Riga district prosecution office has submitted to court a criminal case against for former Latvian Railway (LDz) board members, including Uģis Magonis. In it, the former officials are accused of abuse of office for personal gain.
According to available information, among the accused are people like Magonis, Edvīns Bērziņš, Aivars Strakšas and Ēriks Šmuksts. Former officials are accused of abuse of office for personal gain, which caused severe consequences, as the damage caused to the state is worth more than EUR 1.5 million, as reported by the prosecution office.
According to the prosecution, LDz board officials ensured the creation of a new executive institution – Presidents Council. This new institution was handed rights and duties that are part of the board’s responsibilities. The prosecution believes this was done to gain additional income for the duties they are already paid to do.
The accused were abusing their office between the 1st of January 2013 and the 18th of August 2019 while serving in the company’s board and Presidents Council. As a result of this activity, they managed to gain additional income for the same duties they were already paid to do. This way the accused caused damages worth EUR 1 553 896 to the state.
In February 2020 the Prosecutor General’s Office commenced a criminal procedure, entrusting the investigation to the Corruption Prevention and Combating Bureau (KNAB), which later submitted the case to Riga City District Prosecution Office to commence criminal prosecution. The case is submitted to Riga City Court for review.
LDz did form a Presidents Council, which the Constitutional Court declared as an illegal institution. However, this council was never liquidated. This council existed in LDz for nine years. It was an institution that received functions of the board of the company. This means the council’s duties included ones already performed by the company’s board. On the 17th of October 2019, the board of LDz decided to terminate the Presidents Council.
Uģis Magonis was the head of LDz until 2015. The council still existed then. Bērziņš, who became a board member in 2011, took over from Magonis in 2016. He remained in charge until 2019. The council also included Aivars Strakšas (2008-2019), Ainis Stūrmanis (2016-2020) and Ēriks Šmuksts (2011-2019).
In May 2019 then the Minister of Transport Tālis Linkaits issued no confidence to Bērziņš, Strakšas and Stūrmanis. Bērziņš and Strakšas were removed from the council in August, whereas Stūrmanis remained until April 2020.
Following the report from the State Audit, in which the institution found that the Presidents Council was unjustifiably paid for duties already performed by the company’s board, Linkaits turned to the Prosecutor General’s Office.
Also read: Latvian corruption watchdog requests criminal prosecution of former LDz board members
Court receives criminal case against former LDz board members, Magonis included
