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Home NATIONALCourt orders increase in compensation for ARA
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Sat, 23 May, 2015 12:39:19 AM
FTimes- Report, May 23
 
 
The chair of Riihi-säätiö board, Toivo J. Kanninen was ordered to compensate the Housing Finance and Development Centre of Finland (ARA) in excess of 3.6 million euros.
 
The District Court of Oulu had previously set the damages at approximately 300,000 euros.
 
Kanninen was found culpable of 12 aggravated fraud charges when the Supreme Court sentenced Kanninen to three years unconditional imprisonment.
 
The amount of compensation ordered by the Court of Appeal was the same amount which had been requested by ARA.
 
The Court of Appeal observed that Kanninen gave misleading information and concealed information from ARA.
 
Had the information been known to ARA, the granting of state subsidies or interest subsidized loan for construction of rental apartments would not have been granted at all.
The payment of the state subsidized housing loan would have been discontinued and also the payment of interest subsidy would have been discontinued.
 
Riihi-säätiö constructed 11 rental apartments in Oulu between 1995 and 2001 through the aid of state subsidized housing loan and interest subsidy.
 
ARA said it was satisfied with the ruling.
 
"The aid given by the state must be used for the purpose which they were granted," said Hannu Rossilahti, the Director General at ARA.
 
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