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Ceturtdiena 21.09.2017 | Name days: Matīss, Modris, Mariss

Penalty presented in one of Latvenergo's bribe episodes

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Аuthor: Lita Krone/LETAThe Prosecutor General’s office has presented a Turkish citizen with 12 000 LVL penalty in the so called Latvenergo bribe episode. The Turkish Gama Company was presented wit ha 850 000 LVL fine.

Pre-trial proceedings are being carried out by the Prosecutor General’s office against multiple former managers of Latvenergo and other related individuals. Allegations have been presented to seven individuals. The Corruption Prevention and Combating Bureau (CPCB) called to begin proceedings against a total of 17 individuals last autumn. Press-secretary of the prosecutor’s office Aiga Senberga reports that Prosecutor Viorika Jirgena has concluded that the large number of episodes in this criminal case create additional obstacles for completing the investigation within a reasonable period of time. This is why the Turkish episode and the separate case related to the Turkish Gama Company were divided into two separate criminal proceedings for influential bargaining in Latvenergo‘s organized procurement process for the reconstruction project of Riga TEC-2.

Given all of the above, separate criminal proceedings were initiated against a citizen of Turkey – Özgür Umut Eroğlu. The same was done in regard to the Gama Company.

Based on the information about the ongoing investigation, “Consultant L” was promised to be paid 3.4% (7 933 688 LVL) for signing a contract in the interest of Gama Company. He was supposed to use his professional and social post in order to illegally affect the work of Latvenergo officials work in the April 3, 2008 announced TEC-2 reconstruction project’s procurement process.

This allowed Gama to gain access to information and documents from Latvenergo and use the acquired information in order to prepare an appropriate offer. March 3, 2010, Latvenergo and Gama signed the TEC-2/2 EPC agreement.

Following the signing of the agreement, Gama transferred 796 150 LVL to the bank account of “Consultant L”. No other payments were made, because the CPCB initiated criminal proceedings in the Latvenergo officials case and arrests were imposed on the illegally gained money.

The accused Turkish citizen and his Gama Company are cooperating with the investigation in the “Turkish episode”. An agreement was made through this cooperation – Gama and Latvenergo would amend the signed TEC-2/2 EPC agreement and reduce the price of the agreement by 3.4%.

Because the foreign representatives aided the investigation, prosecutor Jirgena believes it is possible to end the criminal proceedings. Mr Eroğlu is presented with a penalty of 12 000 LVL, while Gama Company – 850 000 LVL. The Turkish citizen and the company have already transferred the funds to the State Treasury.

Other episodes of the Latvenergo case are still being investigated. This means no information regarding the progress of the investigation is being released.

It was reported that the Prosecutor General’s office presented allegations to five involved individuals in the so-called Latvenergo Bribery Case.

These officials have been called to criminal responsibility for committing multiple illegal actions in regard to Latvenergo‘s organized reconstruction project.

Three individuals were presented with charges for exceeding authority for lucrative purposes, as well as accepting bribes.

A total amount of bribes received by said officials for their involvement in the Latvenergo reconstruction project was 5 432 989 LVL.

Although the CPCB does not reveal the names of the involved officials, it is known that former Latvenergo president Karlis Mikelsons is one of them.

In total, the CPCB had called to initiate criminal proceedings against 17 individuals for bribery in the Latvenergo organized last autumn.

CPCB investigator called to initiate criminal proceedings against four former Latvenergo officials, two of them – for money laundering.

According to CPCB, former Latvenergo officials have received a total of 5.6 million LVL in bribes for the realization of different projects. Another planned bribe giving attempt was ruined by CPCB operatives. The bribe was 7.7 million LVL.

The CPCB initiated the Latvenergo case in 2010. Aside from detaining Karlis Mikelsons, Aigars Melko and Sadales tikls Chairman Ivars Liuziniks and his deputy Andrejs Stalazs, the bureau arrested Daugavpils businessman Mikhail Paladi. His company – Buvenergo serviss – had previously received multiple orders from Latvenergo.

Among the suspects is also consultant Andrei Livanovich. His Energy Consulting firm functioned as an agent of the Swiss Colenco. This company, on the other hand, was the consultant of Latvenergo‘s organized TEC-2 reconstruction project worth millions. The Swiss company had been involved in the project since its creation some eight years ago.

One person has been called to justice for providing false information in the state official’s declaration. Two more individuals were prosecuted for stating false information in a state official’s declaration and unauthorized involvement in property transactions.


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