Latviski English По-русски
Tuesday 23.07.2019 | Name days: Magda, Magone, Mērija

Prosecutor General’s Office asks KNAB investigate businessmen Krūmiņš and Valters in more detail

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULatvia’s Prosecutor General’s Office has decided to not commence a criminal prosecution of businessmen Jūlijs Krūmiņš and Haralds Balodis, as well as ex-basketball player Valdis Valters for influence trading.

The prosecutor responsible for the case has cancelled Corruption Prevention and Combating Bureau’s decision to submit the criminal process for commencement of criminal prosecution and has asked KNAB to continue its investigation, as confirmed by the Prosecutor General Office’s public relations specialist Una Rēķe.

The prosecutor mentioned the evidence submitted along with the case is not enough to commence criminal prosecution.

According to information from KNAB, some legal person had turned to court against a municipality in relation to development of a construction plan. To resolve the conflict with the municipality in a favourable way, representatives of the legal person had turned to a private person to influence an official of the municipality.

In exchange for ‘help’, representatives of the legal person had promised the private person company shares. According to information from KNAB, capital shares were handed to the private person for the duration of the project’s implementation. After this agreement, the municipality and the legal person signed a peaceful resolution in court, KNAB reports.

The bureau has not turned against any of the municipality’s officials.

According to LETA, one of the suspects in this criminal case is businessman Jūlijs Krūmiņš, who is already involved in two other criminal cases.

Krūmiņš denies being involved in a criminal case involving trade of influence. The businessman has been retired for ten years – «I haven’t bought anything, and all this is just rumours». «Something must’ve been mixed up. Maybe it’s a different Krūmiņš. I work in the business that involves building ports and moving freight. This is just some rumour again. I’ve not been called anywhere in the last half-year,» said the businessman.

The other two suspects in the criminal case are representatives of the legal person. According to LETA, these two might be ex-basketball player Valters and businessman Balodis. The news agency council not get a hold of Valters to get his comments.

The Criminal Law states that trading of influence is punishable with up to five years in prison, community service or fine.

According to information from, Balodis and Valters are former co-owners of SIA Kser. This company wanted to build a wood chip CHP plant in Jurmala. This initiative caused a scandal because there were concerns that this CHP plant would mean closure for the city’s own recently built boiler house.

Kser, which has since been renamed M7 Energy, is owned by SIA Luxtrade. The latter is owned by Dmitrijs Artjušins. Balodis owned 54.57% of shares in the company until April 2017. 22.71% of shares were owned by SIA Bepo, whose only owner was Valters until autumn 2017. In autumn 2015 Kser experienced a short term change of leadership, when Cyprus-based Uztema Holding Limited becase a 51% owner of the company for a couple of weeks.

In April 2017, reported KNAB commencing a criminal process regarding trading of influence in Jurmala. It was allowed in the publication at the time that the case may have been associated with possible corruption in Jurmala municipality’s Jūrmalas siltums’s unjustifiably increased prices in wood-chip procurement and dealings with Kser.

This case was reported widely at the end of 2016, when it became known that multiple businessmen had offered Jurmala city to supply heating energy to Kauguri from a yet non-existent wood chip CHP plant. Then the chairman of Jurmala City Council Gatis Truksnis (UGF) claimed having no insistence on signing a contract with Kser. He did say, however, that the company would have possibly produced cheaper heating energy than the municipality’s companies, reported.

On 17 November 2016 Jūrmalas siltums signed an agreement for procurement of heating energy from Kser. The latter requested signing the contract for ten years.

Kser had sent Jūrmalas siltums and agreement project, in which the company detailed the desire to sign the agreement for ten years. Jūrmalas siltums’ CEO at the time Zigurds Starks did not sign it in the end. He left his post later and claimed Truksnis had told him multiple times that the agreement should be signed. Truksnis said in response that he never forced Starks to sign the agreement, rather wanted Starks to talk with investors about a mutually acceptable solution.

Leave a reply

Current business trends in 2019 show fewer foreign investments and insolvency cases

In the first six months of 2019, there was a reduction of the number of insolvency cases in Latvia. There were also more business liquidations and fewer foreign investments, according to data compiled by Lursoft.

President: Latvia and Lithuania can agree on sea border treaty

Latvia’s president and government desire to resolve the sea border treaty issue with Lithuania soon, said Latvia’s President Egils Levits during a press conference on Tuesday, 23 July.

UK’s next Prime Minister – Boris Johnson

The British Conservative Party has elected Boris Johnson as its next leader, which will make him the next Prime Minister of the United Kingdom.

Latvian minister to check State Revenue Service head’s public statements

An inspection has been initiated by Finance Minister Jānis Reirs in regards to the public statements made by State Revenue Service director general Ieva Jaunzeme to the media and during a meeting of Saeima’s Budget Committee, as reported by public broadcaster TV3.

Volvo recalls around half a million diesel cars globally

Swedish carmaker Volvo has recalled about 500 000 cars worldwide over a faulty part in diesel car engines.

