Allegations fly after revelation of secret pact

  • 2007-04-18
  • By Talis Saule Archdeacon

POINTING FINGERS: Talk show host Domburs dropped a bombshell during his show when he revealed the compromising document.

RIGA - Fresh evidence has emerged of a secret agreement between political and business leaders in Latvia, sparking a new flurry of accusations, denials, confessions and finger-pointing in political circles as the country gears up for its crucial presidential elections. On April 11 Janis Domburs, host of the high profile television talk show "Kas notiek Latvija?" ("What's Happening in Latvia?"), revealed a secret document purportedly signed in 1998 by individuals "representing Latvia's political and economic forces."

The agreement outlines conditions for the makeup of the government, a provision for toppling the government, controlling the mass media, an agreement on financing, and the privatization of certain industries.
The agreement asked its signatories to aim their efforts toward exposing the policy of the ruling People's Party, but to do so in a way that they acted "correctly, reasonably, and without shallow populism."
In return, the politicians were allegedly to receive campaign funding and favorable representation in newspapers owned by businesses implicated in the deal. The existence of such an agreement between businessmen and politicians would be highly corrupt.

Though a decade old, the agreement hit the media like a bomb, as old guard politicians scrambled to explain the essence of the pact.
Juris Bojars, former leader of the Latvian Social Democratic Workers Party, admitted that his party had struck a deal with Ventspils Mayor Aivars Lembergs, who is currently in jail awaiting trial.
Commenting on the pact in an interview with the Russian language daily Chas, Bojars said, "We didn't sell ourselves to Ventspils 's it's he [Lembergs] that sold himself to us in order to procure influence in Parliament."
When asked why the contract came to light now, Bojars said it was because the People's Party, which is part of the ruling coalition, is in trouble and needs to deflect criticism.
Bojars also stated that former fellow party members Egils Baldzens and Juris Salkazanovs received special "grants" from Lembergs, presumably as a part of some agreement.


Baldzens has denied the allegations, and both Baldzens and Salkazanovs are considering taking court action against Bojars.
The Prosecutor General's Office has asked Domburs to provide information about the document shortly after he made it public on the show.
Former LSDSP leaders have pointed out that the agreement they had with Lembergs was in line with their party's program and that the document's secrecy can be attributed to poor relations with the ruling People's Party.
Lembergs has denied that he forged a secret agreement with the LSDSP leaders.
"I understand the political emotions my opponents are feeling due to the fact that Lembergs has not signed the agreement," said the mayor in a statement. "It is no longer a sensation. Lembergs has not given any money for passing political decisions to LSDSP, Bojars, Egils Baldzens or Peteris Salkazanovs," he said.

Lembergs did confirm, however, that his regional party forged an agreement with LSDSP preventing the privatization of national monopolies such as the State Forest company, Latvenergo power utility, Latvian Railways, and Lattelecom telecommunications.
He defended the move, saying that "if it was not done, there could be a significant rise in the prices of electricity, heating, rail and telecommunications services […] I am surprised that some people are worried that the privatization never took place, I would like to ask them what harm has been done to Latvian citizens by not selling off the largest government-controlled monopolies, except for Latvijas Gaze gas utility."

New Era founder and former Prime minister Einars Repse has also weighed in on the scandal. Repse said that these sorts of agreements between businessmen and politicians do exist in Latvia, noting that their existence is the only way to explain the influence of the so-called oligarchs on politics. He asserted that other agreements of this sort would soon come to light.
Repse also said that people should regard with a certain amount of skepticism the comments of Prime Minister Kalvitis, who told Diena on April 13 that Lembergs had a similar deal with Repse's New Era.

Repse noted that it was Kalvitis who had spearheaded the sell-off of Ventspils Nafta, which is now completely under Lembergs' control. He said that Kalvitis had been "working with Lembergs to the last moment."
LSDSP won 14 seats in the 1998 parliamentary elections, which was the most seats that the party ever managed to control. The party is now defunct, however, as in recent elections they have been unable to overcome the five percent barrier required to hold seats in Parliament.