The dismissed Minister of Agriculture Armands Krauze stated that the responsibility for decisions regarding support for forest industry workers should be shared by the Ministry of Finance, the Ministry of Justice, and former Prime Minister Evika Silinī. The statement came after the harsh findings of the State Audit Office review concerning Latvijas valsts meži (Latvian State Forests).
Former Minister of Agriculture Armands Krauze believes that the responsibility for decisions regarding support for forest industry workers lies not only with him but also with other state institutions.
Commenting on the findings of the State Audit Office review, Krauze stated that the controversial decisions were approved by the Cabinet of Ministers and that no objections had been raised by any of the involved parties regarding the prepared information report.
According to him, the Ministry of Finance, the Ministry of Justice, and former Prime Minister Evika Silinī should take responsibility.
Krauze also emphasized that he has already borne political responsibility, as he no longer holds the position of minister following calls for his resignation.
At the same time, he disputed the interpretation of the State Audit Office's findings, stating that the auditors did not establish direct damage to the state but only spoke of a decrease in revenues.
Previously, the State Audit Office reported serious deficiencies in the management of Latvijas valsts meži (LVM) and oversight by the Ministry of Agriculture. According to the auditors' assessment, the negative consequences for the state amount to tens of millions of euros.
In particular, the State Audit Office stated that at least 130.3 million euros in additional dividends had not been transferred to the budget. Another nearly 50 million euros, according to the audit, the company will not receive due to decisions to lower timber prices for forest industry workers.
Importantly, the State Audit Office believes that some decisions were made outside the competence of the Cabinet of Ministers and the company's shareholder. The audit itself is directly related to the so-called case of support for forest industry workers, which is currently being investigated by the Prosecutor General's Office.
Investigative actions in the case have already been conducted with ten individuals, including former and current officials of the Ministry of Agriculture, the management of LVM, and representatives of the forestry sector. Among the figures involved are former state secretary of the ministry Raivis Kronbergs, chairperson of the LVM council Zane Drinķe, industry representative Kristaps Klaus and owner of Pata Uldis Mierkalns.
The Prosecutor General's Office is investigating possible abuse of office and illegal provision of support to forest industry workers through price changes in long-term contracts with LVM. At the same time, the prosecutor's review continues in parallel with the criminal proceedings and is conducted in cooperation with the State Audit Office.
Against the backdrop of the publication of the audit and the criminal investigation, the topic of managing state forests and the influence of the forestry sector has become one of the most sensitive political issues in Latvia in recent weeks.
