Corruption watchdog estimates damages caused by fraud in Central Elections Commission’s various contracts

The suspect – Kristīne Bērziņa – was suspended as chairperson of the Central Elections Commission (CVK) following the request from Corruption Prevention and Combating Bureau (KNAB). She warns that this situation puts at risk preparations for the next European Parliament elections in Latvia, as reported by TV3 programme Nekā personīga.
Law enforcers have found signs of fraud and document forging in contracts signed with CVK for the supply of equipment for elections.
CVK is Kristīne Bērziņa’s first and only workplace. Four years ago then the CVK press-secretary took over the commission from Arnis Cimdars. This is also when European Parliament elections took place. This was also the first elections during which residents were able to freely vote at any election site. It was possible thanks to CVK’s computer system. Unfortunately, the system did not work as intended and elections were difficult. This is why politicians decided to have CVK take over the information infrastructure.
Saeima National Security Committee’s chairman, former chairman of the e-management sub-committee Jānis Dombrava looks back: «The problem is that there is only one supplier. This is a very sensitive system that has direct ties to national security. Fortunately, it is a local company, but a company can be sold at any moment. We cannot allow it to land in the hands of foreigners, as it would influence election results.»
The commission suggested for the state to take over this system. Politicians were told that only one company routinely wok procurements organised by CVK for information and communication technologies. For years the State Audit has warned that CVK is dependent on SOAAR IT company, which provides various e-services for elections. It also dictates the price. Cooperation with the company managed by Renārs Kadžulis was established during Cimdars’ term in CVK.
In the past 11 years this company received a total of 19 orders from CVK for a total amount of EUR 4.5 million. Although the Procurement Monitoring Bureau marked the orders received by SOAAR with many red flags, as the company did not compete in any procurements, it did not stop CVK from signing contracts with this company. No complaints were received from other IT companies either.
Despite the fact that the proposal to take over IT systems came from the Saeima, CVK still had to organise procurements using available resources. The institution, which consists of 12 people, has only one IT system administrator. In order to write specifications for the complicated procurement, an expert from the side was hired on third try, as previous candidates failed to qualify for the service due to objections from special services. In the election system procurement for 2020 only one company applied – SOAAR.

«This is when our illusions about any competition in the e-environment fell apart,» said Bērziņa.

CVK had no necessary IT competence. The funding allocated to procure the election module for 2021 municipal elections was too low. Costs turned out twice as high – both for the procurement of the system and maintenance during elections. In the election year Kristīne Bērziņa asked money from the Ministry of Finance to afford creation of an IT office.
Minister of Finance at the time Jānis Reirs did not respond to the letter containing the request. Saeima’s Budget Committee did not review the request either. CVK’s suspended manager claims «we tried to reach out and meet with Reirs multiple times, but we was too busy.» Reirs told the programme that he suggested meeting on multiple occasions: «CVK’s office is right opposite to the Ministry of Finance. There is always the option to arrange a meeting.»

Meanwhile, the next European Parliament elections are to happen in a year and a half. Unfortunately, development of the election management module still has not started.

SOAAR representative said this requires 18 moths to complete. Before elections can take place, IT solutions will need to be checked by other institutions. CERT.LV deputy manager Varis Teivāns explained: «Our institution has no objections to any specific developer. Cooperation [with SOAAR] has been excellent and normal so far. Having a new developer is nothing bad, but it will restart the process. We will likely have to accept the fact that it may take even longer, as security tests may take at least six months alone.»
Dombrava says – he would rather not think European Parliament elections are at risk: «A democratic country needs to be able to organise them, and we still have time».
The investigation launched against SOAAR does not, however, prevent the company from taking part in the next procurement. It is possible the company may be disqualified due to its reputation. Until now other potential IT system developers have been largely disinterested in CVK’s procurement projects. CVK has yet to announce a new procurement to make it to the next elections. The commission stands leaderless, however. The institution’s IT system administrator is also suspended.
«Is there a company in Latvia that would be able to develop a solution from the grounds up for the European Parliament elections in 12 months?» Bērziņa asked rhetorically. «If there is, then we have hope. But if not, I don’t know how we will organise European Parliament elections.»
She also said there isn’t a single state institution in Latvia that is in charge of planning or developing the election policy. Although the Cross-Sectoral Coordination Centre performed an analysis of the situation, the report remains in the drawers of the government and the Saeima.
In parallel to KNAB the Internal Security Bureau performs its own investigation of the development of the voter register. Aside from SOAAR, two officials of the Office of Citizenship and Migration Affairs are among the accused, Nekā personīga reports.
Also read: Latvian CVK proposes letting residents vote in EP elections at any election site