Just over a year ago, in front of a group of entrepreneurs and municipal representatives from Malå and Skellefteå, Christoph Svahn spoke about his plans to invest in Malå and northern Sweden.
In March last year, a group of business owners, educational providers, and representatives from Malå and Skellefteå municipalities convened at the Scandic hotel in Skellefteå for a productive discussion on current and future collaborations.
The event encompassed a vibrant trade show and networking sessions, fostering valuable connections and generating excitement for the potential growth of the existing partnerships. With 14 Malå companies already engaged with diverse counterparts in Skellefteå, there was a palpable sense of anticipation about further enhancing these collaborative efforts.
Another agenda item that sparked hope was the presentation given via video link by Christoph Svahn, a native of Malå. He said that he was currently in Dubai and had been involved in the finance and real estate industries since the early 2010s.
He expressed his intention to invest in northern Sweden, something he had been planning for the past ten years. Previously, his focus had primarily been on Umeå or Sundsvall, but now he believed the circumstances were right to invest in this region as well, specifically in Malå.
Norrkronan's establishment in Malå has raised many questions. The properties that Norrkronan bought are all centrally located in Malå and are therefore important for social cohesion and the town's well-being.
He is actively involved in numerous businesses, and during the gathering, he emphasized that his company has excellent access to the Swedish capital markets due to strong connections in the real estate industry. He said that this was something that his hometown, Malå, could now benefit from.
– I am also deeply committed to the community development in Malå, where a lot of positive developments are currently taking place. I am actively seeking out promising investment opportunities, and as a proactive individual, I am known for delivering results, explained Svahn.
Around the same time, his company, Norrkronan i Västerbotten AB, acquired three properties along Storgatan in Malå. Furthermore, another one of his companies, AXT Investment AB, leased the former premises of Handelsbanken from Malå municipality. In addition to these ventures, Svahn also purchased a vacation home near Nölviken.
The large white wooden house opposite the square was one of the property purchases that Norrkronan made in Malå. Refurbishment was started, but the work was never finished.
In the spring of 2022, the renovation work on the large white house on the square began. The property housed commercial spaces on the ground floor and apartments on the upper floor, but it had long been in a state of decay.
The renovation project continued for several months and resulted in a significant improvement to the facade. However, unfortunately, it was never completed.
According to the Ukrainian workers who were hired to carry out the renovation work, the reason for the incomplete renovation was that they did not receive the full promised wages. As a result, they stopped working. There were also issues with their employment contracts. This information was shared by the Ukrainian workers with Norran.
Anvar Osmanov grew up in Kharkiv, Ukraine, but was born in Russia and has a Russian passport. This made it difficult for him to stay in Ukraine when the war broke out, while he could not imagine going to Russia and perhaps being forced to fight against his adoptive country.
We have spoken to several of these workers, and they all have similar stories. One of them is 25-year-old Anvar Osmanov from Kharkiv, whom Norran previously reported on. He was working for the house manufacturer Grönbo in Bjurträsk but was facing imminent deportation because he holds a Russian passport, and the Swedish Migration Agency (Migrationsverket) did not consider his reasons for staying in Sweden to be sufficient.
Roman Lupashko and Anvar Osmanov both got jobs at house builder Grönbo in Bjurträsk after stopping working on the properties in Malå. However, Anvar was deported from Sweden at the beginning of the year.
Anvar Osmanov and his friend and colleague Roman Lupashko revealed that they commenced working on property renovations in Malå in May of last year. They persevered for approximately four months before eventually giving up.
– We were waiting for a contract from a person named Christoph Svahn, but it never materialized. During the initial weeks, we found ourselves in a predicament as he kept assuring us, 'Continue working, and you will receive your contract within two or three weeks, recounted Anvar Osmanov.
– However, the following week, he repeated the same promise, yet we did not receive the full payment. Consequently, we felt trapped, he concluded.
They explain that they received some portion of their wages but not the full amount. Anvar states that he is missing approximately 30,000 kronor while Roman claims to have lost around 8,000.
The workers refurbishing the properties in Malå. The work continued for several months, but then the dissatisfied workers left.
What did Svahn say when you requested your payment?
– We tried to get in touch with him, but he was always very busy, says Anvar.
They said there were around eight individuals in total working on the property renovations in Malå, with most of them being from Ukraine.
In addition to the large white house, they also worked on the former premises of Handelsbanken, a residential building on one of the properties, and Svahn's private vacation home.
Roman Lupashko comes from Odessa in Ukraine. He worked for about four months for Christoph Svahn's company in Malå before he got tired and looked for something else.
– For us, it was a very difficult situation because we have families in Ukraine and needed to send money to support them. I believe he was aware of that, says Anvar.
In hindsight, what particularly galls Anvar is that he wasted four months of his time in Sweden working for Norrkronan. If he had started earlier at Grönbo, he would have accumulated enough employment time to transition from being an asylum seeker to a labor immigrant, thereby increasing his chances of staying in the country.
