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Ceturtdiena 17.01.2019 | Name days: Tenis, Dravis
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Court puts ex-LDz manager’s bribery case viewing on hold until autumn

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe viewing of the bribery case involving the now ex-manager of LDz Uģis Magonis in Vidzeme District Court has been put on hold until 11 September, as confirmed by Estonian businessman Oleg Osinovskis’ lawyer Jeļena Kvjatkovska.

On Thursday, 31 May, Baltic Transit Service manager Ivars Sormulis testified in court, as did the former board member of Daugavpils Lokomotīvju remonta rūpnīca Vladimirs Kirsanovs. Both witnesses were called in by the prosecution.

A total of seven court sessions have taken place as part of this criminal case.

According to the prosecution, Osinovskis gave Uģis Magonis a bribe of approximately EUR 500,000 in summer 2015 in exchange for a favourable outcome in a procurement organized by LDz Rolling Stock Service. Both accused deny their guilt.

According to materials of the case,Osinovskis’ DLRR had sent a letter to LDz Cargo and LDz Rolling Stock service in August 2014 with an offer to sell seven locomotives.

During the last session, former chairman of DLRR Aivars Keskuela said he doubts bribery-accused Magonis could have affected the procurement procedure alone.

During a court session on 6 April, DLRR board member Natālija Petrova testified that in 2015 DLRR had asked for Magonis’ assistance signing a contract with Russian Railway. She explained that the financial situation for DLRR was ‘bad and worse’ in 2014 and 2015, because Russian Railway, with which DLRR had cooperation agreements regarding repairs of locomotives since USSR era had refused to renew the contract. Petrova said the company concluded 2014 with losses worth approximately EUR 1.3 million.

She also noted that relations between DLRR and Russian Railway had only worsened in 2015 after Magonis’ arrest.

During 26 March court session, ex-LDz Rolling Stock Service chairperson Svetlana Berga testified that procurement of locomotives complied with LDz concern’s interests and was economically beneficial to all members of the concern.

During the 19 March court session, former LDz Cargo manager Guntis Mačs testified that Magonis did not influence the management of LDz Cargo about lease of any trains. He said he is not aware of any possible influence Magonis may have had over LDz Investment Council and LDz Presidents Council, without the decisions of which LDz Rolling Stock service could not have procurement locomotives from Skinest Rail.

Magonis was dismissed from his post after Corruption Prevention and Combating Bureau arrested him on suspicion of bribery. On 8 August 2015, Riga District Court put Magonis under arrest. He was later released on bail.

On 15 January, Limbaži District Court lifted the restriction applied to Magonis on leaving the country. The part of the criminal case revolving around Skinest Rail was also separated into a different case. Prosecutor Evita Masule said legal person have to be tried in the countries they are registered in. She added there is no reason to believe Estonia’s court justice system will be lenient to one of their country’s businesses.


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