Pressure builds on Loskutovs

RIGA-- Latvian Prime Minister Ivars Godmanis slammed the work of the CorruptionPrevention and Combating Bureau (KNAB) on June 10, despite advice from Prosecutor GeneralJanis Maizitis instructing politicians to keep quiet about the matter.

Speaking to the press after a government meeting which decided to establisha commission to investigate missing money within KNAB, the premier said:"It is not just about co-responsibility, but also about the organizationof work. The documents are here and the audit shows that the organization ofwork, distribution of duties and decision making is at the lowest level."

Godmanis cited the facts that employees of KNAB must have the personalapproval of KNAB director Aleksejs Loskutovs, that the bureau's decisions arenot published internally, and that there is no separate auditing department.

"There is no system," claimed Godmanis.

He also said that the only audit had been carried out in 2003 and it hadbeen signed by KNAB deputy head Juta Strike.

"Where are other years?" asked the prime minister.

Asked about liquidation of KNAB,Godmanis said that the bureau should continue its work, but Loskutovs' dutiesshould be taken over by his deputy Alvis Vilks as an interim measure.

Two KNAB employees are being held over charges that they stole around135,500 lats (EUR 193,000) over the course of several years. Charges have beenbrought against Indra Veipa, head of the KNAB department tasked with ensuring confidentiality, andJanis Imsa, a chief specialist.

The commission formed to probe the affair will make its decision by June 16,said Prosecutor General Janis Maizitis.

The commission is headed by the prosecutor general, plus the ConstitutionProtection Bureau (SAB) head, the Security Police head, the parliament nationalsecurity committee chairman and Defense Minister Vinets Veldre.

Maizitis told the press that the commission will assess whether Loskutovscan be held responsible for a lack of oversight and may be subject todisciplinary offences as a result. Loskutovs is not suspected of anyinvolvement in the crime, but clearly it is hugely embarrassing if the nation'smain anti-corruption body is shown to have had serious corruption problems ofits own extending over a period of years.

As a result, Loskutovs' position looks increasinglyuntenable, though so far he has consistently refused to consider handing in hisresignation. The great irony of the whole episode is that Loskutovs' ownofficers may end up doing exactly what the government of Aigars Kalvitis failedto do a year ago and cost him his job.