Leonids Loginovs

The Riga Free port Board with its 36 members, including Leonids Loginovs and his wife Irina Gortikova, has made deals on vehicle use that are not beneficial to the state, breaking the Law on Prevention of Squandering of the Financial Resources and Property of the State and Local Governments, Pietiek reports.

Conditions of the deal provide that the employee pays a very small car rent price of 12-18 LVL/month, depending on the model of the car, as well as additional fee for fuel consumption and 4% of the actual repairs. This mainly applies for new and very expensive cars – for example, during the last winter, Loginovs and his wife were using BMW jeeps that were purchased for the free port’s money.

The Corruption Prevention and Combating Bureau (CPCB) uncovered the use of staff cars for the personal use of employees in its investigation. The bureau requested additional information from the Riga Free port Board led by Loginovs, to decide on the initiation of proceedings in relation to administrative violations.

Therefore, the CPCB has uncovered in its investigation that the Board of RFP does not comply with the regulations stated in the Law on Prevention of Squandering of the Financial Resources and Property of the State and Local Governments, which states that vehicles that are owned by the municipality or the state, this includes operative vehicles, can only be used in service and work duties.

The CPCB informed the Prime Minister about the uncovered violations on June 6, as well as ministers of Transport, Economy, Finance and Environmental Protection and Regional Development, which have delegated representatives in the Boards of free ports.

Not only Loginov’s wife found a well-paid job at her husband’s led Board of RFP, but Loginov’s daughter, son-in-law and nephew. It is mentioned in the conclusion signed by the Chief of CPCB Jaroslavs Strelcenoks, which is in the hands of Pietiek, that Loginovs, as an employer, made additional agreements in employment contracts with a number of free port officials, including his wife, who leads the port’s External Relations and Administrative Department. These agreements provide that the mentioned employees receive bonuses for work results equal to 0.1% of actual operating revenue (net turnover).

It is also concluded that all port employees were being paid additional 50% from their base salary every month from 2010 onwards. In relation to Loginov’s authority in the question on deciding about his wife and daughter [Sanita Odinec, who works as the Chief Specialist in Gorbatikova’s led department] he delegated this to his deputy; therefore, as the CPCB believes, «formally preventing a conflict of interests in L. Loginovs’ management».

When assessing Loginovs’ , his wife’s and many other officials’ bonuses, the CPCB concluded that «the total additional earnings of the mentioned officials are larger than the base salaries stated in their employment contracts.» For example, Loginovs himself earned 37 686.50 LVL in 2011, and 18 846.27 LVL more in bonuses alone, and 43 519.88 LVL as award money that make up 0.15% of the port’s actual operating revenue.

The CPCB concludes the list of facts about award money Loginovs paid to himself and his employees in RFP during many years with information that the bureaus was forced to close its criminal proceedings in relation to these violations because of lack of evidence two years ago. During CPCB’s investigation in 2007, it was determined that Loginovs issued «69 orders about paying awards to himself and his relatives on a total amount of 232 203.11 LVL» from December 2003 to 2007, violating the Conflict of Interests Law.

On January 8, 2009, the CPCB made the decision to initiate criminal proceedings based on the uncovered facts that Loginovs was involved in a conflict of interests, because during the period from 2002-2009 he took active part in making decisions that were of material interests to himself and his relatives.

Criminal proceedings were initiated shortly after Normunds Vilnitis was appointed as the Chief of CPCB. A little over one year later – July 14, 2010, the decision to close the proceedings was made, because «CPCB investigator concluded that no crime is committed by the manager of RFP L.Loginovs.»

Ref: 103.109.109.2801