Latvia, Legislation, Markets and Companies

Four RNP employees were detained on Monday and one on Tuesday. 

Information obtained by LETA suggests that some of the detainees are employees of RNP's territorial divisions. 

Police said that the law enforcement authorities are probing the detained RNP employees' role in the crimes related to the so-called elevator case.

As reported, two persons were detained in connection with the searches conducted last Thursday at the RNP main office, Economic Crimes Police (ENAP) chief Peteris Bauska informed.

He said that the two person were not directly linked to RNP - their are not current or former employees or board members of the company.

Bauska said that searches were conducted also at the premises of Liftu Alianse elevator maintenance company. The Latvian public television reported that the company's owner Igors Babkins was one of the detained persons. He is suspected of large-scale fraud and money laundering. 

Bauska said that ENAP last year launched a criminal investigation into large-scale organized fraud and money laundering, scheme allegedly operated by several companies which provided services to RNP.

The case refers to a long period of time and is related with several millions of euros. ENAP during investigations cooperated with foreign partners and traces may lead abroad.

As reported, the State Police on Thursday night raided the RNP head office at 42 Caka Street, Riga. The officers left the premises only on Friday morning. 

RNP representative said that police officers seized documents during the searches but that their absence will not prevent RNP from providing housing management services to its clients. 

Latvian Television reported that the searches at the RNP head office could be connected to a company that has been awarded the contract to service elevators in apartment houses managed by RNP.

The office of Liftu Alianse elevator maintenance company was probably searched as well on Thursday night, Latvian Television reported.

According to information available at Firmas.lv, Liftu Alianse belongs to Igors Babkins. In 2018, the company increased turnover by 20% to EUR 1,319,939 and nearly doubled its profit to EUR 1,214,689.

Rigas Namu Parvaldnieks belongs to Riga City Council. The company was established at the end of 2010 by merging fifteen municipal housing management companies.

Last year, Hausmaster housing management company and Latvijas Lifts-Sindlers elevator maker asked the economic crime police (ENAP) to assess the results of a tender to service and repair elevators in the apartment houses managed by RNP. 

According to the rules of the tender, applicants were required to have at least 134 specialists and a three-year turnover of at least EUR 8,300,000 to qualify for the competition. Although Hausmaster and Latvijas Lifts-Sindlers met these requirements their bids were rejected and the tender terminated.

After that, RNP organized a new competition which was held as a negotiations procedure in which the elevator maintenance contract was awarded to Liftu Alianse, a company with only eight employees and no sufficient experience or resources to provide the required services. 

Aivars Gontarevs, then RNP CEO, claimed that the losing applicants' complaint to the law enforcement authorities was an attempt to slander the company.