground.
In a statement released earlier this year, Konecranes said that it is not a party in this matter and pointed out that Gustavson denied the charges and demanded the court rejected them in the trial.
Carrying out subsidy fraud is defined as making an incorrect or incomplete statement relevant to a subsidy, for themselves or for another, to someone with the power to award subsidies.
The legal term aggravation is defined by the Legal Dictionary as: “Any circumstances surrounding the commission of a crime which increase its seriousness or add to its injurious consequences.”
Aggravated crimes are punished more severely than ones without aggravation.