After a high-profile investigation into possible fraud in the field of government IT procurement, Latvian agencies began to reassess their cooperation with the companies of entrepreneur Aigars Ceruss. This concerns tens of millions of euros and projects that are crucial for the functioning of public services, tax systems, and even the defense sector.
Aigars Ceruss's business came into the spotlight after the entrepreneur spent two weeks in custody in March. The magazine Ir examined how his associated companies have been winning government tenders for years and what consequences the scandal has already caused for state institutions, writes LETA.
According to the electronic procurement system, since 2015, seven companies where Ceruss is the ultimate beneficiary have signed more than 300 contracts with 75 government institutions. They were involved in the development of IT systems, security audits, and consulting for various agencies.
Among the largest clients was the State Revenue Service (SRS). In recent years, Ceruss's structures have received contracts there totaling 7.7 million euros. This includes a contract for 3.5 million euros for the support and development of the excise goods accounting system, signed last year.
After the scandal broke, some agencies have already refused to cooperate. The contracts were terminated by the State Agency for Digital Development and the SRS. The tax service explained that the decision was made after receiving a letter from the Satversme Protection Bureau (SPB).
At the same time, many contracts continue to be in effect. For example, the company Corporate Systems is still involved in the development of the judicial system E-lieta. Ceruss's firms also remain IT service providers for the Ministry of Agriculture and recently received orders related to the defense sector.
The scandal has gone beyond Latvia. The German transport and logistics concern Deutsche Bahn planned to involve Ceruss's company in the design of a data center in Uzbekistan, but after news of the investigation, it withdrew from cooperation. The entrepreneur himself describes what is happening as a "Lynch trial."
European Prosecutor Gatis Doniks stated on the program 1:1 on Latvian television that the investigation may also affect other government procurements, in addition to the already known case of the State Agency for Digital Development. According to him, the investigation believes that the suspects acted as an organized group, and people "from their circle" were appointed to positions related to procurement in various institutions.
The SRS has not yet directly stated whether the largest active contract will be terminated. The deputy director general of the service, Janis Upmanis, only noted that the agency would act in accordance with the recommendations of the security authorities. Currently, the volume of work actually completed under the contract for 3.5 million euros is less than 10,000 euros.
The history shows how deeply private IT contractors are embedded in the operation of Latvian state systems — and how one scandal can affect dozens of institutions at once.
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