Other events in Baltic States

Managers of Latvian football club Riga have been involved in a criminal case the State Revenue Service has opened over under-the-table salaries allegedly paid to the club's players. 

The news program of TV3 channel reported tonight that criminal proceedings have been started against three persons and one person has been detained in connection with the case. According to unconfirmed information obtained by TV3, the persons involved in the case are the football club's director general Aleksandrs Pronins, sports director Aleksandrs Romasins, and executive director Romans Lajuks, which reportedly is the detained person. 

"We have reasonable suspicions that the club has been renting real estate in Riga and elsewhere in Latvia from players' relatives for prices significantly above the market prices," Kaspars Podins, director of the Tax and Customs Police, told TV3.

The damage caused to the state has yet to be established. "The contracts with players had been concluded for EUR 1,000-1,400, but there are players who have been receiving EUR 1,000 to EUR 10,000 a month in additional under-the-table pay," said Podins. 

Each season, the club had at least 20 players, the TV3 news program said. 

As reported, the State Revenue Service (SRS) has initiated criminal proceedings for the payment of "envelope salaries" at Latvian football club Riga and procedural actions have been performed at the club's premises, according to the information provided by the SRS and the football club.

This is the second Latvian top division football club against which the SRS has initiated criminal proceedings this year after recent revelations that under-the-table salaries were paid out at FK Ventspils.

The SRS informed that this past May, the Tax and Customs Police Department of the Revenue Service initiated criminal proceedings for the payment of "envelope salaries" at a Riga football club.

Meanwhile, the club itself confirmed on it Twitter account yesterday that indeed officers from the SRS were carrying out searches yesterday at its premises.

"The club is continuing training and preparing for Sunday's match. When possible, we will provide more comments," the club said in a statement.

According to the SRS, during the initial pre-trial investigation activities, it has been established that from January 1, 2018 to December 31, 2019 the football club has not included salaries in its accounting registers and has unofficially paid the unaccounted salaries in cash to athletes and employees registered at the club.

The SRS is not revealing any more information at the moment in the interests of the investigation.