RIGA - The decision by Latvian prime minister Aigars Kalvitis to dismiss the head of the KNAB anti-corruption bureau looks like it might be about to backfire spectacularly and reveal that financial irregularities are rife throughout government ministries.
The Latvian State Auditor's Office has indicated that "gross" violations have been uncovered in the Latvian Justice Ministry.
Latvia's chief auditor Inguna Sudraba broke the news to the press ahead of a government meeting at which ministers were expected to discuss alleged financial irregularities in the Latvian anti-corruption bureau (KNAB).
The chief auditor voiced regret that following the results of several audits over the last couple of years the government has not launched a debate to find out "why the State Auditor's Office refuses to release findings to the Justice Ministry for the second straight year, which is a gross violation, because we [the State Auditor's Office] are telling you that we do not trust you [the Justice Ministry], and that taxpayers, too, cannot trust the financial reports released, for instance, by the Justice Ministry".
"And we are speaking about tens of millions of lats," Sudraba stressed.
The chief auditor also pointed at the lack of order in public property matters in Latvia, noting that the real value of public properties is not reflected in official reports, which creates a huge risk of massaging the figures by means of property transactions.
Sudraba promised to release the results of financial audits in other ministries as well, implying that the findings are likely to be highly critical of the management of public assets. The chief auditor voiced hope that the government's response to these results will be as resolute as in the case of the anti-corruption bureau, whose chief Aleksejs Loskutovs has been suspended for the time of an inquiry into alleged financial violations.
On that subject, Latvian Prime Minister Aigars Kalvitis has denied there is any link between his decision to suspend Loskutovs and KNAB investigations into the affairs of ex-prime minister Andris Skele, who is regarded in some circles as a patron of Kalvitis.
"I am ashamed that such arguments are used. All the investigations are performed by the prosecutor's office, not KNAB. There is no reason to mislead the public. KNAB is in no way linked to these cases. This even more points to the political activities of the institution head [i.e. Loskutovs]. The official [Loskutovs]. says that Lembergs or Skele dismissed him. What is the connection of Lembergs or Skele with the non-performance of normal financial bookkeeping at the institution? It seems unacceptable to me, that the institution head tries to speculate in this manner," said Kalvitis.
"It is enough for me as prime minister. I have long seen how KNAB breaks the law and the institution head has lastly been in a conflict of interests. Considering public sensitivity, I have not taken decisions. For example, concerning the bonuses that the KNAB head paid to the woman he lives with. This lasted for more than half a year," Kalvitis explained.
