This week Latvia’s Corruption Prevention and Combating Bureau (KNAB) together with European Public Prosecutor’s Office (EPPO) performed investigative actions, including searches, in several locations in Valka and elsewhere in Latvia in relation to fraud of at least EUR 2 million.
On the 6th of November 2023 EPPO commenced a criminal procedure and submitted it to KNAB for pre-trial investigation.
KNAB investigates large-scale fraud and abuse of power committed for personal gain.
KNAB suspects that multiple former and existing Valka County municipal officials, allegedly abusing their official position for personal gain, together with a representative of a company have committed illegal activities in connection with two projects implemented by the municipality.
The point of illegal actions was to illegally acquire at least EUR 2 million of financing from European Regional Development Fund for projects. Both projects are related to the infrastructure in the territory of a manufacturing complex.
Currently four people involved in the criminal process have the right to defence. No security measures have been presented to them as of yet.
This isn’t the first case concerning fraud in Valka. In another criminal procedure, KNAB and EPPO performed searches in multiple locations in Valka and elsewhere in Latvia in November 2023. This includes searches and interrogations. The criminal process concerns possible fraud of EUR 776 000.
According to information available to KNAB, two existing and one former Valka County municipality officials may have abused official power for personal gain and committed illegalities together with a representative of some company to illegally acquire at least EUR 744 000 from European Regional Development Fund and EUR 32 000 from Latvian state budget grants.
Currently four people involved in the criminal procedure have the right to defence. One of these people is former Mayor of Valka Vents Krauklis.
At the end of 2023 production territory in Valka County’s Ērģeme Parish was commissioned. EPPO had commenced a criminal process regarding possible violations with use of EU funding in relation to this territory and its use.
The total cost of the project for the municipality, according to documents, is EUR 1.37 million, including the ERDF funding that was planned in the amount of EUR 744 480, the state budget grant – EUR 31 647, and Valka municipality co-financing – EUR 164 972.
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