Latvian Minister of Finance in hot water because of corruption scandal involving New Unity

Combined List’s (AS) Saeima faction members have submitted a request for the dismissal of Latvia’s Minister of Finance, Unity party’s chairman Arvils Ašeradens after the suspicions voiced about the possible payment of envelope wages within the party.
TV3 programme Nekā personīga reported on Sunday, the 10th of March, that former worker of Unity’s office Normunds Orleāns has turned to law enforcement institutions, claiming that the political party had been paying him and at least a dozen other office workers so-called envelope wages for some time.
In this context, AS notes that Ašeradens is in charge of both the Ministry of Finance and Unity political party, adding that this ministry is directly responsible for implementing a fair tax policy and prevention of grey economy in the entire country.
The political association notes that “it is unacceptable for the Ministry of Finance and the State Revenue Service to be managed by a person whose political organisation is suspected of illegal activities,” as mentioned in the statement from AS.

The dismissal request for Ašeradens was submitted to prevent damage to the reputation of the Latvian government and to reduce the risks of influencing the investigation.

“The news about a possible envelope wage paying in Unity, a party part of the ruling coalition in Latvian, is not just a blatant example of permissiveness and super hypocrisy, but has a devastating effect on honest taxpayers and represents a serious blow to the fight against grey economy,” says AS Saeima faction leader Edgars Tavars.
Unity is the biggest member of parties that compose New Unity association of political parties.
As reported by Nekā personīga, Unity member Orleāns claims that the payment of envelope wages began around 2017, when the party ended up in financial difficulties. He allegedly objected to being paid an envelope wage but was promised that once the party’s financial situation has improved, payment of official wages would continue and all taxes for the previous period would be paid in full.
The politician told the programme that he received EUR 650 in addition to his official wage in an envelope. He also said he saw similar envelopes on the tables of his colleagues.
After the promised payment of taxes never came, Orleāns turned to the party’s management and individually to each leading politician in the party, including then the PM Krišjānis Kariņš and current PM Evikas Siliņa. However, “there were no results”.
Around the end of the year, Orleāns was laid off from his job in the party’s office. After that he sued Unity and New Unity for incorrect notice period, differential treatment and the creation of adverse consequences.
He also reported the payment of envelope wages in Unity to the Corruption Prevention and Combating Bureau (KNAB), State Revenue Service, State Labour Inspectorate and Prosecutor General’s Office, as well as the Data State Inspectorate about possible violations in personal data storage.
Unity chairman Ašeradens denies Orleāns’ accusations of envelope wage payments. He says the party has performed an internal investigation. Workers were interviewed, and no one said they knew anything about that, said the minister.
Unity’s acting secretary general Sanita Stelpe-Segliņa told the programme that she does not have any information about the possible payment of envelope wages to the party’s office workers.
Nekā personīga was not able to contact Unity’s former secretary general Artis Kampars.
The party’s Ethics Committee has allegedly looked into the possible payment of envelope wages in the party. Its chairperson – Iveta Blaua – claimed in a conversation with the programme that after several interviews of people potentially informed of this problem she could not find any confirmation of whether or not envelope wages were paid.
The information gathered by Orleāns for Latvian law enforcers was also reported by another party. KNAB confirmed to Nekā personīga that they have received information from both Orleāns and this other political party. The information is currently being checked.
Also read: Ministry says average inflation in March to remain below 1% in Latvia
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