The European Public Prosecutor's Office (EPPO) has completed a pre-trial investigation into possible fraud and abuse of office related to the use of European Union funds in the Valka municipality.
The EPPO in Riga has completed a pre-trial investigation into possible EU investment fraud and abuse of office in the Valka municipality. Three individuals have been charged in the criminal case, including two municipal officials, one of whom is the chairman of the Valka municipality council, the agency LETA was informed by the EPPO.
The case concerns an EU project implemented by the Valka municipality, which is related to providing state support for the development of entrepreneurial activities in the regions.
According to legal regulations, municipalities can apply for co-financing from the European Regional Development Fund and subsidies from the Latvian state budget, which are used to restore degraded areas for the purpose of developing commercial activities there.
When implementing such projects, municipalities must ensure that the planned project infrastructure is not oriented towards a specific pre-known commercial entity.
During the investigation, it was established that from July 2020 to October 2023, the accused, violating the conditions for receiving state support and legal requirements, committed fraudulent actions. In particular, the chairman of the Valka municipality council abused his official position to fraudulently obtain at least 693,520 euros from the EU project, of which 670,032 euros were funds from the European Regional Development Fund, and 23,488 euros were subsidies from the Latvian state budget.
Investigators believe that a group of individuals, by providing falsified information in the project documentation, unlawfully granted advantages to a specific commercial entity, for which a new production building was constructed.
The accused secretly involved this commercial entity in the selection of the project implementation site and the building design process without informing the project cooperation authority. Furthermore, the project was implemented, and the production building was constructed on a plot of land that did not meet the status of a degraded area. This plot was chosen due to its location next to an already existing enterprise of this commercial entity.
Additionally, abusing his official position, the chairman of the Valka municipality council took on long-term obligations on behalf of the municipality to cover private project expenses amounting to 396,398 euros, which, according to the prosecution, led to serious financial consequences for the municipality and jeopardized the fulfillment of its autonomous functions.
According to the investigation, the collected evidence indicates that the project was implemented not only illegally but also ineffectively, violating the methodology developed by the cooperation authority, resulting in long-term losses for the municipality's budget rather than financial benefits.
The case is expected to be forwarded to court soon.
Leave a comment