Latvia’s election system handed over to state-owned companies at the last minute

The Cabinet of Ministers decided at a crisis management meeting on Tuesday to transfer the development of Latvia’s election system to state-owned or partially state-owned companies—Latvijas Mobilais Telefons (LMT), Tet, and Latvijas valsts meži (LVM).

The Ministry of Smart Administration and Regional Development (VARAM) terminated its contract with the election platform developer RIX Technologies and proposed transferring the development work to the aforementioned state-affiliated companies.

As previously explained to LETA by the minister’s adviser Sabīne Spurķe, the changes are intended “to ensure the unquestionable legitimacy of the Saeima elections and to avoid potential reputational risks.” The specific companies were chosen because they involve state participation, have implemented significant national IT infrastructure projects, and employ highly qualified specialists.

The proposed solution envisages that, by decision of the Cabinet, software development contracts would be concluded under an exemption provided for in the Public Procurement Law. At the same time,

the contracts are expected to adhere to key development deadlines previously set by the Central Election Commission (CVK),

ensuring the timeline initially agreed in autumn 2025 between the CVK and the State Digital Development Agency (VDAA) for the technological delivery of the election platform.

The Ministry stated that the contract with RIX Technologies—which had won the right to develop the platform through the Electronic Procurement System—was terminated because the company failed to fulfill its contractual obligations.

Recently, Minister Raimonds Čudars (New Unity) told the Saeima that a contract had been signed for adapting election systems for parliamentary elections. The company had indicated it could complete the work by the 30th of June, but shortly thereafter VARAM decided to terminate the agreement.

Agriculture Minister Armands Krauze (ZZS) told LETA that LVM has historically developed a strong IT team capable of creating unique systems for sustainable forest management, such as “LVM GEO,” which is also available as a public application. Given LVM’s experience and its status as a state-owned strategic company, it can help in situations where there are doubts about private contractors, he added.

Economics Minister Viktors Valainis (ZZS) said he maintains a cautious assessment of the decision, while acknowledging that the choice of companies reflects their professionalism, capacity to carry out significant tasks, and sound governance. He noted that

decisions halted mid-process may involve factors not fully known to all parties

and emphasized the importance of assessing all risks and potential threats. Whether these have been sufficiently evaluated will become clear as the process unfolds.

Valainis stressed that the issue concerns the fundamental principles of democracy and the secure and successful conduct of parliamentary elections, meaning that mistakes cannot be allowed. He expressed hope that the preparatory work has been carried out to a sufficiently high standard to ensure smooth implementation. If the necessary preconditions are in place, the companies involved should be capable of fulfilling their responsibilities, provided there are no unforeseen factors, legal disputes, or other obstacles.

He also underlined that in such a situation it is not possible to stand aside, given that a core element of democracy is at stake. “To ensure secure elections, we will certainly be involved and will not stand aside,” the minister said.

For its part, Latvijas Mobilais Telefons stated that, given its extensive technological expertise, it has responded to the VDAA’s request to support the rapid implementation of critical election system components.

The company has reviewed the limited information currently available and submitted an indicative proposal.

Tet indicated that discussions are ongoing regarding the scope and principles of cooperation and that more detailed comments will follow.

Meanwhile, RIX Technologies confirmed it has received notice of contract termination and will review the arguments before commenting further. It has also been suggested that the company may take legal action against the state.

As previously reported, in a criminal investigation initiated by the European Public Prosecutor’s Office, the State Police detained 21 individuals on suspicion of fraud in IT procurement projects worth 1.5 million euros, including public officials.

In this case, detention was applied to suspended procurement specialist Ainars Biders, former VDAA director Jorens Liopa, and Aigars Ceruss, owner of the Corporate Solutions group, who was later released.

The criminal case, initiated late last year, involves allegations of large-scale fraud and money laundering by an organized group. Investigators believe that a group coordinated illegal agreements to predetermine winners in at least six public procurement projects financed by the European Regional Development Fund, worth up to 1.5 million euros. Contracts are suspected to have been unlawfully secured with the assistance of public officials, with illicit profits distributed among those involved.

In a statement, the EPPO warned that some of these projects could pose potential national security risks, as they may affect elections and democratic processes. Similar concerns have been expressed by several politicians, including Edgars Rinkēvičs.

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