The New Ernesto Preatonis plan to take the EMT mobile parking out to the world
Kerli Nõu

Up till now acting behind the shadow of Ernesto Preatoni, the community of Italians do a great business in Estonia – the Italians plan to bring the EMT mobile parking system into the outer world.

Meeting with energic Italian businessmen takes place in the elegant restaurant Cathedral in Toompea. Influenced by native customs, Riccardo Lelmi – businessman active in Estonia already for nine years - arrives late to his restaurant. Riccardo Lelmi does not get discouraged by the comments of his compatriot and business partner Stefano Pirone regarding his being late “I have become better in arriving on time”.  Stefano Ferrari, specialist of mobile telephones joins the friends and business partners with utmost retardation.

Doing mainly real-estate business, Riccardo Lelmi is the key person for Italians in Estonia. Even though his name is not known in media as was Ernesto Preatoni a few years ago, through him the money of Italian investors find its way to Estonia. Jointly with his business partner Enrico Levi, they own the biggest “accommodation in apartments” business in Estonia – Erel Group. They successfully move on also in real-estate development: under the leadership of the Italians soon two apartment-buildings in Kadriorg are ready, a new 50-apartment building is being built also in Narva, 160 apartment unit is planned to Rakvere.

Among the newest projects of the group of investors managed by Lelmi, is to bring the EMT Mobile Parking System to the outer world’s major cities, in co-operation with EMT. The control center would be located in Estonia. The manager of public relations of EMT Kaja Pino confirms that the negotiations are indeed ongoing. If and when the work will be started and signatures will be put on papers, is “music of near future”.

Wonderland of Alice

Estonia is like the “Wonderland of Alice” when it comes to doing business. The three energic Italians evidently share the opinion. They point out the simple rules for businesses here, and the good ground for starting. One can not overlook the opportunities for producing profit. Riccardo Lelmi brings and example comparing  investing in old-town apartments in Tallinn which have risen money of its owners by 30% in a short period of time: “6% of annual profitability is a great deal in Italy” he claims.  

Nevertheless, Estonia is not to become a milk-cow for Italians. Experience shows that profit earned stays in Estonia – they either start new projects or develop old ones. “Not all Italians are sex tourists or Preatonis” the men joke.  The only and one bottleneck of doing business here they find is the severe weather for southerners. Sleet and snow though will not create insurmountable obstacles on the way of these temperamental men.

Stefano Pirone – an investor partly living in Estonia – says not a single day passes in Rome without newspapers or the television mentioning Estonia in a way or another. Interest in starting a business in Estonia is raising day-to-day among Italians. Interest in visiting and investing grows among the old and the young.

According to the colourful statistics of Erel Group dealing with accommodation for tourists and business consultation, 50 italians out of 100 are interested in business opportunities in Estonia. Then one out of 50 is estimated to really start a business in Mary’s Land (the old name of “Vana Liivimaa”, later poetically of Estonia).

 

The players of today

The impetuous conversation ceases. Just for a second. The importer of Italian business Riccardo Lelmi is thinking. The question concerns other bigger doers currently living and acting in Estonia, investing money and time into local undertakings. One is clear: Riccardo Lelmi cannot speak about all names and businesses. The unwritten law makes every Italian speak for themselves.

He does mention some names though. The first name the easy-going man speaks about is Paolo Moglia who came to Estonia already in 1993 and opened his TOP Models Agency here. His favour was the success and stardom of the supermodel Carmen Kass. Moglia was the one to discover the young maiden from Paide in a department store of Estonia’s capital. In addition to model business Moglia runs restaurant business under the trademark of Da Vinci in Tallinn Old Town and Viru Keskus. There are more Italians in the food- and restaurant business though.

 For example five years ago newspapers wrote about Renzo Saviola – Italian cheese producer – buying a 57.8% share in the biggest Estonian cheese producing company Võru Juust AS, through funds connected with Trigon Capital. In 2004 he resold his share, and not many news have spread ever since.

