As part of the so-called timber industry case, Latvia’s Corruption Prevention and Combating Bureau (KNAB), acting on orders from prosecutors, detained Agriculture Minister Armands Krauze and former Agriculture Ministry state secretary, now Head of the State Chancellery of Latvia, Raivis Kronbergs, prosecutors confirmed to the LETA news agency.
Both men were detained for the duration of procedural actions.
Prime Minister Evika Siliņa, who announced her resignation on Thursday, had earlier dismissed Krauze from his post, stating that she could not “tolerate any shadow of suspicion over ministers.”
According to an order signed by the Prime Minister before her resignation, Economics Minister Viktors Valainis will temporarily perform the duties of agriculture minister until further notice.
The Office of the Prosecutor General of Latvia is handling a criminal case involving possible criminal offenses related to abuse of office and alleged negligence in the unlawful provision of state support to timber industry companies.
Prosecutors confirmed to LETA that procedural actions were carried out on Thursday as part of the criminal investigation, including searches at several residences and workplaces, among them the homes and offices of Krauze and Kronbergs.
GIVEN THE SCALE OF THE PROCEDURAL ACTIONS REQUIRED, OFFICIALS FROM THE CORRUPTION PREVENTION AND COMBATING BUREAU (KNAB) WERE ALSO INVOLVED IN CARRYING OUT THE OPERATIONS.
The Ministry of Agriculture of Latvia confirmed to LETA that KNAB is conducting procedural activities at the ministry. The ministry stated that it is cooperating with law enforcement authorities, but since KNAB is leading the process, it cannot currently provide broader comments.
Both Krauze’s and Kronbergs’ phones are reportedly switched off.
As previously reported, the State Audit Office of Latvia had planned on Wednesday to present the results of an audit into the effectiveness of oversight of Latvijas valsts meži (LVM), but this was postponed due to a complaint submitted by the Agriculture Ministry.
The audit examined state forest management processes, the division of responsibilities and the efficient use of public resources. The review is linked to the so-called timber industry support case.
On the 20th of November last year, prosecutors launched a review into whether state officials had acted lawfully when deciding to provide support to timber industry companies.
The review found possible indications of criminal offenses within state institutions connected to allegedly unlawful support granted to timber companies through price adjustments in LVM long-term contracts.
As a result, criminal proceedings were initiated under sections of Latvia’s Criminal Law concerning offenses committed in public service.
AT THE SAME TIME, THE PROSECUTORIAL REVIEW HAS NOT BEEN COMPLETED AND IS CONTINUING AT THE PROSECUTOR GENERAL’S OFFICE, INCLUDING IN COOPERATION WITH THE STATE AUDIT OFFICE.
Previously, an internal investigation commission concluded that the financial situation of timber industry companies that received government assistance at the end of 2023 was not systematically or structurally unstable during that year. However, the report highlighted several factors raising doubts about whether the support granted had been justified.
Meanwhile, Krauze had previously claimed that an internal investigation conducted by the Agriculture Ministry found no evidence that the state suffered losses by providing support to timber companies in 2023.
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