Corruption to evolve in 2009

  • 2009-01-07
  • Staff and wire reports

CORRUPTION: The deputy head of the corruption watchdog said that bribe takers would suffer as corruption evolves to more complicated schemes in the coming year.

RIGA - Corruption in Latvia is unlikely to decline in 2009, but it will become different, according to the deputy head of the anti-corruption bureau.
Deputy head of the Latvian Corruption Prevention and Combating Bureau (KNAB), Juta Strike told the Baltic News Service the New Year is set to usher in a new more aggressive brand of corruption in Latvia, with those wanting to subvert the system devising increasingly complicated schemes to avoid being caught.
Strike predicts that current tough economic times will change the face of corruption with bribe takers expected to take a direct hit.

She said bribe takers can no longer hope for as many cash offers and will have to change their tactics and become more aggressive if they are to continue their illegal activities.
Corrupt officials and bribe givers are expected to develop sophisticated bribery schemes and involve more mediators in a bid to avoid detection from authorities.
While in the past corrupt officials could choose among several "bids" and pick the most lucrative bribe, now KNAB expects the number of bribe soliciting or even extortion cases to rise amid dwindling cash resources.
"While the economy was still developing actively they sometimes did not even have to demand or extort, they could just wait for an offer," Strike said.

The KNAB officer also predicts corruption levels will become more active amongst officials wanting to maintain their previous life standards.
While so called administrative corruption had previously been on the decline, it might increase again this year if people in positions of power seek to thwart the system for their own personal gain.
Strike said some officials may attempt to abuse their powers by stealing public property such as fuel.
Corruption risks will also be high in the judiciary, as lawsuits against debtors are likely to grow.

Although austerity measures have forced authorities to scrap many purchases, high corruption risks can still be expected in public procurements, as competition increases. Corruption is also likely to rise at government institutions issuing building permits and conducting various inspections, the official said. 
KNAB has previously expressed concerns about government amendments to the Public Procurement Law, which it believes will significantly increase the risk of corruption on public procurement and result in further economic losses to the country.

Even though the finance minister has voiced his confidence about businessmen's support to the amendments, KNAB representative Andris Vitenbrugs told BNS the organization had received opposing opinions. These included concerns that the amendments will promote state and municipal procurements without clear criteria and control, preventing free competition.

According to Vitenbrugs the bill and its annotation has no economic estimations on possibilities to save budget resources, and does not address the potential for tenders to be won by the company that has relations with the decision maker 's not on the basis of the best, cheapest or most competitive offers.
Investigations carried out by KNAB found state officials tend to offer a particular procurement agreement to a particular candidate for a bribe of about 10 percent per agreement.

Indeed KNAB regularly receives complaints by businessmen and individuals relating to possible corruption among state officials.
On the other hand, Strike believes Latvian people are increasingly unlikely to tolerate corruption in 2009.
Judging by current trends, she believes that people will report corruption cases more actively and will become more intolerant towards such offenses.
"People will become more active, and they will have more time to act in case something happens. They will think harder why all this happened and will be less tolerant to injustice. So we believe that they will become less tolerant to corruption," she said.