The former CEO of Folkhälsan, Georg Henrik Wrede, invested in 250,000 € worth of shares in an Estonian company against Folkhälsan's internal investment principles, without informing the board and against the advice of the finance department. The full details of the investment are being investigated further.
On 12 January 2024, Georg Henrik Wrede resigned from his position as Folkhälsan´s CEO, due to a confidence crisis. Folkhälsan immediately launched an external investigation into the incident. The investigation shows that in September 2023, Wrede made a CEO decision to invest 250,000 € worth of shares in an unlisted, newly founded Estonian company called United Pre IPO Capital AS.
Folkhälsan’s CFO advised Wrede against making investments of this nature, but Wrede chose to proceed with the investment without further approval by the organisation or Folkhälsan's board of trustees. According to Folkhälsan's instructions, the CEO should also have reported the investment to the board of the Samfundet Folkhälsan but failed to do so.
At the beginning of 2024, Wrede had also decided on an additional investment in the company, but this was not financially completed, and the Administrative Board overturned the decision. In connection with this CEO decision, the investment was brought to the attention of the Folkhälsan trustee organisation.
As a result, Folkhälsan is now the majority shareholder of United Pre IPO Capital. The minority owner is a company in Estonia. Folkhälsan, together with legal and financial experts, is currently investigating alternatives regarding the ownership of the company. United Pre IPO Capital reportedly aims to develop a health application. Folkhälsan cannot comment on the realism of the company's plans.
According to its investment strategy, Samfundet Folkhälsan does not invest directly in unlisted companies abroad; investments are always made through funds after careful screening. Folkhälsan diversifies its investment risks and would normally never become a majority shareholder in such a company.
The thorough investigation continues to ensure that nothing illegal took place in the process. The financial damage at this stage is estimated at the initial investment of 250,000€.
Former CEO Georg Henrik Wrede has been willing to co-operate and share background material with Folkhälsan.
More information:
Siv Sandberg, Chair of the Board of Samfundet Folkhälsan, siv.sandberg@folkhalsan.fi
Marcus Rantala, Treasurer, Samfundet Folkhälsan, marcus.rantala@gmail.com