Latvijas Radio News Service objects to proposed mediation process

After multiple meetings with mediator Baiba Strupiša and members of Latvijas Radio board, the News Service of the radio has decided to reject the mediation process, as reported by Latvian public media portal

Malta receives failed Moneyval final review

Monitoring body Moneyval has found the anti-money laundering capability of Malta as being ineffective, giving the country a year to repair shortcomings or risk being blacklisted.

UK to address tanker crisis in Persian Gulf with more military

The British government will seek to develop and deploy a Europe-led maritime protection mission to protect shipping in the strategic Strait of Hormuz after Iran seized a British ship with a Latvian crew member.

Excise tax reduction on strong alcoholic drinks causes 20% surge of sales in Estonia

Two weeks after the reduction of excise tax on strong alcoholic drinks in Estonia sales in the country’s largest trade networks has surged 20%.

Latvia’s army to test UAVs from a local manufacturer

Latvia’s National Armed Forces have been supplied with UAV systems from Latvian manufacturer UAV Factory and Atlas Aerospace for testing purposes, as confirmed by Defence Ministry.

Number of airline passengers serviced in Latvia up nearly 10%

A total of 3.5 million passengers were serviced at Latvia’s international airports in the first half-year of 2019, which is 9.6% more when compared to the same period of 2018, when 3.2 million passengers were serviced, according to data compiled by the Civil Aviation Agency.

Ukrainian president Zelenskiy pulls another big election win

In the Ukrainian parliamentary election, the political party of Ukrainian President Volodymyr Zelenskiy, with 98% of votes counted, has won parliamentary majority.

Volume of alcoholic drinks produced in Latvia up 2% in five months

In the first five months of 2019, a total of 21 708 million litres of alcoholic drinks was produced in Latvia, which is 2% more when compared to the same period of 2018, according to data from the State Revenue Service’s compiled information on excise tax.

We have to be patient – Latvian minister about citizen detained in Iran

We have to be patient in the matter concerning Stena Impero tanker’s crew and the Latvian citizen who are detained by Iranian authorities. A lot depends on how political events unravel, says Foreign Affairs Minister Edgars Rinkēvičs.

Committee: potential NEPLP members’ reputation is their promoters’ responsibility

Responsibility for the reputation of potential members of Latvia’s National Electronic Mass Media Council should be taken by organizations that recommend them, said head of 12th Saeima’s Human Rights and Public Affairs Committee Inese Laizāne.

Latvia to test individual budget model to support people with mental disorders

Welfare Ministry and ten municipalities will use EU Social Fund’s co-financing to test a new approach for social service provision to adults suffering from mental disorders. In other countries this approach is known as «individual budget model».

UK in emergency meeting over Iran-seized tanker with Latvia on board

British government members, intelligence and military chefs are holding an emergency meeting over the seizure by Iran of a UK-flagged oil tanker with a Latvian crew member on board in the Persian Gulf.

Latvian lawyer and ex-judge Uldis Bērziņš killed in Mārupe

Lawyer and ex-judge Uldis Bērziņš was killed in Mārupe, Latvia, according to information from LETA.

Audit uncovers a lack of transparency in use of Latvian Agriculture Ministry’s money

Unclear accounting and use of finances, council members with ties to associations assess money allocation for associations, trips to Spain and Italy for no reason, as well as hundreds of projects with no tangible results – State Audit assess use of finances in Agriculture Ministry’s funds.

Estonian President cycles 135 km in amateur Tour de France

Estonian head of state, Kersti Kaljulaid, showed an example of active lifestyle as she cycled 135 kilometres in Étape du Tour de France on Sunday, the amateur stage of the annual bicycle classic.

Latvian minister may consider raising tax on diesel fuel to finance road maintenance

In order to find money to finance road maintenance in Latvia, the option of increasing excise tax for diesel fuel is not entirely excluded, said Latvia’s Transport Minister Tālis Linkaits in an interview to public broadcaster LTV programme Rīta Panorāma on Friday, 22 July.

Court ruling on Estonia ferry disaster seen as big disappointment

The ruling of a French court in a compensation case over the tragic sinking of Estonia ferry in 1994 has been described as a big disappointment by lawyer of the relatives of victims.

Latvian citizen among sailors of British tanker detained by Iran

Among the crew of the British tanker detained by Iran is one Latvian citizen, according to the report from Latvia’s Foreign Affairs Ministry.

Heavy rain expected in Latvia at week’s beginning; air temperature to reach +29° C

The beginning of the week in Latvia will be rainy, as low atmospheric pressure and rain clouds move through Latvia. Nevertheless, at the end of the week air temperature will reach +29 C, as reported by State Environment, Geology and Meteorology.

In Ukrainian parliamentary election, win of Zelenskiy's party coming

Ukraine has held its snap parliamentary election, where, according to exit polls, Servant of the People party lead by Ukrainian President Volodymyr Zelenskiy has won with a clear majority.