Scandal Surrounding the Electoral System: Contract Terminated, New Contractors Being Sought 0

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Scandal Surrounding the Electoral System: Contract Terminated, New Contractors Being Sought

The Ministry of Smart Governance and Regional Development (MURR) has terminated the contract with the developer of the electoral platform "RIX Technologies" and proposes instead to transfer the development of electoral systems to companies "Latvijas mobilais telefons," "Tet," and "Latvijas valsts meži," which are partially or fully state-owned, LETA reports.

As reported by the LETA agency, the advisor to the Minister of Smart Governance and Regional Development, Sabine Spurke, stated that such changes are proposed "to ensure the unquestionable legitimacy of the elections to the Saeima and to avoid potential reputational risks."

These companies are being proposed by the Ministry of Smart Governance and Regional Development (MURR) as contractors for the work, as "the state is involved in their management, they have implemented significant projects in state IT infrastructure, and they employ highly qualified specialists."

The solution proposed by the MURR stipulates that, at the request of the Cabinet of Ministers, contracts for software development will be concluded in accordance with the provision of the Public Procurement Law that allows for an exemption from the procurement procedure.

In the contracts for development, it is planned to adhere to the previously established significant deadlines for development set by the Central Election Commission (CEC) to ensure the initially determined schedule for the technological support of the electoral platform, which was agreed upon in the fall of 2025 between the CEC and the State Agency for Digital Development.

The MURR has decided to submit this proposal for consideration by the Cabinet of Ministers.

The ministry reported that the contract with the developer of the electoral platform "RIX Technologies," which, as a result of the procurement in the electronic catalogs of the electronic procurement system, obtained the right to perform software work on the electoral platform, has been terminated because the company has not fulfilled its obligations arising from the technical assignment to date.

The Minister of Smart Governance and Regional Development, Raimonds Čudars, recently announced in the Saeima that a contract has been concluded for the adaptation of electoral systems for the Saeima elections. The company "RIX Technologies" assured that it could complete the work by June 30, but pointed out certain obstacles.

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

In this case, as a preventive measure, arrest has been applied to the already suspended public procurement specialist Ainārs Biders, former director of the State Agency for Digital Development Jorens Liopes, and owner and head of the "Corporate Solutions" group of companies Aigars Ceruss, who was later released from custody.

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 and the legalization of criminally obtained funds in large amounts, committed by an organized group.

According to information obtained during the investigation, an organized group of individuals entered into an illegal secret agreement to pre-determine the 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 the contracts were illegally secured with the help of public officials, and the illegally obtained profits were distributed among the participants.

The EPPO noted in a press release that the implementation of some projects may pose potential risks to national security, as they may affect elections and democratic processes. Similar concerns about threats to democratic processes have been expressed by several politicians, including the President of Latvia, Edgars Rinkēvičs.

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