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Tuesday 20.03.2018 | Name days: Made, Irbe

Court orders Loginovs and Pečaks to pay back illegally spent finances

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RURiga Regional Court has ordered former Riga Freeport CEO Leonids Loginovs and his deputy Aigars Pečaks to repay illegally spent finances in the amount of EUR 856,951.

On Tuesday, 18 September, Riga Regional Court applied a fine of EUR 45,600 to Loginovs and EUR 34,200 to Pečaks for abuse of official power.

Loginovs also has to pay back EUR 207,856 from illegally spend finances, and Pečaks has to pay back EUR 378,750. On top of that, the two have to pay back an additional amount of EUR 270,345 together.

Loginovs is also prohibited from taking post in state and municipal institutions and capital associations for a period of three years and six months. The same restriction has been applied to Pečaks for two years and eight months.

On 15 May, an appeal process was launched for this criminal case. Following a request from the prosecutor, court debates have been scheduled for September.

The prosecutor was the one who submitted an appeal in this case. Riga City Northern District Court acquitted Loginovs and Pečaks.

The court’s ruling can be appealed within ten days after publication of the full text, which is planned for 3 October.

The criminal case against Loginovs and Pečaks was launched for abuse of official power, performing illegal donations and paying bonuses. The accused deny their guilt in the incriminated crimes.

During court debates, the state prosecutor requested a fine for Loginovs worth 120 minimal wages or EUR 44,400, as well as application of a prohibition to take managing post in state and municipal institutions for a total of three years and six months. For Pečaks, the prosecutor requested a fine of 90 minimal wages or EUR 33,300, as well as prohibition to take managing posts in state and municipal institutions for a period of two years and eight months.

After the audit at Riga Freeport, the State Audit turned to law enforcement institutions to report on multiple violations that were discovered there. The State Audit noted that because of improper management, losses worth at least EUR 573,314 appeared. Officials of State Audit also reported that the freeport’s management had unreasonably spent EUR 538,214.

LTV had previously reported that criminal prosecution launched against Loginovs is associated not just with the payment of bonuses, but two other episodes that resulted in major material damages as well.

According to data from contracts signed by Loginovs with Liepaja Maritime College, the freeport transferred LVL 190,000 (EUR 270,345) as donations between 2009 and 2013, as reported by the porgramme. In 2009, following Loginovs’ order, International Association of Ports and Harbors was transferred USD 10,000 (EUR 9,041) to assist Japanese ports that had been impacted by the tsunami. Evidence was acquired during the investigation that proved Loginovs was freely using the freeport’s finances over the course of four year, causing financial damages worth more than EUR 277,000, as reported by the programme.

Last year it became known that State Police Economic Crimes Prevention Office commenced another criminal process for possible criminal activities at Riga Freeport. The criminal case was launched based on conclusions made by State Audit. There are no suspects at the moment.


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