Advising Enterprise Estonia in defence-related offset auditing
TRINITI Estonia (former Tamme Otsmann Ruus Vabamets) was chosen by Enterprise Estonia for auditing the offsets of defence-related procurements, as a result of the recent public procurement. Our firm has been conducting the offset audits already since 2010 and as a result of a successful public tender will continue this work also during in 2013-2014.
In defence-related procurements, the offset means a contractual provision pursuant to which the seller shall buy goods or services from the buying country, make investments or provide marketing assistance.
So far, the Republic of Estonia has contracts with three partners: in February 2007, offset contracts were signed with a Swedish company SAAB and a French company MBDA for the acquisition of a short-range air-defence system with the value of 56 million Euros. In 2008-2011, SAAB and MBDA in return made purchases from different Estonian companies for more than 15 million Euros. In June 2009, a procurement contract was entered into with a French company Thales-Raytheon Systems for the acquisition of two three-dimensional medium-range ground radars, with the value of 22 million Euros. As of today, Thales-Raytheon Systems has performed offsets from Estonian companies for approximately 4 million Euros and this process will continue.
TORV has assisted Enterprise Estonia in auditing the conformity of the transactions with the offset contracts and has also supported the client with the necessary legal advice in the course of the auditing process. By today our firm has advised in connection with the legal assessment of nearly 30 offset transactions and have audited offsets amounting to approximately 15 million Euros. Our offset audit team is led by partner Tõnis Tamme and includes advocates Karmen Turk and Mikk Põld.