The Bureau for Prevention and Combating Corruption (BPBCK) has referred to the prosecutor's office for the initiation of criminal prosecution a case against five employees of the Valmiera municipality, including Mayor Janis Baiks ('Valmiera and Vidzeme'), for possible crimes in attracting European Union (EU) funds.
The Bureau for Prevention and Combating Corruption (BPBCK) reported that the bureau has contacted the European Prosecutor's Office. Officials and employees of the Valmiera municipality are suspected of large-scale fraud and other criminal offenses. These actions were committed during the construction of a production building, for which more funds were illegally attracted from the European Regional Development Fund (ERDF) and the state budget of Latvia than permitted by law.
Local authorities can use ERDF funds to construct a production building on land they own, which is then offered for rent to businesses after the project is completed. If the potential tenant of a specific property is unknown and is selected through an open competition, the municipality is entitled to attract up to 85% of ERDF funds. However, if the facility is being built for a specific purpose and the potential operator is known, ERDF co-financing is available at a lower rate - from 45% to 55%, with the corresponding company covering a larger portion of the expenses.
The information obtained during the investigation indicates that in the implementation of the industrial building construction project, officials of the Valmiera region did not inform the responsible institutions about the selection of the enterprise and fraudulently attracted more funds than stipulated by regulations.
Acting in a group of individuals in collusion, the officials allegedly fraudulently obtained 671,299.69 euros from the ERDF and the state budget of Latvia, the BPBCK reported.
Additionally, Baiks is charged with abuse of office for selfish purposes, while the other four are charged with aiding and abetting and inciting abuse of office for selfish purposes.
On September 12, 2023, as part of the previously initiated criminal case, BPBCK employees conducted criminal procedural actions, including more than 20 searches, seizures, and interrogations at several locations.
On June 9, 2023, the European Prosecutor's Office opened a criminal case and transferred it to the BPBCK for pre-trial investigation.
