The Kurzeme District Court in Saldus plans to continue the consideration of the criminal case against four former members of the board of the state-owned company Latvijas dzelzceļš (LDz), including former head Uģis Magonis, accused of abuse of power for selfish purposes, on November 7 at 10:00 AM in a closed court session, the LETA agency learned in court.
The next court hearing is scheduled for November 19 at 10:00 AM.
Magonis, Edvins Berziņš, Aivars Strakšas, and Eriks Šmuksts are accused in the case.
The former officials are charged with abuse of power for selfish purposes, resulting in serious consequences, as the state incurred property damage amounting to more than 1.5 million euros, the prosecutor's office reported.
According to the charges, members of the LDz board established a new executive structure — the Presidential Council, transferring rights and responsibilities that fell within the board's competence to it, in order to receive additional income for performing their direct duties, for which they were already receiving legal compensation.
The accused, according to the prosecution, held positions in both the board and the Presidential Council simultaneously from January 1, 2013, to August 18, 2019, unlawfully receiving additional income for the performance of their primary duties. As a result, the state incurred property damage of 1,553,896 euros.
The General Prosecutor's Office initiated criminal proceedings in this case in February 2020, assigning the investigation to the Bureau for Prevention and Combating Corruption. After the investigation was completed, the case materials were transferred to the Riga District Prosecutor's Office to initiate criminal prosecution.
As previously reported, the Presidential Council within LDz existed for nine years — from September 2010 to October 2019. It was a structural unit to which the functions of the company's board were artificially transferred, for the performance of which board members were already being compensated. On October 17, 2019, the board of LDz decided to terminate the activities of the Presidential Council.
During the existence of the Presidential Council until 2015, the chairman of the company's board was Magonis, and from 2016 to 2019 — Berziņš, who had also been a member of the LDz board since 2011.
The board of the company during the existence of the Presidential Council from 2008 to 2019 also included Strakšas, from 2016 to 2020 — Ainis Sturmanis, and from 2011 to 2019 — Šmuksts.
In May 2019, then Minister of Transport Talis Linkaits expressed no confidence in Berziņš, Strakšas, and Sturmanis. In August, the council terminated employment relations with Berziņš and Strakšas, while Sturmanis left his position in April of the following year.
As established by the State Audit Office in 2020, all compensation paid to the members of the Presidential Council since its establishment was unjustified, as their duties fell within the competence of the board, which was already receiving the legally prescribed payment for it.
In early 2020, Linkaits submitted a statement to the General Prosecutor's Office.
Currently, Magonis is also accused in a corruption case along with Estonian entrepreneur Oleg Osinovskis. The first-instance court acquitted both, but the prosecution filed an appeal.
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