RIGA - Latvian prosecutors have arrested the equity holdings belonging to Ventspils' beleaguered mayor, Aivars Lembergs, as well as those under the names of his son and daughter.
Though the value of the assets was unclear, the move ups the ante in the most dramatic crackdown on corruption since Latvia gained independence.
The size and scope of the equity freezing also indicates the breadth of Lembergs' influence in Ventspils business, something he strenuously denied for many years.
According to the decision dated Jan. 23 from the Prosecutor General's Office, shares in 16 companies 's including five public companies and eleven private companies 's either directly or indirectly belonging to Lembergs, were arrested, Latvia's business registrar said.
News of the arrest came several weeks after the daily Diena reported that shortly before Christmas state prosecutors had decided to arrest all property abroad known to belong to Lembergs, his son Anrijs Lembergs and daughter Liga.
Not long after Lembergs, in an interview with Neatkariga Rita Avize, a daily paper that he uses as a mouthpiece, blasted the Diena report for containing misleading information.
Among some of the more prized assets are a 29.3 percent stake in Ventbunkers, 23.2 percent in Ventceb, 45.1 percent in Kalija Parks, 30.2 percent in Ventspils Tirdzniecibas Osta and 15.12 percent in Baltic Coal Terminal, according to reports.
Several of these companies in recent years have been paralyzed by shareholder infighting both before and after Lembergs was arrested in March 2007.
It was not the first instance that prosecutors arrested property belonging to Lembergs, who for many years led the Greens and Farmers Union, a ruling coalition party, and his family members. Some of his domestic assets, including real estate and accounts, were frozen last year when first bribery, extortion and money laundering charges were first brought against him.
The arrest of Lembergs family property applies to bank accounts registered directly and indirectly and company shares registered abroad, including offshore companies. Also arrested are shares of the Netherlands-registered Yelverton Investment, the largest owner of Ventbunkers, and which reportedly manages the Lembergs family's interests.
A 50 percent stake in LSF Holdings, which belongs to Anrijs and Liga Lembergs, was arrested, as well as 24.1 percent of Baltic Juice Terminal.
Other arrested holdings include a 45 percent stake in Mineral Trans Serviss and Seastar each, 25 percent in Ventako and Ventbetons, 33.34 percent in Ventplac, 22.9 percent in Noord Natie Ventspils Terminals, 48.5 percent in Ostas Flote and 33.06 percent in Ventrans Riga.
Lembergs was detained on March 14 as part of a wide crackdown into corrupt relations between business and politics 's the so-called Ventspils officials corruption case. A judge of the Riga District Court has on several occasions ruled to remand him in custody. Prosecutors have so far successfully argued that a free Lembergs would interfere in their case.
The Ventspils mayor appealed the court ruling several times, but the Riga Regional Court and Riga Center District Court upheld his detention, releasing him from jail only in July. Lembergs is currently under house arrest at his house in Puze County.
Lembergs has been charged with large-scale graft and extortion, money laundering and providing false information in his income declaration.
