Corruption, Energy, Financial Services, Latvia, Law and Regulations, Legislation

Plavinu HES hydro power plant

The Regional Court partly lifted the verdict passed by the Riga District Court in 2016 and made a new verdict instead. Cvetkovs who was earlier acquitted in relation to taking bribes was now found guilty.

Melko will face four years and six months in jail, and for three years and six months he will be banned to have a position of a board member in state and municipal enterprises. Cvetkovs will face three years and six months in jail and will be banned to hold a board member position in state and municipal companies for three months, and the same punishment will be faced by Livanovics.

Proceeds from crime worth EUR 146,500 will be confiscated, as well as EUR 182,600 will be confiscated from Cvetkovs, and EUR 290,000 will be confiscated from Melko.

The verdict can be appealed with the Supreme Court after April 23 when the full text of the verdict is available.

The Regional Court said that none of the convicts was arrested at the court hall.

As reported, the first instance court found Melko and Livanovics guilty, but slapped fines on them, while Cvetkovs was acquitted. The court of first instance slapped a fine of EUR 48,100 on Melko, Livanovics was fined with EUR 37,000, and Energy Consulting was ordered to pay a fine of EUR 148,000.

According to the charges, the bribery took place between August 1, 2007, and June 15, 2010. The bribe had to support interests of Alstom Power Sweden AB company in the public tender for reconstruction of Plavinu HES hydro power plant and TEC-2 thermal power plant. The size of the bribe was EUR 627,100.

The Corruption Prevention Bureau (KNAB) sought prosecution of 17 suspects in the case. KNAB asked the law enforcement authorities to prosecute four former Latvenergo managers for graft, and two of them also for money laundering. Four authorized representatives of foreign companies are facing bribery charges, and eight individuals are facing money laundering charges. One of these people also faces prosecution for repeatedly mediating bribery deals. These company representatives include citizens of Spain, Turkey and Sweden. Another suspect is facing prosecution for aiding and abetting bribery mediation.

KNAB sent the case to the prosecutor's office on September 11, 2012.

The suspects detained in connection with the case included then Latvenergo president Karlis Mikelsons, his deputy Aigars Melko and businessman Andrejs Livanovics. They were later released on bail.

KNAB believes that former Latvenergo officials have received in total about EUR 8 million in bribes during implementation of several projects. Bribery worth EUR 11 million was prevented because investigators detained the officials.