Prime Minister Andris Kulbergs has imposed a 30-day moratorium on large purchases in the information and communication technology (ICT) sector to review their feasibility and procedures.
The restrictions do not apply to purchases amounting to up to 142,000 euros.
After the meeting of the Information Society Council, Kulbergs told reporters that this does not mean the cessation of purchases: a verification period has been established during which the industry is invited to present its solutions.
To discuss further actions, the Prime Minister agreed with representatives of the ICT sector to meet again in a month, on July 27. He noted that there have been no meetings of this level with the industry in the last six years, although investments in this area and the utilization of funding from European Union (EU) funds have significantly increased.
Kulbergs emphasized that both borrowed state funds and EU resources must be used efficiently. In his opinion, investments in ICT should contribute to increased productivity and provide tangible benefits to society and entrepreneurs.
The head of government also referred to recently expressed public concerns regarding the management of ICT projects. He pointed out that approximately 30 million euros were spent on purchasing ICT services in the first six months of this year, while last year 50 million euros were spent for these purposes. The Prime Minister criticized the practice of purchasing labor hours instead of final solutions, indicating potential risks to transparency and efficiency.
According to information available to the Prime Minister, 452 million euros were spent on ICT projects in 2024 and 2025. At the same time, 38% of the projects were serviced by three companies. Kulbergs suggested assessing the competitive conditions and more frequently considering the possibility of using existing solutions on the market.
He also noted that in public administration, more than 1,664 IT specialists work in over 150 institutions, yet outsourcing services are also used. Industry representatives at the meeting confirmed their readiness to make proposals to improve the situation.
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