“I recall there is someone who started arranging tourism trips from Estonia to Italy” says Riccardo Lelmi thoughtfully. Can an Italian family, having bought one apartment in the old town, be regarded as investors? According to Lelmi, not. Listening to him, one needs to have resources for at least some 20 apartments in order to be considered so.

Bank Plan

During the conversation Lelmi’s business partner in mobile parking business as well as real-estate business brings out a fine nuance on how to bring more Italian investors to Estonia. “One should open a branch of an Italian bank here” claims the man. “It would be easier to get loans and warrants, and one would not need to prove things continuously,” adds Ferrari Stefano who has been acting in the sector of technology in Estonia for three years. Hearing that, Riccardo Lelmi becomes serious. He clearly agrees with his friends. “Not that we don’t like to work with the banks situated in Estonia, but carriage of affairs is significantly more complicated,” says Lelmi.

Finished the talks, tasted the food, Stefano Pirone lights a cigar. Stefano Ferrari does the same. “We Italians like to enjoy things. Eat, drink and enjoy”  describes Lelmi the habits of the Italian community. Business is business; it is important to evaluate leisure too.


Italians add colour

-- a typical Italian investor can be described shortly with three words: rich, vigorous and definitely over his forties. Examples are easy to find. Most familiar Italian businessmen to Estonians is Ernesto Preatoni, who did business of grandiose measures. One may link his name to Ilmarine Quarter, Pro Kapital, Domina hotels and travel agency, Kristine Center, holiday resort in Egypt etc. However, his name brings up many tax fraud cases rather than other.

--  Also other Italians have added colour to Estonia. Such as the Sicilian, Giovanni Sposato who gained fame as a rake and a dashing privatizer of Estonian Railway, as well as Antonio Angotti (alias Tony Massei) connected with the same case of privatization. All these men have left Estonia by now.

-- Tension of media was risen with the case of Salvatore Grasso, where his ex-wife ordered his murder. Grasso started his business in Estonia some ten years ago with advertising business in Soov, where he left after disagreements with other co-owners occurred. He was the main shareholder and member of the board of AS Sorgentis, as well as the founder of restaurant Controvento. The partner of the deceased, Luciano de Osti, took over the running of the restaurant business.

-- The media has mentioned also Davide Bizzi, former favourite of Preatoni, who possessed 20% of the Italian business. According to the latest information he is now doing business in Cuba.

-- Even though most of the names once figuring in the centre of attention are not anymore spoken about in the Estonian media, it is estimated that some 140 Italians operate in Estonia. Some half of them happily do wage-work. One is even told to work in Hansapank.

Relations with Preatoni cold

** The “scheme-master” is not considered much of among his compatriots. Businessman Riccardo Lelmi does not make a secret out of coolness of his relations with Preatoni: “The first minutes after we met made us argue”.

** Stefano Pirone who made business with Preatoni in 1998 describes the ways of doing of this man with one single phrase: “Who is not Preatoni’s friend, is his enemy. We were not friends.”

** At this moment of time still topical court case of Ernesto Preatoni reveals accuses of tax fraud against the man, who intentionally did not register the locality of Baltic Investments Ltd and deliberately left undone the tax declarations of three years, due to which 23.9 mln kroons of tax revenues remained unpaid. He is also being accused of partial smoke-screening of the profit earned in 1997, in consequence of which other 26.6 mln kroons of taxes were not paid.

** Ernesto Preatoni evidently shares the  title of “the man of fame” together with Giovanni Sposato, who gained eclat with the scandalous privatization saga of Estonian Railways.

** In 2003 perennial prohibition of entry to Estonia of Giovanni Sposato was levied by the Minister of Internal Affairs of Estonia of the time, Margus Leivo, because “the personage may endanger the law and order of Estonia, as well as the public security”. Sposato was penalised by Tallinn City Court on 1.October 2001 for an intentional crime; he has also violated law acts concerning foreigners sojourning in Estonia.