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Ceturtdiena 22.02.2018 | Name days: Rigonda, Adrians, Ārija
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Four suspects announced in cancelled train procurement case

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULatvian State Police has identified four former board members of Pasažieru vilciens as suspects in the cancelled train procurement case.

SP press-representative Toms Sadovskis has confirmed that the Economic Crimes Prevention Office had, indeed, identified four persons as suspects in this case in December 2014.

Sadovskis did not mention the names of those held suspect. He did, however, confirm that properties of these people have been arrested. According to information from LETA, suspects are the former Chairperson of Pasažieru vilciens and three board members – Edmunds Kancēvičs, Jānis Pētersons and Mārtiņš Jirgens.

Sadovskis confirmed that all suspects are kept under house arrest.

As it is known, having reviewed materials submitted by Transport Ministry Prosecutor General’s Office had decided to launch a criminal process in March 2013. Authorities discovered that the decision of the board of PV to sign the contract with the Spanish Construcciones y Auxiliar de Ferrocarriles (CAF) on 2 April, 2012 bears signs of criminal breaches as stated in the Criminal Law. The criminal process was later handed to the police for pre-trial investigation.

Latvia had originally announced a massive procurement projects at the beginning of December 2009. It was planned to spend EUR 204,293,540 on the procurement of 34 electric trains and 7 diesel trains. The second half of the contract provided for continuous maintenance of said trains for 30 years. The total value of this contract was EUR 610.76 million. The new trails were supposed to have been produced by August 2015.

In April 2012, CAF and PV signed the contract regarding the supply of new trains to Latvia. It was later discovered that contract signed by Freivalds’ PV management board did not comply with the initial requirements, which put at risk the allocation of co-funding from EU funds.

The management board of PV was dismissed later in May 2012. A shareholders meeting was called in October 2012. It was during this meeting that it was decided to turn to law enforcement authorities in order to assess the legality of the previous management board’s actions.

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