Nordica special audit report – a thorough examination reveals significant management errors and deficiencies in risk assessment

The government has released the special audit report on Nordica, providing a detailed overview of our team’s in-depth investigative work. This report offers rare insight into the operations of the Nordica Group. Conducting special audits for state-owned enterprises is complex, especially when it involves a comprehensive review of an entire corporate group’s activities and addressing the critical question: “Why are we losing money?”

Based on our comprehensive experience, we can confidently state that answering such a question cannot rely on secondary materials; instead, it requires working directly with primary data. We collect financial records, contracts, and other evidence, then model and analyze this data to establish facts and draw impartial legal and financial conclusions.

Such reports are of critical importance in improving the governance of state-owned companies. As the Prime Minister stated during the parliamentary Q&A session on January 15, 2025: “… this report serves as a highly instructive document for the future […]. It also highlights how critical issues, problems, and risk management within the company should effectively reach the general meeting.”

The Nordica special audit was conducted by WALLESS partner Merit Lind-Tsoganoff, and adviser @Katrin Alliksaar, in cooperation with Ernst & Young Baltic AS.