In October, officers of State Police Economic Crimes Prevention Office submitted a case to the prosecutor’s office requesting two Riga Freeport officials to be criminally prosecuted for misuse of official power, as reported by State Police press-representative Toms Sadovskis.
The police note that a criminal process was launched following the report compiled by the State Audit regarding illegal activities carried out at Riga Freeport in 2013.
During the investigation police uncovered that two Riga Freeport officials may have used official power in bad faith. With that, officers isolated a separate criminal process regarding use of official power in bad faith, which carries either a prison sentence (up to four years), community service or fine with an added restriction to take office for a period up to five years.
Two men are considered suspects in this criminal process. Officers of Economic Crimes Prevention Office submitted materials to the prosecutor’s office for launch of criminal prosecution in October 2015.
Investigation in this criminal case continues.
Riga Freeport Chairman Andris Ameriks notes that he cannot provide any comments in regards to the names of the people held suspect. «I know as much as you. All employees continue performing their duties as before,» – said Ameriks.
He did not comment on whether or not one of those people could be Leonid Loginov. At the same time, Ameriks said he is ‘absolutely certain’ that he himself is not one of the suspects.
The inspection carried out by State Audit revealed that Riga Freeport’s financial resources worth EUR 846,608 were illegally spend on bonus money, gifts, health insurance for members of the board, improperly calculated benefits, vacation money and incapacity of work.
It was also concluded in the report that the freeport’s board had wasted EUR 206,316 on inappropriate donations. EUR 1,060,039 was used to satisfy requests of private and legal persons for financial support and procurement of advertisement services, which was not coordinated with the rest of the board in due time.
SA explained that regulations demand reaching set goals by using the least possible amount of financial resources. Nevertheless, the freeport’s board, having spent EUR 1,536,701 on dock maintenance, failed to explain the actual amount of money entrepreneurs had invested.
Because of irresponsible decisions and negligent work ethics of Freeport employees, the state suffered losses worth approximately EUR 573,417, as concluded by SA. The freeport’s board also relieved cruise ships of the need to pay sanitary fees, which costs the state EUR 2,959,573. The port’s management also did not use measures listed in tug lease contract to collect rent fees worth EUR 712,858. Little to no work was carried out to secure the return of debts worth EUR 176,436.
The management board’s chosen solution to the Rīgas jūras līnija insolvency process cost the Freeport at least EUR 7,541,220, according to SA.
Considering all of the above and multiple other violations uncovered by SA over the years, state representatives in the board of Riga Freeport had previously agreed to request Andris Ameriks to organize an extraordinary meeting of the board in order to discuss the possibility of dismissing Leonid Loginov from his post. No such decision was made during the meeting.