EU – Baltic States, Financial Services, Investments, Latvia, Legislation

On Tuesday, police detained five persons suspected of defrauding an EU fund of an estimated EUR 4 mдn. It was reported that Ditton holding company was involved in the EU funds fraud. In an interview with Latvian Television, Economics Minister Nemiro said that employees of the Latvian Investment and Development Agency were also involved in the case.

On Wednesday, the agency’s director Ozols told LETA that the agency’s employees were not involved in the fraud and were cooperating with the State Police. They are not treated as suspects, Ozols emphasized.

The agency’s head added that Nemiro had not contacted him before giving the interview to Latvian Television. The economics minister said otherwise in the interview.

Ozols believes that the allegations voiced by the economics minister in the TV program are wrongfully damaging the reputation of both the agency and the Latvian state, as the Latvian Investment and Development Agency works with foreign investors.

The Latvian Investment and Development Agency has sent the Economics Ministry a letter with a request to explain the minister’s position.

State Police spokeswoman Ilze Jurevica, meanwhile, declined comments on whether any employees of the Latvian Investment and Development Agency are involved in the fraud case. She also refused comments on the measures of security imposed on the five persons that were detained in connection with the probe on Tuesday.