The Ministry of Defence is in the process of terminating the contract with Zītari LZ LLC for the supply of food for the country’s National Armed Forces (NBS), said PM Krišjānis Kariņš in an interview to LTV programme Rīta panorāma.
The ministry is currently looking for the best legal solution.
“The process has started,” said Kariņš. “The goal is clear.”
As previously reported, in December 2022 Roja-based company Zītari LZ won the EUR 220 million-worth contract for food supply for the needs of Latvian armed forces for the next five years.
The contract signed with this company was for the creation of a logistical system that unites a number of food producers and other businesses to ensure food supplies for all NBS units across Latvia’s entire territory. The contract also provides for the creation of food reserves for the needs of the army.
The contract also provides a duty for the company to ensure production of food products and their supplies to National Armed Forces in the event of a war,
as previously reported by the ministry.
Following the scandal, the Ministry of Defence has commenced various inspections. Initial results point to possible violations. The Corruption Prevention and Combating Bureau has also commenced its own investigation. Politicians, meanwhile, have decided the best option would be to terminate this contract altogether.
The Ministry of Defence was given time until the end of March to prepare a report on this issue, so that the government can start tackling this situation in the beginning of April. However, so far there has been few updates.
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