Latviski English По-русски
Sunday 22.07.2018 | Name days: Marija, Marika, Marina

Penalty presented in one of Latvenergo's bribe episodes

(No Ratings Yet)

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.


Leave a reply

Week in Lithuania. Liberals ex-leader fails to recover confiscated cash

Eligijus Masiulis, a former Liberal Movement leader on trial in a major political corruption case, has failed to recover cash that was found and seized during searches of his home.

BNN summary of the week: open presidential election in Latvia and no more plastic bags for shoppers

BNN offers a summary of this week’s topical news in a variety of categories: Future; Change; Fight; Decline; Business; Progress.

SRS: cash register reform still stagnates, but has become much faster than it was last year

The cash registers reform continues stagnating. However, it has become much faster than it was a year ago, as reported by State Revenue Service.

Specialists to search for solutions to topical environmental problems in Ventspils

On Friday, 20 July, a meeting was held between Ventspils Commercial Port representatives and specialists from State Environment Service.

Children with functional disorders to receive services financed by EU funds

Child invalids will have access to social services intended to improve their social skills and mobility. More than EUR 4.2 million has been allocated for this goal from the European Social Fund, as confirmed by Latvia’s Central Financing and Contracting Agency.

Producer price level in industry up 4.3% in Latvia

Compared to June 2017, the average level of producer prices in Latvian industry increased by 4.3 % in June 2018. Prices of products sold on the domestic market rose by 4.8 % and those of exported products by 3.7 %.

Total tax debts in Latvia in July – 1.212 billion euros

At the beginning of July total tax debts in Latvia, including outstanding debts, halted debts and debts applied with repayment term extensions, accounted for EUR 1.212 billion, which is 0.8% less than a month prior, according to data from the State Revenue Service.

Survey: every third Latvian resident has received illegal loan offers

Nearly every third resident in Latvia or 31% of respondents admit having received offers to use illegal loan services, as concluded in a survey performed by Latvian Alternative Financial Services Association and SKDS.

Libya opposed to EU's idea to establish migrant centres in North Africa

Libya is against the solution of the European Union to set up migrant centres in the North African country as a means to keep migrants from arriving in the bloc and Libya would not be convinced with financial support, its Prime Minister Fayez al-Sarraj has noted.

Arrest warrant on Catalan ex-President cancelled by Spain

The Supreme Court of Spain cancelled a European arrest warrant for former Catalan regional leader Carles Puigdemont, as Germany refused to extradite him to face accusations of rebellion for declaring the independence of Spain's region, Catalonia in 2017.

Latvian government plans to allow handing expired food to charity

Latvia’s Agriculture Ministry has prepared amendments to the Law on the Supervision of the Handling of Food that provide permission to hand over certain types of food products to charity after the end of their expiry date.

Estonian industrial producer prices up 2.9% since June 2017

Estonian industrial producer price index has risen by 2.9% between June 2017 and the first summer month this year, resulting in an increase of export prices as well, Estonian statisticians have estimated.

Putin urges NATO to quit «irresponsibly» developing ties with Ukraine, Georgia

Russia's President Vladimir Putin cautioned NATO against developing deeper relations with Ukraine and Georgia, evaluating such a policy was irresponsible and would have consequences for the military alliance.

Latvian parliament not in a hurry to support president Vejonis for a second term

Political parties represented in the Saeima are not eager to support President Raimonds Vējonis for his remainder for a second term.

Weather in Latvia will remain warm and even hot at times

Weather in Latvia in the nearest couple of days will be dictated by a cyclone. Because of that the sky will be partially covered by clouds; thunderstorms are also expected, as reported by State Environment, Geology and Meteorology Centre.

Hungary sued in EU Court for criminalising help to illegal immigrants

The European Union's executive body has stated that a law in Hungary that criminalises support for illegal immigrants is in breach with EU law and Hungary has now been referred to the European Court of Justice for the alleged non-compliance.

Estonians buy alcohol in Latvia; country loses EUR 20 million in six months

Latvian stores located close to the Latvian-Estonian border have sold 1.6 million litres of strong alcoholic drinks in the first half year of 2019. This means Estonia has lost more than EUR 20 million in taxes, according to data from Association of Estonian Alcohol Producers and Importers.

Lithuania’s election watchdog slams ruling LFGU over popular TV series

Political messages can be channeled in various ways and the ruling now Lithuanian party, LFGU has chosen a very delicate way of the communications – through a TV series featuring the beauty and the ambiance of Naisiai, a picturesque settlement in Siauliai district.

Association: around 3,3000 people know of their HIV infection but receive no treatment

HIV remains a serious problem in Latvia – around 3,300 people are aware of their status but receive no treatment and continue spreading the infection. Because of that, it is necessary to act quickly for Latvia to lose its status as HIV kingdom and limit the spread of the infection, says Baltic HIV Association, informing decision-makers and responsible officials in institutions and hospitals about the HIV/AIDS situation.

Driver shortage may force reduction of international road haulage volumes

Latvia’s road haulage companies have started experiencing shortage of drivers. On top of that, if employment conditions for residents of non-EU member states do not change, it may be necessary to reduce the volume of road haulage volumes, says Latvijas auto president Valdis Trēziņš.

Lattelecom’s turnover up 9% in first half-year of 2018

Lattelecom Group’s turnover reached EUR 98.7 million in the first half-year of 2018, growing by 9% in comparison with the same period of 2017, according to unaudited financial results.

1,140 fewer births registered in Latvia in 2017

Since 2016 the number of births in Latvia is declining again. Compared to 2016, a total of 1,140 births fewer were registered in 2017. Also, the provisional number of births registered over the first six months of 2018 (9,664 children) is by 664 children smaller than that registered over the respective period of 2017.

Citadele Bank decides to reform Lithuanian subsidiary as a branch office

Citadele Bank has decided to reform its Lithuanian subsidiary as a branch office, as confirmed in the statement the bank submitted to Nasdaq Riga.

Russian pension age hike discussed amid protest outside Duma

As the Russian paliament votes on the proposal to gradually increase he pension age to 65 for men and 63 for women, some 200 people were seen protesting against the reform in Moscow.

Corruption watchdog chief says bureau has done no illegal actions

After going through Corruption Prevention and Combating Bureau’s past investigative activities, the bureau’s chief – Jēkabs Straume – found it confusing that officers often took no appropriate actions after acquiring evidence or receiving indications regarding necessary steps.