In Latvia, it is proposed to control public procurement using AI 0 10

As a representative of the initiative, Juris Ernbergs is mentioned. He notes that in Latvia, state and municipal procurement is one of the main ways to spend public funds. Although data in the Electronic Procurement System is publicly available, it is often difficult for society to understand how decisions about winners are made, Ernbergs believes.

According to the author of the initiative, there is currently no simple and objective tool that would allow for assessing whether procurements are conducted at market prices, analyzing competition and market participants, as well as understanding how the procurement commission makes decisions.

This, in Ernbergs' opinion, creates a risk of inefficient use of public funds and reduces public trust in government management. The initiative proposes to create an independent AI system that will analyze all state and municipal procurements based on open data.

Ernbergs suggests that the system compare procurement prices with market prices for similar or equivalent goods and services. He also proposes to analyze market participants and identify potential concentration of winners, as well as provide an independent analytical assessment of the most economically advantageous offer.

He also suggests that for each procurement process, the system publicly display both the AI analysis and the final decision of the procurement commission.

"The AI system will not make decisions but will serve as an analytical tool that helps society and institutions better understand the procurement process," the initiative states, emphasizing that the system will only work with publicly available data and will not disclose commercial secrets.

Ernbergs believes that the solution can be implemented gradually, starting with a pilot project, and funded through the state budget and European Union digital funds. In his opinion, such a system will significantly increase the transparency of public procurement and public trust.

As reported, the State Police, as part of a criminal process initiated by the European Public Prosecutor's Office (EPPO), detained 21 people on suspicion of fraud in IT procurements amounting to 1.5 million euros, including public officials.

As a preventive measure, arrest has been applied to public procurement specialist Ainārs Biders, former director of the State Digital Development Agency Jorens Liepe, and owner and head of the Corporate Solutions group of companies Aigars Ceruss.

The criminal process was initiated at the end of last year and is classified under the articles of the Criminal Law on large-scale fraud committed by an organized group, as well as on the legalization of criminally obtained funds on a large scale by an organized group.

According to information obtained during the investigation, the organized group entered into an illegal secret agreement to pre-determine winners in public procurements for at least six projects funded by the European Regional Development Fund, amounting to up to 1.5 million euros. There are suspicions that contracts were illegally secured with the assistance of public officials, and the illegally obtained profits were distributed among the participants.

The EPPO press release also noted that the implementation of some projects may pose potential risks to state security, as they may affect elections and democratic processes.