Latvian PM Krišjānis Kariņš has signed a resolution in which the Ministry of Defence is ordered to look into various ways to end the food procurement contract for the Latvian army signed with Zītari LZ. At the same time, the ministry is ordered to maintain uninterrupted supply of food to the country’s armed forces, as confirmed by the PM’s office.
The PM ordered the ministry to do this, considering the information about various problems with the procurement.
The Ministry of Defence has until the 31st of March to prepare a report on the termination of the contract, so that it can be reviewed at the government’s meeting on the 4th of April.
Minister of Defence Ināra Mūrniece announced on the 7th of March that the ministry will continue assessing this contract. «We are in the middle of this process, and the issue will be viewed in detail from various legal aspects, specifically the consequences from this contract’s termination,» the minister explained.
As previously reported, on Thursday, the 16th of March, KNAB performed various criminal procedures in multiple locations in Riga and elsewhere in Latvia.
This includes 14 court-sanctioned searches and detainment of certain persons.
Currently four persons involved in the criminal procedure – two members of the procurement committee, a company representative and former advisor of the previous Minister of Defence have the right to defence. None of them have been presented with any security measures as of yet.
More detailed information is not available at this time.
The procurement of food for the needs of the Latvian army was organised by State Centre for Defence Military Objects and Procurement (VALIC). The committee was headed by Minister of Defence Ināra Mūrniece’s party member Ēriks Ezeriņš. Rinalda Grīna was the deputy head of the committee.
Members of the committee included Imants Freibergs, Kārlis Sudrabs, Sanita Vaidere, Ervīns Skudra, Inga Akmeņkalna-Avana, as well as then the Minister of Defence Artis Pabriks’ advisor Valdis Verners.
Ezeriņš’s phone has been switched off since the middle of March. Now Verners has switched off his phone as well.
Previously, however, he insisted that he did not commit any illegalities in relation to this procurement, adding that he is prepared to go to KNAB if the bureau requires any explanations from him.
On the 17th of March the Ministry of Defence reported about the minister issuing an order to suspend two officials in relation to the food procurement.
The two officials are also under investigation.
The Ministry of Defence has also commenced its own investigation of the procurement worth EUR 220 million.
Last year, Zītari LZ gained the rights for the EUR 220 million worth food supply contracts for the needs of Latvian National Armed Forces for the next five year.
Information from Firmas.lv indicates the 31 years-old company is owned by Laura Zeltiņa and lawyer Modris Supe. Zeltiņa is the beneficial owner, who is also the company’s board chairperson. KNAB database indicates that in May 2022 Supe had donated EUR 2 500 to For Latvia’s Development political party and EUR 2 000 a year prior. In 2017 and 2015 he donated a total of EUR 10 000 to the party Honour to Serve Riga.
In 2021 the company operated with turnover of EUR 562 498 and profit of EUR 141 546. A year prior the company operated with turnover of EUR 787 051 and losses of EUR 62 399. In 2019 the company operated with a turnover of EUR 3 400 068 and profits of EUR 31 800. In 2018 the company operated with turnover of EUR 2 314 098 and profits of EUR 160 985.
The company owns four cafeterias in Talsi and Riga, a bistro in Roja, as well as a pub, cafe and pizzeria in Ventspils. Information from Firmas.lv indicates the company owns nine vehicles – four cars, four trucks and one trailer.
The company’s account for 2021 mentions that the company primarily provides catering services to Rīgas satiksme, as well as various cafes and Roja Secondary School’s cafeteria. The company also provides catering services to other legal and private persons. In 2019 the company’s operations were heavily impacted by Covid-19 pandemic, as well as various epidemiological restrictions.
The contract signed with Zītari LZ covers creation of a logistical system that unites a number of food producers and other businesses in order to ensure supply of food products to all units of the country’s National Armed Forces stationed in Latvia. According to the contract, the company is also required to secure necessary food reserves for the armed forces. The contract also requires the company to ensure production and supply of food products to the army in the event of a war.
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