Human rights court accepts Banka Baltija case

  • 2001-06-14
  • Nick Coleman
RIGA - The European Court of Human Rights has accepted the case of Alexander Lavent, the former head of the collapsed bank Banka Baltija, who says that since his arrest nearly six years ago he has been the victim of persecution by the state.

Lavent, formerly the chairman of the bank's supervisory board, collapsed in a Riga regional court on Sept. 5 last year, after judge Inara Steinerte cut him off during his closing speech. She said he was threatening the court and deviating from the subject.

Lavent was rushed to hospital and the trial, which included him and two others, Talis Freimanis and Alvis Lidums, has remained on hold ever since.

Kristina Malinovska, Latvia's representative at the Strasbourg court, said that on June 6 the human rights court ruled some of Lavent's complaints admissible for trial. But a ruling in Lavent's favor in Strasbourg might not result in the case against him being dropped, she said.

"If the court finds any violation by the state then the state is obliged to end the violation. Lavent could be released from prison, provided he were still available for trial. But the court proceedings would not necessarily end. It all depends on the judgment in Strasbourg."

The defendants are charged with damaging Latvia's monetary system, misappropriation of property and other crimes relating to the collapse of Banka Baltija in June 1995. The bank's debts totaled $400 million.

Malinovska said the Strasbourg court is now expected to offer its assistance in reaching a friendly settlement before hearings begin. The state is likely to be given time to submit additional material and Lavent is expected to submit a compensation claim.

Meanwhile, efforts to compensate those who lost money in the collapse are now focused on Banka Baltija's auditors, Coopers and Lybrand, who have since become part of PriceWaterhouseCoopers. The law firm for Banka Baltija's court-appointed liquidators Invest Riga - Brize, Eglitis and Partners - is suing Coopers and Lybrand in Sweden for $150 million, alleging that the company's 1993 audit of Banka Baltija, which gave it a clean bill of health, was negligent and fraudulent.

Lawyer Juris Eglitis said compensation of less than $150 million would be accepted if the dispute can be settled out of court. "If we win $100 million, we will be able to pay each of the bank's depositors 500 lats ($777.6)."

A preliminary court hearing is scheduled for Aug. 23 in Stockholm, he said. The length of Lavent's trial, which began nearly four years ago, is not unreasonable, he added.

"This is one of the largest criminal cases in the world. There is so much evidence to go through. It is clear this process is necessary," Eglitis said. Banka Baltija's depositors have so far received around 150 lats each.