At least 54,000 euros may have been embezzled from the budget of the Rēzekne Technical School, according to an audit conducted by the State Audit Office (Valsts kontrole), which revealed possible fraudulent activities. The Ministry of Education and Science (IZM), the State Police, and the Prosecutor’s Office have been informed, and criminal proceedings have been initiated.
It was previously reported that, following the audit findings, the school’s director, Benita Virbule, was suspended from her duties for the duration of an internal investigation. The Ministry of Education had not disclosed details about the nature of the alleged violations, promising further information only after the conclusion of the disciplinary inquiry. The State Audit Office, meanwhile, had promised to release an interim report but had refrained from detailed comments until now.
The State Audit Office now reports that, during audit procedures regarding payments to service providers, it uncovered evidence of possible fraudulent actions — specifically, deliberate falsification of payment documents with the intent to transfer funds to third parties.
Such actions were possible because, when executing payments, the school did not verify whether the recipient’s name matched the indicated account number (IBAN). This allowed funds to be transferred to individuals or entities not entitled to receive them, the auditors concluded.
Payments were made from the school’s accounts to three different bank accounts,
all under the same listed recipient name.
For example, payments for a company’s services were made not only to the account specified in the contract but also to three other accounts, whose ownership the State Audit Office could not identify.
Several cases were also found where the same invoice was paid twice — once to the account specified in the invoice and service agreement, and again to a different, unidentified account.
For instance, an invoice for 355 euros was first paid to the correct account, and ten days later, the same amount was transferred again to another account.
Between 2019 and 2025, nearly 54,000 euros was transferred to these three accounts.
Auditors also noted discrepancies between the documents submitted by the technical school and the payment data obtained from the State Treasury, which, in the Audit Office’s assessment, indicates attempts to conceal the true information.
According to the interim report, after auditors’ inquiries and requests for clarification, the school’s director suspended the accountant without pay until the facts are clarified. The director also reported the identified violations to the police.
The report further states that the Rēzekne Regional Department of the State Police’s Criminal Police Bureau has launched a criminal investigation under Section 177, Part 3 of the Criminal Law, which concerns large-scale or organized fraud.
Ilze Bādere, a member of the State Audit Office’s Council and head of department, told Latvijas Radio that, in this case,
suspicions primarily fall on two officials of the technical school.
After the Audit Office requested explanations and information about the transactions, corrections were made in the school’s accounting system, including changes to the service providers’ account numbers.
The State Audit Office also pointed out that on the 9th of October of this year, a new European Union regulation came into force requiring payment service providers to verify the match between the recipient’s account number (IBAN) and name before processing a payment.
According to auditors, this will significantly reduce the risk of similar fraud cases.
The audit of Rēzekne Technical School was part of a financial audit sample
related to the preparation of Latvia’s consolidated 2025 annual report. This audit is still ongoing, but an interim report has been prepared regarding the findings at the technical school.
As reported earlier, Minister of Education and Science Dace Melbārde (New Unity) described the director’s actions as “unacceptable, especially under difficult budgetary conditions”, though she did not elaborate on the details.
“Our duty is to ensure responsible and transparent financial management, in order to maintain public trust and strengthen the development of vocational education,” the minister stated.
Following the announcement of Virbule’s suspension, the LETA news agency made several unsuccessful attempts to reach her for comment.
Irēna Kroiče, the Deputy Director for Educational Content and Development, has been appointed Acting Director of the technical school.
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