Court acquits former members of the LDz board in the case of 1.5 million euros 0

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Court acquits former members of the LDz board in the case of 1.5 million euros
Photo: LETA

The Kurzeme District Court in Saldus today acquitted four former members of the board of the state joint-stock company "Latvijas dzelzceļš" (LDz), including the former head of the company, Ugis Magonis, who were accused of abusing their official position for selfish motives, the LETA agency found out.

The prosecutor's office informed the LETA agency that they would request the full text of the verdict and, after reviewing it, would decide on filing an appeal.

The accused in the case were Magonis, Edvins Berziņš, Aivars Strakšas, and Eriks Šmuksts.

The former officials were accused of abusing their official position for selfish motives, resulting in serious consequences, as the state suffered property damage amounting to more than 1.5 million euros, the prosecutor's office previously informed LETA.

According to the indictment, the members of the LDz board facilitated the establishment of a new executive body—the Presidential Council—transferring to it rights and duties that fell within the competence of the board, in order to receive additional income for performing their direct duties, for which legal payment was already provided.

According to the prosecutor's version, the accused, from January 1, 2013, to August 18, 2019, while simultaneously holding positions on the board and in the Presidential Council, unlawfully received additional income for performing their direct duties. Thus, the state suffered property damage amounting to 1,553,896 euros.

The General Prosecutor's Office initiated this criminal process in February 2020, assigning the investigation to the Bureau for Prevention and Combating Corruption, which, after completing it, transferred the materials of the criminal case to the prosecutor's office of the Riga judicial district for the initiation of criminal prosecution.

As previously reported, the Presidential Council in LDz existed for nine years—from September 2010 to October 2019. It was a structural unit that was artificially allocated and transferred the functions of the management board of the capital company, even though the duties of the Presidential Council were already within the competence of the board, for which its members received remuneration. On October 17, 2019, the LDz board decided to terminate the activities of the Presidential Council.

During the existence of the Presidential Council until 2015, the chairman of the company was Magonis, and from 2016 to 2019—Berziņš, who had been a member of the board since 2011.

Strakšas also worked on the company's board during the existence of the Presidential Council from 2008 to 2019, from 2016 to 2020—Ainis Sturmanis, and from 2011 to 2019—Šmuksts.

In May 2019, the then Minister of Transport, Talis Linkaits, expressed distrust towards 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 remuneration 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 remuneration provided for by regulations.

In early 2020, Linkaits submitted a statement to the General Prosecutor's Office.

Currently, Magonis is also accused of corruption in a criminal case alongside Estonian entrepreneur Oleg Osinovskis. The first-instance court acquitted both, however, the prosecutor's office filed an appeal.

At the end of 2025, the Riga District Court, unlike the first-instance court, found Magonis and Osinovskis guilty in the bribery case, sentencing Magonis to two and a half years in prison and Osinovskis to a fine of 151,700 euros.

The court also ordered the partial confiscation of Magonis's property—a Mercedes Benz car, more than 800,000 euros, and three pairs of wristwatches. Osinovskis, as an additional punishment, is prohibited from participating in state and municipal procurement, as well as procurement by their enterprises in any status for three years.

The court ordered the confiscation and transfer to the state budget of the bribe itself—499,500 euros.

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