Crime, Latvia, Legislation, Transport

All five persons are currently in custody, although LETA learned that one of the detainees was absent from Thursday’s court hearings as he had become sick.

KNAB representatives said that the sixth person was released from custody as the court imposed another security measure not involving detention. KNAB had not asked the court to leave this person in custody. LETA learned that this person is Elina Kokina, who used to be a board member of Tram Servis Riga, a now defunct company that was headed by Vladislav Kozak, a manager of Czech firm Skoda Transportation.

The persons remining in custody in connection with this case include Kokina’s former business partner Edgars Teterovskis, businessman Aleksandrs Krjaceks, Igors Volkinsteins, head of the Rigas Satiksme infrastructure maintenance and development department, businessman Maris Martinsons and Skoda Transportation manager Kozak.

As reported, KNAB is currently conducting a criminal investigation into allegedly corruptive procurement deals of Rigas Satiksme. The investigation was started in November and has been conducted in collaboration with Poland’s anti-corruption agency (CBA).

This week, six persons were held in Latvia and two in Poland in connection with the probe. The Latvian court already ruled to leave in custody Igors Volkinsteins, director of the Rigas Satiksme infrastructure maintenance and development department, businessman Maris Martinsons and Skoda Transportation manager Kozak.

Although KNAB is not giving more details about the ongoing investigation, the anti-corruption agency’s representatives revealed that the case is about an EUR 800,000 bribe that some of the people detained in Riga had helped to hide. The bribery case in related to the delivery of nearly 200 buses to Riga city. Rigas Satiksme organized the bus tender from 2013 to 2016.

A representative of the Polish anti-corruption agency said that the EUR 800,000 bribe had to be paid in small installments as fees for fictitious consulting services through a number of firms registered in Latvia, Cyprus, Hong Kong and China before they reached Riga.

In 2016, Poland’s Solaris Bus&Coach won a tender to supply hydrogen-powered transport vehicles to Rigas Satiksme for EUR 21,499,670, excluding VAT.

Velve, a construction firm associated with detained businessman Martinsons, is involved in building Rigas Satiksme hydrogen filling stations.

In 2016, Rigas Satiksme also concluded a EUR 62.59 mln deal with Skoda Transportation on the purchase of 20 low-deck trams.

In 2013, Rigas Satiksme awarded Skoda Electric a EUR 131.64 mln contract on the purchase of 125 trolleybuses.