As part of the so-called timber industry case, Latvia’s Corruption Prevention and Combating Bureau (KNAB), acting on orders from the prosecution, detained Agriculture Minister Armands Krauze on Thursday morning.
Economics Minister Viktors Valainis confirmed Krauze’s detention to the LETA news agency.
KNAB confirmed to LETA that it is currently assisting the prosecution service in carrying out procedural actions related to the criminal case.
Since the criminal proceedings in which today’s actions are taking place were initiated by the prosecution service, KNAB urged that all questions be directed to prosecutors.
BOTH KRAUZE’S PHONE AND THE PHONE OF FORMER AGRICULTURE MINISTRY STATE SECRETARY AND CURRENT HEAD OF THE STATE CHANCERY, Raivis Kronbergs, ARE SWITCHED OFF.
As previously reported, the State Audit Office of Latvia had planned on Wednesday to present the results of an audit into the effectiveness of oversight of Latvijas valsts meži (LVM). However, due to a complaint submitted by the Ministry of Agriculture of Latvia, the presentation was postponed.
It had been planned that Prosecutor General Armīns Meisters would also participate in the State Audit Office press conference.
The audit examined state forest management processes, the division of responsibilities and the efficient use of public resources. The review is linked to the so-called timber industry support case.
On the 20th of November last year, the Office of the Prosecutor General of Latvia launched a prosecutorial review into whether state officials acted lawfully when deciding to provide support to timber industry companies.
The review found indications that criminal offenses may have occurred within state institutions
in connection with allegedly unlawful support provided to timber companies through price adjustments in LVM long-term contracts, prosecutors previously stated.
As a result, criminal proceedings were initiated under sections of Latvia’s Criminal Law covering offenses committed in public service.
At the same time, the prosecutorial review has not been completed and is continuing at the Prosecutor General’s office, including in cooperation with the State Audit Office.
Previously, an internal investigation commission concluded that the financial condition of timber industry companies that received government assistance at the end of 2023 was not systematically or structurally unstable during that year. The report cited several factors that raised doubts about the justification for the support granted.
Meanwhile, Krauze had previously claimed that an internal investigation conducted by the Agriculture Ministry found no evidence that the state suffered losses by providing support to timber companies in 2023.
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