Latvia IT Procurement Fraud: Ministers Ordered to Vet Staff | EUR 1.5M Case
Riga – Latvian Prime Minister Evika Siliņa stated Tuesday that individual ministers are responsible for ensuring their ministries do not employ IT specialists potentially implicated in ongoing police investigations into IT procurement fraud, estimated at €1.5 million. The Prime Minister’s comments followed a government meeting addressing the fallout from recent arrests of state officials and private sector employees.
Siliņa indicated she currently lacks specific information regarding the employment histories of IT personnel within each ministry, emphasizing the responsibility lies with each minister to proactively investigate and address any potential conflicts. “But each minister is responsible about the way they act in a given situation, and clarify the situation him or herself,” she told reporters.
Although acknowledging law enforcement’s limitations in publicly disclosing details of the investigation, Siliņa asserted that ministers should be able to ascertain relevant information regarding their own departments. She indicated she does not anticipate issuing directives requiring ministers to report on their internal reviews, but reserved the right to intervene if necessary. “If ministers do not act, Silina will take action and issue such a resolution,” she stated.
Economics Minister Viktors Valainis confirmed that ministries are already taking steps to assess the situation. According to Valainis, the Economics Ministry has initiated a request for information to inform further decisions, and he believes other ministries are following suit. “From what I have heard, my colleagues at other ministries have done the same,” Valainis said.
The response comes after the Progressives party announced plans to investigate potential violations in IT procurement within ministries under its control. Transport Minister Atis Svinka stated Monday that the review would include assessing whether companies linked to the fraud case participated in project development.
The investigation, launched by the State Police in collaboration with the European Public Prosecutor’s Office (EPPO), has already led to the suspension of two high-ranking officials. Ainars Biders, a procurement specialist in the Transport Ministry’s Information Technology Project Management Department, was suspended Monday following his detention in connection with the fraud. Similarly, Edvins Balsevics, State Secretary of the Smart Administration and Regional Development Ministry, has been suspended, with advisor Sabine Spurke citing “public interest following media reports about his possible involvement in illegal disclosure of limited-access information regarding IT procurement.”
Last week’s detentions included 21 individuals, including Biders, former State Digital Development Agency director Jorens Liopa, and Aigars Ceruss, owner and head of Corporate Solutions Group. The investigation centers on allegations that an organized group engaged in large-scale fraud and money laundering related to at least six IT procurement projects funded by the European Regional Development Fund.
Authorities allege the group colluded to predetermine procurement winners and illicitly shared profits, with assistance from public officials. The investigation is ongoing.