– Because Christoph didn't keep his promises, I lost a significant amount of time that meant it wasn't enough for me to be able to stay in Sweden with my new job, says Anvar.
In January, Norran reported on Anvar Osmanov who worked in Bjurträsk but was to be deported from Sweden because of his Russian passport. Shortly thereafter, he was forced to leave the country.
Neither he nor Roman Lupashko anticipate receiving any payment. However, one individual who hasn't given up is their former colleague, Georgiy, who wishes to remain anonymous (Georgiy is not his real name).
Georgiy recounts that he worked on the construction projects for a period of over eight months, taking on the roles of coordinator, advisor, interpreter, and chauffeur for Svahn. According to Georgiy, Svahn now owes him nearly 250,000 kronor in unpaid wages.
– I had the other guys in mind, trying to ensure they received their wages, and I was the last in line, so I incurred the greatest loss, laments Georgiy, adding:
– He made excessive promises and delivered on almost nothing.
The plots look abandoned now work on the properties has been suspended. This is the outside of one of the houses.
Georgiy and another colleague have sought the assistance of a law firm to recover their unpaid wages from their employer, Northrock Investment Group, another one of Svahn's numerous companies.
Initially, their legal representatives sent a letter to the company in hopes of reaching an amicable settlement. However, after waiting for several months without receiving a response, they have now filed a lawsuit application with the Stockholm District Court.
According to the lawsuit application, the company not only failed to pay significant portions of Georgiy and his colleague's wages, including their complete holiday pay, but they are also accused of neglecting to remit any income taxes or social contributions on their behalf.
The lawsuit application includes two alternative claims based on the calculation of their employment tenure. For Georgiy, the claimed amount ranges between 380,000 and 566,000 kronor, while for his colleague, it ranges between 178,000 and 307,000. There are also uncertainties surrounding the issue of termination, including the timing and whether proper notice was given.
Looking back on what has transpired, what is your opinion of Svahn's behavior?
– I believe he bit off more than he could chew and money has a way of running out. However, the worst thing he did was leaving all of us helpless at a very difficult time, says Georgiy.
There were high expectations when Norrkronan established itself in Malå. Now many Malå residents are wondering what will happen to the properties in the center.
For several months, Norran has been trying to secure an interview with Svahn to allow him to address the criticism. When we finally succeed, he states that the purpose of his investments in Malå was - and still is - to do something positive for his hometown.
However, when the real estate market took a downturn, his company faced liquidity issues.
Svahn provides a somewhat contrasting narrative of the events that unfolded when the work was halted. According to him, it was the employer who decided to stop the work due to financial difficulties, and alternative job opportunities and free accommodation were offered to the workers.
Svahn asserts that most of the workers were actually employed through a staffing agency, a claim that is contradicted by both Georgiy and his legal representatives, as well as the employment contracts reviewed by Norran.
Two of the workers have filed a lawsuit application with the district court to recover unpaid wages, holiday pay, and damages, which amounts to significant sums of hundreds of thousands of kronor. What's your take on this?
– That is correct, and we are dealing with it. I don't want to comment on individual employees, but we will find a solution. We had different perspectives on the number of hours worked, for example. However, it will be resolved in court. We will do our utmost to reach a compromise as quickly as possible, says Svahn.
Do you believe you have fulfilled your responsibilities as an employer in this case?
– Certainly, if they are dissatisfied, it is regrettable, and I apologize for that. Given the circumstances, it could have turned out much better, and I feel very remorseful that it did not go as planned.
As the person responsible for ensuring their wages, what are your thoughts on the fact that most of the workers came from Ukraine with the goal of supporting their war-affected family members back home?
– As soon as we realized it was not feasible, we offered them new job placements. It is evident; I have a strong affinity for Ukraine, and I deeply care about these individuals. However, it didn't work out, and we couldn't provide permanent employment for everyone.
Regarding taxes and social contributions, Svahn says:
– Once we agree on the number of hours worked, everything will be precise and accurate.
Christoph Svahn
Christoph Svahn, 35, grew up in Malå. After completing secondary school, he moved to Umeå and later settled in Stockholm. He also started studying at the London School of Economics but did not graduate.
Throughout his professional career, Svahn has been involved in business ventures, particularly in the real estate and finance industries. According to Allabolag, he is currently active in 39 companies and has previously held positions in an additional 106 companies.
Since last year, Svahn has once again registered as a resident of Malå. In connection with this, he had extensive plans to invest in Malå, including the purchase of the Tjamstananläggningen and the construction of a new swimming facility.
NÄSTA DEL
Malå municipality is demanding nearly 50,000 kronor in unpaid rent from Svahn's company, a debt that has now been sent to a collection agency.
– I feel like I've been deceived, says the former property manager at the municipality.