RIGA - The prosecutor's office has revealed that nearly 130,000 lats (170,745 euro) have gone missing from the anti-corruption bureau's coffers in a growing scandal that may cost the organization's head his job.
Prosecutor General Janis Maizitis told journalists on May 20 that the missing money included 89,868 lats, 38,445 euros and 27,287 dollars. The news sparked a flurry of activity among politicians, KNAB officials and the media.
"[KNAB head Aleksejs] Loskutovs sees this as a big blow. He hopes that KNAB, as an anti-corruption institution, has formed strong working results in the past five years, and [this scandal] won't disrupt the community trust," a KNAB spokesman said.
The possibility that a large sum of money could be stolen from the anti-corruption bureau because of poor bookkeeping practices was the source of a major scandal near the end of 2007. When former Prime Minister Aigars Kalvitis tried to sack the KNAB chief over the errors, thousands of people took to the streets to demand the government's resignation.
Now Loskutovs may lose his job for not keeping a tight enough watch over the institutions finances.
"We should remember that the prevention and combating of corruption is the instrument that leads us to good state administration and a lawful state. If the KNAB uniform has been stained, it has to be washed clean," President Valdis Zatlers said in a May 26 interview with LNT.
Prime Minister Ivars Godmanis has ordered the Auditors Office to conduct a complete probe of every case KNAB has dealt with since it was created 's a total of 213 's to find out if it is possible any more money has been stolen.
Both the president and the prosecutor general have said they will not make any recommendations on Loskutovs' post until after the investigation has been completed.
Loskutovs, for his part, said he is not prepared to step down over the affair.
"My responsibility should be assessed by competent authorities. When I see their decision, I will consider my further actions," Loskutovs told journalists on May 20.
The missing money amounts to more than simple theft. Many of the bills which were stolen, prosecutor Velat Zaluksne said, had their numbers recorded and were crucial evidence in ongoing investigations.
"After finding out about this missing money, KNAB immediately started criminal proceedings so the results would show who the guilty person is… The director is sure that the guilty person will get punished," the KNAB spokesman said.
KNAB has already sacked two employees over the affair, and more firings may be on the way. In mid-April, the organization sacked Indra Veipa, head of the KNAB division tasked with ensuring confidentiality, and Janis Isma, a chief specialist from the division in charge of keeping the money seized in raids. They are both facing criminal charges.
