One of the officials suspended as part of the criminal case regarding the scandalous army food procurement contract, which is investigated by the Corruption Prevention and Combating Bureau (KNAB), is none other than the procurement committee’s head, former member of the National Alliance Ēriks Ezeriņš, according to what Minister of Defence Ināra Mūrniece from the same party told LTV programme Rīta panorāma.
The minister did not mention Ezeriņš by name, however. She did say it was the head of the procurement committee who was suspended.
Ezeriņš was mentioned previously as the head of this committee.
When asked if Ezeriņš remains a member of the National Alliance, Mūrniece said, as far as she is aware, he has since left the party.
The second official suspended with the minister’s order is an official of the National Armed Forces responsible for this procurement. The minister did not reveal this official’s name either. She said it is in the interest of the investigation.
Inspections of other officials that participated in the signing of the deal still continues.
Mūrniece said she has ordered the ministry’s legal team to evaluate the legal aspects for the possible termination of the army’s food procurement. Nevertheless, she also outlined that it is highly important to also assess the usefulness of the procurement, specifically «whether the state has bought something of value or not».
The Military Intelligence and Security Service has commenced its own evaluation of the procurement to check if the procured «service contains any major security risks associated with supplying food to the army during peace and wartime».
Mūrniece added that she expects the first reports to come in the coming days.
If the army food procurement does end up terminated, there is no reason for concern – the army will not starve. The minister did not say what might happen. All she said is that possible developments are in consideration.
As previously reported, two procurement committee members have the right for defence in the investigation headed by KNAB.
Last year, Zītari LZ gained the rights for the EUR 220 million worth food supply contracts for the needs of Latvian National Armed Forces for the next five year.
Information from Firmas.lv indicates the 31 years-old company is owned by Laura Zeltiņa and lawyer Modris Supe. Zeltiņa is the beneficial owner, who is also the company’s board chairperson. KNAB database indicates that in May 2022 Supe had donated EUR 2 500 to For Latvia’s Development political party and EUR 2 000 a year prior. In 2017 and 2015 he donated a total of EUR 10 000 to the party Honour to Serve Riga.
In 2021 the company operated with turnover of EUR 562 498 and profit of EUR 141 546. A year prior the company operated with turnover of EUR 787 051 and losses of EUR 62 399. In 2019 the company operated with a turnover of EUR 3 400 068 and profits of EUR 31 800. In 2018 the company operated with turnover of EUR 2 314 098 and profits of EUR 160 985.
The company owns four cafeterias in Talsi and Riga, a bistro in Roja, as well as a pub, cafe and pizzeria in Ventspils. Information from Firmas.lv indicates the company owns nine vehicles – four cars, four trucks and one trailer.
The company’s account for 2021 mentions that the company primarily provides catering services to Rīgas satiksme, as well as various cafes and Roja Secondary School’s cafeteria. The company also provides catering services to other legal and private persons. In 2019 the company’s operations were heavily impacted by Covid-19 pandemic, as well as various epidemiological restrictions.
The contract signed with Zītari LZ covers creation of a logistical system that unites a number of food producers and other businesses in order to ensure supply of food products to all units of the country’s National Armed Forces stationed in Latvia. According to the contract, the company is also required to secure necessary food reserves for the armed forces. The contract also requires the company to ensure production and supply of food products to the army in the event of a war.
More on this topic: Latvian PM orders Ministry of Defence to look into ways end scandalous food procurement