bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 23.07.2018 | Name days: Magda, Magone, Mērija
LatviaLatvia

Volkswagen dealers had organized procurements in officials’ stead

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUE-mail correspondence of Volkswagen dealers reveals that companies had been organizing public procurements on their own.

According to information acquired from an e-mail correspondence, De Facto programme reports that Volkswagen dealers in Latvia had written all the technical specifications for required vehicles on behalf of officials. They had also asked their potential competitors not to participate in organized procurements.

Nearly half of the cars that were procured by Liepaja City Council or its subsidiaries over the course of 2007-2012 were supplied by Volkswagen dealer in Latvia – SD Autocentrs. The correspondence with the dealer reveals that the company likely did not have to work hard to win procurements. It can be assumed that SD Autocentrs had helped itself during procurements: written technical specifications, found fictive participants, and had supplied the necessary vehicles in the end.

For example, four years ago, one of SD Autocentrs employees had sent a letter to Liepajas energija: «Greetings, in the attachment I have prepared specifications for you. Once you have announced it, please let me know and I will prepare offers for myself and other participants. Other participants could be the last time [Competition Council’s informant] and Venta motors. […]»

A couple of weeks later, this employee had sent e-mails to other Volkswagen dealers in Latvia. It is likely that the goal of this was to ensure there would not be a competitor who would offer a lower price. «[…] Client specifications were prepared by me and cars are on their way from the factory. Fleet offer has also been prepared, so please take into account our work. […]»

The Volkswagen cars parked outside of Liepaja municipal police department had been procured by SD Autocentrs. In 2012, one of SD Autocentrs’ employees had sent a letter to other Volkswagen dealers in Latvia. In this letter he noted: «I would like to inform you that after long talks Liepaja municipal police approved the procurement of3 cars and we have jointly developed technical specifications for this procurement, so we would like to ask you to support SD Autocentrs in this procurement and not submit your own offers.»

Unfortunately for SD Autocentrs, its victory in this particular procurement had attracted the attention of Latvian Competition Council and Corruption Prevention and Combating Bureau. It is now known that SD Autocentrs’ employee’s e-mail was written retrospectively: «In the attachment I have sent you documents for the procurement in Liepaja Special Economic Zone. […] This procurement was announced with May 23rd and the deadline for submission in May 27th. My proposal submission date is May 24th, that of Venta motors is May 26th, yours is May 25th, so do put May 25th, 2011 everywhere you need to. […] As you can see, the procurement is being organized retrospectively. This is why I would like to ask you to compile everything you need to as soon as possible. […] Cognac is on me!»

Mayor of Liepaja Uldis Sesks believe «the procurement had been legally accurate and economically sound. I do not have any documents to prove it had been organized in retrospect. We had performed an assessment of the employees who had held the procurement. There was nothing to confirm that they had abused power and caused losses for any of the institutions.»

Unlike Sesks, CPCB believes four members of the procurement committee in Liepaja are guilty of forging documents. However, the criminal process had to be concluded because of limitation period.

On top of that, one of the procured cars – Volkswagen Phaeton – has become Sesks’ official car. Sesks had once been one of the managers and owners of SD Autocentrs, though the company had a different name back then.

Correspondence of dealers reveals that there had likely been fictive procurements in Liepaja and other municipalities, like Kuldiga and Aizpute.

In addition, it seems dealers had formed good relations with managers of state owned companies as well. For example, it is possible that corruptive schemes had been realized by the previous board of LTV seven years ago. Other e-mails say dealers had also agreed on prices they would offer.

CC has fined the companies that were part of the cartel. Officials of state and municipal companies will be investigated by CPCB. No information is currently available on any plans in regard to the possible measures against officials.

Ref: 102.109.109.6371


Leave a reply

Nearly 10% of HIV infected in Latvia are youngsters

Latvia is currently the leader among newly uncovered HIV cases in Europe. On top of that, nearly 10% of all HIV infected are youngsters, says public health specialist Baltic HIV Association member Anda Ķīvīte.

In pictures: Large wildfires in Sweden continue

In Sweden, record summer temperatures and weeks without rain have caused series of wildfires across the vast country.

Lursoft: catering sector in Latvia – how much industry leaders earn and pay in taxes

Using a study and compiling data on companies’ business activities for the past three years, Lursoft wanted to find out if it is true catering companies in Latvia work with losses, and what their tax contribution is.

Shooting attack in Canada claims lives

A shooting attack has taken place in Toronto, Canada, with two people having been killed died and 13 others injured.

Farmers in Estonia active in Open Farm Day

Estonian farmers have held their fourth Open Farm Day as over 250 farms in the Baltic country invited everyone interested to experience growing and making of domestic food and agricultural products.

Police commence investigation of an offshore network owned by Lembergs’ daughter

Latvian State Police has commenced an investigation following journalists’ publication of materials about an offshore network owned by suspended Ventspils Mayor Aivars Lembergs’ daughter.

Polish Sejm rushes to change defiant chief Judge of Supreme Court

Poland's legislators have passed rules to hasten the changing of a new Supreme Court chief as part of far-reaching judicial reform that has been criticised by the European Commission among others.

Heat wave to continue in Latvia along with thunderstorms and heavy rain at times

The heat wave active in Latvia will not back off this week – days will remain hot and night-time air temperature will not drop below +20° C. Heavy rain and thunder will be observed nearly every day this week, according to Environment, Geology and Meteorology Centre.

Bulgarian parliament opposes readmission of migrants from EU countries

Bulgarian parliament prohibited the its government from signing bilateral agreements with other European Union member states on readmitting migrants first entered the bloc in Bulgaria.

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.