Latvia Scraps Funding Disclosure for Construction Projects – Critics Raise Concerns

Latvia’s parliament, the Saeima, has faced criticism after removing the requirement for individuals undertaking construction projects to disclose their funding sources. The amendments to the Construction Law, adopted in late 2025, eliminate a previous mandate established by Cabinet of Ministers regulations.

The change, spearheaded by the Union of Greens and Farmers (ZZS) in coalition with Latvia First, Apvienotais Saraksts and Stabilitātei, has sparked concerns about potential implications for financial transparency and the possibility of illicit financial flows. Financial transparency advocate Sauka expressed surprise at the decision, stating, “I was extremely surprised when the proof of the origin of the money was canceled in the construction process. I think it is a big step backwards and it is not clear to me why this was done and how such an idea could come to anyone’s mind.”

Proponents of the amendments argue that the previous requirement was disproportionate, given the potential for funding sources to evolve during lengthy construction projects. Critics, still, fear the removal of this transparency measure could create loopholes for money laundering and other illegal activities, particularly given the scale of construction within Latvia.

The decision comes amid ongoing political maneuvering within the Saeima. On Thursday, March 19, 2026, the Saeima rejected a motion of no confidence in Transport Minister Atis Švinks, initiated by the opposition party “Latvia First.” While the motion was primarily focused on issues surrounding the “Rail Baltica” railway project, criticism extended to broader concerns regarding the management of the transport sector. The vote saw 48 deputies opposing the motion and 50 voting against it, with three ZZS deputies siding with the opposition.

This is the third attempt by the Saeima to remove Švinks from his position. In previous votes, individual deputies from the ZZS, a key coalition partner, had also supported motions for his dismissal. The ZZS also recently supported referring an opposition proposal to withdraw from the Istanbul Convention to the Foreign Affairs Committee, demonstrating its influence within the ruling coalition.

The amendments to the Construction Law were approved with 57 votes in favor, coming from ZZS, Latvia First, Apvienotais Saraksts, and Stabilitātei. 31 deputies from New Unity and the Progressives voted against the changes.

The Saeima is scheduled to discuss support for residents with heating bill payments in close cooperation with municipalities, according to ZZS representatives.