Latvian MEP accused of causing millions of losses to Riga; calls it “absurd”

The charges presented by Latvian Corruption Prevention and Combating Bureau (KNAB) about allegedly causing losses worth EUR 10 million to Riga municipality are politically motivated, says Latvian MEP and ex-Mayor of Riga Nils Ušakovs.
KNAB has asked the Prosecutor General’s Office to prosecute Ušakovs, his then vice-mayor Andris Ameriks and several others in the criminal case regarding the EUR 10 million of losses caused to Riga municipality and its capital association.
At the end of March LTV programme de facto reported other people involved in this case: once the head of Riga City Council’s Transport Department Emīls Jakrins, Rīgas satiksme’s former manager Leons Bemhens and once a member of Americs’ party Aleksandrs Brandavs, whose name has ties to the company Rīgas mikroautobusu satiksme. In 2018 Brandavs was this company’s beneficial owner.

Ušakovs believes the charges presented by KNAB are mainly the position of the ruling coalition at Riga City Council, that social costs are interpreted as criminally punishable losses.

He comments that he has never faced “a greater absurd” in his life. He added that this position “fits excellently” with the new administration in Riga.
Ušakovs ironically comments that he is suspected of holding a meeting of the city council, during which members of the city council, through discussions and a free vote, passed regulations on provision of discounts to certain passenger groups using Riga’s public transport network.
“As a result of this decision, pensioners and schoolchildren were able to use Riga’s entire public transport network free of charge – from tramways to shuttle buses. Pensioners’ and schoolchildren’s trips were compensated from the same tariff that was equal to everyone – EUR 1.15,” stresses the politician, adding that Riga City Council compensated these trips and it cost the budget more than EUR 10 million.

“The investigation believes these are losses that can be considered damages in the eyes of the Criminal Law,” says Ušakovs.

He disagrees with this assumption, stressing that all functions performed by municipalities require financial resources. At the same time, provision of functions is a duty of all municipalities and their costs, stresses the politician, cannot be considered damages in the eyes of the criminal law.
Ušakovs does not understand how free tickets on holidays and “blizzard” tickets during winter can be considered as damage. He says the same interpretive method can be used to look at Riga Vice-Mayor Viļnis Ķirsis’ statement about unique Song and Dance Celebration 10-day tickets sold at a fixed price – EUR 10. The ex-mayor says it is normal for Rīgas satiksme’s travel costs to be higher, but Riga municipality did this to ensure order and more comfortable and convenient movement in the city during the celebration.

“This is a logical course of action, even though Riga has to pay extra to the passenger carrier,” stresses the politician.

Jurmala City Council, according to Ušakovs, acted similarly when it made the decision to sign a contract with Pasažieru vilciens JSC to provide residents living in Jurmala to use Riga-Kemeri and Kemeri-Riga train route for free.

“Shouldn’t authorities turn their suspicious gaze at Jurmala City Council and the current Riga City Council as well?” Ušakovs rhetorically asks.

He believes KNAB follows a “politically motivated process”. Ušakovs has no doubts he will “once again prove his truth”.
MEP Andris Ameriks, meanwhile, has told the media he cannot comment on KNAB’s request to the Prosecutor General’s Office to prosecute him as well.

The politician said the prosecution office can decide on its own whether to let the case go. Ameriks said that during the period of time the case covers he was not even in Latvia.

The once head of Riga City Council’s Transport Department Emīls Jakrins told the media on Thursday, the 11th of May, that he will refrain from comments for the time being, as he is not clear about the cause of the charges.
On Wednesday the 10th of May, KNAB submitted to the Prosecutor General’s Office a criminal procedure in which four former Riga City Council and its capital association’s officials, as well as one private person, are accused of generating revenue for a shuttle bus passenger transport company, with part of this revenue being paid back as a regular bribe to two former high-ranking officials of Riga City Council.
As a result of this crime, the municipality and its company suffered losses worth more than EUR 10 million.
The investigation reveals that the ex-chairman of Riga City Council, his vice and the indirect owner of the company had agree on necessary actions to perform the bribery.
The agreement provided for changes to regulations so that the company can receive from Riga City Council payments through its capital association for carrying passengers at a discount. 30% of this revenue was received every month by Riga City Council’s chairman and his vice in cash, apparently. This additional income was being received by the company and its members between May 2018 and April 2020.
To ensure amendments to regulations are implemented, two other officials of the municipal company prepared and submitted to decision-makers false information about the nature of discounts for public transport services and their effect on the municipality’s and its company’s economic interests.
The people involved in the crime knew of the illegal nature behind the discount on public transport tickets and the losses it would cause for Riga City Council and its company, investigators say.
In December 2022 Riga City Court acquitted Ušakovs in the criminal case in which he was accused of having a secret surveillance device in his office.
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