The tender organised to procure food supply services for the Latvian army during war and peacetime was put together following the regular procurement procedure, not in accordance with the special law created for the defence sector. This allowed contenders to not undergo assessment by security services, as reported by LTV programme De Facto.
LTV explains that the defence and security sectors have their own, special laws that govern procurement activities. One of the procedures that makes the laws different from the Public Procurement Law is the involvement of security services in the assessment of contenders.
If the client if the Ministry of Defence, its subordinated structure or the National Armed Forces are to submit conclusions about candidates to the Military Intelligence and Security Service.
If the service spots threats to national security, questionable candidates are to be excluded.
Considering the food procurement for National Armed Forces was organised in accordance with the Public Procurement Law, no evaluation was requested from Military Intelligence and Security Service, the programme concluded.
As previously reported, the food procurement contract went to Zītari LZ. Minister of Defence Ināra Mūrniece mentioned that the defence sector has commenced its own evaluation of the contract and ways to terminate it. Latvian PM Krišjānis Kariņš has signed a resolution that orders the ministry to find ways to terminate the contract.
Mūrniece also said that the planned price of the contract is far outside the budget capabilities of Latvia’s National Armed Forces.
KNAB, meanwhile, has commenced criminal proceedings over the procurement of food for the needs of the Latvian armed forces.
To check the procurement procedure using criminal procedural methods, KNAB commenced criminal proceedings on the 3rd of March 2023.
Currently four people involved in the criminal proceedings – two members of the procurement committee, a representative of a company and advisor of ex-Minister of Defence Artis Pabriks – have the right for defence. None of these people are presented with any security measures.
At the same time, the head of the procurement committee, now ex-member of the National Alliance Ēriks Ezeriņš and some NBS official have been suspended because of the scandal. KNAB does not say if there are other officials involved in criminal proceedings.
The Ministry of Defence has commenced an internal investigation over the procurement situation.
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.
More on this topic: Head of army food procurement committee suspended due to ongoing scandal