Foreign investors point at slow progress in fight against corruption

  • 2021-02-07
  • LETA/TBT Staff

RIGA - Foreign investors have pointed out that the Corruption Prevention Bureau (KNAB) has been achieving progress in fight against corruption, but the progress is slow, according to the Foreign Investors Council in Latvia Sentiment Index 2020.

Commenting on unethical or illegal actions by companies, unfair competition, an information and technologies (ICT) company said that it still sees unfair competition, while another company noted that there are no visible improvements in this area.

A professional assurance and advisory services company said that the Competition Council "seems to be working a lot, however we haven’t seen public decisions on the most recent loud scandals”.

Several retail trade and services companies noted that they are becoming less tolerant of corruption, and the prime minister seems to be taking on this fight more, however on a ministry level there is still no unified understanding.

“There is hope that newly elected politicians in the Saeima and Riga municipality will ensure a more transparent and honest tenders’ process

and changes in the major courts, prosecution and police positions will improve the quality of their work to call for justice,” said a finance and

banking company.

From September to early November 2020, FICIL interviewed 44 senior executives representing companies that are key investors in Latvia.

Altogether, these companies (including their subsidiaries) contribute to 16 percent of Latvia’s total tax revenue, 13 percent of the total profit and employ 10 percent of the total workforce of companies with a turnover above EUR 145,000 and 50 percent foreign capital.