Riga Castle, KNAB building and University of Latvia center are among objects built by the illegal construction cartel participants

  • 2021-08-11
  • LETA/TBT Staff

RIGA - The illegal construction cartel made agreements on such construction projects as the Riga Castle, the Academic Center of the University of Latvia in Tornakalns, the Corruption Prevention Bureau (KNAB) building, Liepaja jail an others, according to the information published by the Competition Council.

The total of 77 construction projects include several projects in Riga, including several education and culture institutions. There are projects also in other Latvian cities, education institutions, sports centers, hospitals, industrial parks, residential buildings, shopping centers and others.

As reported, participants of the construction cartel uncovered by the Competition Council had been engaged in at least 70 procurements worth EUR 686,989,991, said Competition Council's representative Ieva Smite in a press conference Tuesday.

Based on transcripts of audio recordings handed over by the Corruption Prevention Bureau (KNAB), the Competition Council concluded that representatives of the construction companies in the time period between 2015 and 2018 had 12 meetings, at least three times a year, discussing terms of the distribution of procurements. In all, some 90 procurements were mentioned in the meetings, of which 70 procurements were identified.

The Competition Council has slapped fine worth EUR 16,652,927 on ten participants of the cartel.

The participants of the construction cartel include Skonto Buve, Latvijas Energoceltnieks, Velve, Arcers, Rere Buve, Re & Re, RBSSKALS Buvvadiba, Abora, LNK Industries and Merks. RBSSKALS Buvvadiba has already been liquidated, therefore a fine has not been imposed on the company.