Scandalous Latvian businessman Ernests Riekts, who is one of the accused in the criminal case regarding a tragic fire in a hostel he owned in Riga, has launched a crowd-funding campaign to purchase an island on the Fiji archipelago. He promises all investors will be able to build their own houses. TV3 programme Nekā personīga found out: the island the businessman wants to purchase is a nature reserve, and it is permitted to build only one structure there.
The programme also reports that Ernests Rieksts has not communicated with the owner of the island eyed for New Latvia.
More than one and a half century later – the story presented by NP starts – Krišjānis Valdemārs purchased a manor in Russia and invited his countrymen to create a colony there. At the time Latvians were no able to own land in Latvia, as it belonged to Germans. Although the land purchased in Russia wasn’t very good, it was owned by Latvians. There was a great deal of interest and by WWII several dozen Latvian colonies were formed in Russia.
Now Ernests Riekts wants to try his luck at this whole «colony-building business», it seems. He invites fellow Latvians to give money to purchase the tropical Vatuvara Island and build a country there – New Latvia. Rieksts promises to build a country with its own legislation. He also promises a waste-free lifestyle, «zero emission» policy, as well as highest quality education system, ecological food, quality healthcare. He even promises to «integrate endangered animals into society».
EUR 1 380 will get investors 15 m2 piece of land with a permit to build a one-storey house. With an additional EUR 800 investors will receive a permit for a two-storey house, and another EUR 600 on top will grant permission for a three-storey building.
If this offer sounds too good to be true, that’s because it is. The photos used on the website advertising New Latvia
were taken from the internet: Maldives, Australia, Thailand, Germany, Great Britain and other places.
Director of the Consumer Rights Protection Centre Baiba Vītoliņa explains: «The promise is unrealistic, because no evidence of operations or contracts, or ideas to create a new country somewhere far away – nothing indicates these actions will be performed or if they are even realistic.»
Vatuvara Island is part of Fiji. It’s diametre is a total of 3 km. Most of the territory is taken up by a crater of an inactive volcano. Vatuvara Island and three nearby islands are owned by Oakley eyewear brand Owner Jim Jannard. He created an exclusive resort on the archipelago. Wealthy people hold weddings there and spend their honeymoon. The small Vatuvara Island is often called the most beautiful of Fiji’s 800 islands.
The whole range of islands is now up for sale for USD 155 million. The offer includes a private aircraft and other benefits. Vatuvara Island alone is valued at USD 55 million. The sale is managed by Vladi Private Islands. The company knows nothing about any man by the name of Riekts or any plans to let thousands of people live on the island.
Vladi Private Islands GmbH manager Farhad Vladi told NP journalists the following: «As far as I know, Ernests Rieksts has not contacted us. Vatuvara Island cannot be divided and sold as separate pieces of land. There are also nature protection regulations in place there. It is permitted to build only one building on the territory of the island. The entire island is on sale, not separate pieces of land.»
The author of the New Latvia idea, meanwhile, is ecstatic: «We have received many pledges. We receive pledges all the time». When asked by NP is he has even been on the island at all, Rieksts said: «You see, I have travelled the world a lot, and I’ve been to many different islands. We decided to acquire this island after looking through all the offers we have received. I plan to visit it in the near future.»
NP asked him: «I have contacted the seller, and they said this island is a nature reserve. Regulations permit construction of only one building on its territory. Will this be an obstacle?»
Rieksts’ response: «In short – there are companies, lobbying companies, and there are lawyers. We are consulting with them. All this can be changed, because they have more than 800 such islands.»
Latvian Consumer Rights Protection Centre’s manager warns potential investors: «You have to check and make sure you understand what it is exactly you’re buying. In this specific case there is no clear message as to what you are doing. You sort of invest and you sort of get land.
But if you refuse, you won’t get a refund.
There is also no real contract people are expected to sign and how everything will be implemented. There is a lot of pointless information. You have to look for evidence that anything will actually happen.»
Riekts, however, denies all concerns. People will receive documents, specifically receipts, he said. Those who are afraid to invest immediately are able to sign a contract for post-payment options.
«We promise only pieces of land for 2023. We are going to Vatuvara Island to build our country. We do not promise anything more than land at the moment. In time we will build our country, establish our city. This won’t happen immediately. Our business model means residents will be relieved of taxes, but there will be taxes for tourism,» says the author of the idea.
Rieksts has help in gathering money. Kaspars Caune is one of them. He was mentioned in a criminal case involving fraud and money laundering. Rolands Millers, who was in the management of KPV LV for a time, is also a supporter of Rieksts’. Rūdolfs Brēmanis has also assisted with promotional efforts. He ran in elections from the list of the For each and Every political party, and was accused of embezzling EUR 100 000 from the Ministry of Foreign Affairs.
According to information available on the website associated with New Latvia project, the money goes to Lithuanian Revolut Bank account owned by a Britain-based company. One Andris Brūveris is listed as the sole official of this company. This person is not engaged in any business activities in Latvia. It is worth mentioning that other people were owners in Rieksts’ previous business endeavours.
Rieksts is one of two suspects in the criminal case regarding the fire in the hostel in Riga. Nine people were killed in that tragedy.
His comment: «I don’t see my guilt for an apartment I don’t own, in a company I don’t own and in which I am not responsible for fire safety.»
NP asks him: «But aren’t you the beneficial owner there and in this new business? What if violations are uncovered there as well, do you really think no charges will be raised against you?»
Rieksts’ response: «In this company the domain is registered on my name. Wherever necessary I give my personal guarantees.»
NP reminds that Rieksts owned other hostels and communal apartments. The State Revenue Service has started looking into illegal business activities involving this man. In parallel to the hostel business, Rieksts also founded Riga Float institution, which offered weightlessness therapy in a salt pool. However, the pandemic forced closure of this business. Those who booked a session and paid for it did not get refunds.
More on this topic: Two people prosecuted in the Merķeļa Street hostel fire case