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Tuesday 10.12.2019 | Name days: Judīte, Guna

Corruption watchdog accuses Riga 1st Hospital board member of attempted fraud

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU

Riga 1st Hospital board member Genādijs Sevastjanovs

Latvia’s Corruption Prevention and Combating Bureau (KNAB) has asked the prosecutor’s office to raise charges against Riga City Council deputy and Riga 1st Hospital board member Genādijs Sevastjanovs for fraud attempt.

KNAB also requests charges to be raised against businessman Aleksandrs Kreicers and once the technical director of his construction company Torenberg Magnus Kurpuševs.

Without revealing any names, KNAB reports that the prosecutor’s office has been asked to raise charges against a hospital official and two private persons. The three people in question are accused of fraud attempt in a group. The official and one of the private persons is asked to be accused of forging documents and use of forged documents. The official is also asked to be prosecuted of abuse of official power.

KNAB believes that the official and one of the private persons had agreed to forge procurement documents once work included in the 2018 procurement was done.

For a procurement made in 2019, the official had organized a procurement in March for the services that were performed in 2018. All three suspects had agreed on criminal intent aimed at illegal acquisition of municipal budget funds. The official and one of the private persons had signed a contract that contained false information.

KNAB believes the possible damage that was caused to the municipal budget reaches EUR 9 495.

According to information from, the company involved in Riga 1st Hospital criminal case – Torensberg – was founded in 2006 with a base capital of EUR 8 526. The company is owned by Marija Kinaste. Kreicers was a member of this company’s board between 2015 and 25 April 2019. In 2018 the company’s turnover was EUR 10.542 million. The year was concluded with profit of EUR 314 502.

Public broadcaster LTV had previously reported that Torensberg had performed multiple projects at Riga 1st Hospital.

Several years ago Kreicers was a suspect in the so-called Children’s Hospital criminal case. The criminal case is currently viewed by a first instance court.

Riga 1st Hospital is completely owned by Riga City Council. The hospital’s turnover was EUR 15.29 million in 2017, whereas profits reached EUR 191 433, according to information from The hospital’s board includes Natālija Zlobina, Andrejs Pavārs and Sevastjanovs.

Sevastjanovs’ declaration for 2018 mentions that that the hospital’s board member Zlobina is his daughter.

Sevastjanovs’ wage as board member in the hospital reached EUR 54 108 last year. He was also paid a wage of EUR 20 400 for his work in SIA Medasko. He also received dividends from Medasko worth EUR 3 686. Riga 1st Hospital’s board member also received EUR 12 205 as benefits from the State Social Insurance Agency last year. His last year’s income was further increased by his pension of EUR 7 469. He also received dividends worth EUR 106 900 from SIA X-Dental. He also received EUR 16 544 from Luminor Latvia open pension fund. His wage as Riga City Council deputy was EUR 12 372.

Sevastjanovs also owns land and real estate in Riga, as well as 38 shares worth EUR 1 002 in SIA Medasko and 40 shares worth EUR 1 560 in SIA X-Dental, as well as a Mercedes Benz Gle 350 D 4Matic (2018).

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