In a criminal case initiated by the European Public Prosecutor’s Office (EPPO), two individuals have been remanded in custody on suspicion of fraud in information technology procurements worth 1.5 million euros, the State Police told the LETA news agency.
Initially, EPPO informed LETA that four individuals, including one public official, had been placed in pre-trial detention. However, the State Police later informed that detention has been applied to two individuals, one of whom is a public official.
Latvian Television, citing unofficial information, reports that one of the detained individuals is former head of the State Digital Development Agency, Jorens Liopa. He currently serves as Deputy Director of the Nature Protection Department.
Meanwhile, TV3 has reported that law enforcement interest in the investigation may also involve Aigars Ceruss, owner of the company “Corporate Solutions,” although the company has not responded to inquiries.
Police have not disclosed what preventive measures have been applied to other individuals involved in the case,
stating only that procedural activities are ongoing.
On Monday, the State Police detained 21 individuals, including public officials, in the EPPO-led criminal investigation into alleged fraud in IT procurements valued at 1.5 million euros. At the same time, the Corruption Prevention and Combating Bureau (KNAB) is investigating a separate case concerning the disclosure of restricted information, involving the State Secretary of the Ministry of Smart Administration and Regional Development (VARAM), Edvīns Balševics, an official from the State Digital Development Agency, and a businessman.
According to a police statement, extensive procedural actions were carried out as part of the EPPO investigation, including a large-scale detention operation and the dismantling of an organized criminal group suspected of manipulating public procurement procedures related to IT systems for state institutions. In total, 21 individuals were detained in Riga and the surrounding region.
Minister of Smart Administration and Regional Development Raimonds Čudars (New Unity) emphasized that it is important to ensure accountability for all individuals involved in wrongdoing. He added that both VARAM and the State Digital Development Agency are fully cooperating with law enforcement authorities.
“Within the framework of the criminal proceedings,
law enforcement authorities have approached several officials of the ministry and the agency.
So far, no information has been received regarding their status in the case or any restrictions imposed. If such information is received, all necessary actions will be taken accordingly,” the minister said.
The State Digital Development Agency confirmed that law enforcement representatives had visited the institution but stated it had no information regarding the nature of the investigation.
Former Minister of Smart Administration and Regional Development Inga Bērziņa (New Unity) told LETA that when Jorens Liopa was suspended during the investigation into issues with the election process, her priority had been to ensure the completion of the elections.
Looking back, she admitted that perhaps it would have been better to dismiss the agency head rather than suspend him. However,
she had concerns that removing those responsible for organizing the election process could have jeopardized its completion.
At the time, results from approximately 70% of polling stations had been counted, and responsible staff had identified and partially resolved system errors. The minister feared that removing key personnel could have disrupted the final outcome.
Bērziņa also noted that law enforcement authorities have not contacted her in connection with the case.
As previously reported, the criminal proceedings were initiated at the end of last year and are classified under articles of the Criminal Law relating to large-scale fraud committed by an organized group and large-scale money laundering by an organized group.
The investigation has revealed that an organized group entered into an illegal secret agreement to predetermine the winners of public procurements in at least six projects financed by the European Regional Development Fund (ERDF), with a total value of up to 1.5 million euros.
According to investigative findings,
the group arranged for contracts to be awarded to pre-selected companies,
after which the illicit profits were distributed among participants. There are also suspicions that the contracts were secured with the assistance of public officials.
In its statement, EPPO also noted that the implementation of some of these projects could pose potential national security risks, as they may affect elections and democratic processes.
The State Police reported that a total of 67 searches were conducted in Riga and the surrounding region — both at private residences and company premises — resulting in the seizure of a significant amount of potential evidence.
The investigation involved extensive police resources, as well as cooperation with EPPO and Europol.
Meanwhile, KNAB is investigating a separate criminal case concerning the disclosure of restricted information. The bureau confirmed that procedural actions were carried out in Riga as part of a criminal investigation launched on the 11th of March.
According to KNAB,
two public officials may have disclosed restricted (though not classified) information to a businessman.
The disclosed information is related to IT procurements in various state institutions.
KNAB confirmed that three individuals in this case — a VARAM official, an official from the State Digital Development Agency, and a businessman — currently have the status of persons entitled to defense.
The Nature Conservation Agency (DAP), where Jorens Liopa currently serves as Deputy Director of the Nature Protection Department, told LETA that he did not appear at the office on Wednesday and has not been reachable through any communication channels. Therefore, the agency cannot confirm whether he is currently performing his duties.
LETA was also unable to contact Liopa, as his phone is switched off.
KNAB emphasized that its investigation is not related to the criminal proceedings initiated by EPPO.
VARAM confirmed that law enforcement authorities have approached State Secretary Edvīns Balševics, who is cooperating and providing all necessary information. Due to a non-disclosure obligation, he cannot provide further comments.
The ministry also confirmed that Balševics remains at work and is not subject to any restrictions in performing his duties.
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