Rīgas satiksme cancels another contract over graft scandal

The Rīgas satiksme municipal transport company has cancelled a contract with Moduls-Engineering company over the company's ties to businessman Māris Martinsons, a suspect in a large corruption probe, reported Latvian Radio January 3.

The new Rīgas satiksme board opted for this a day after Latvian Radio contacted the company with questions about a contract with Moduls-Engineering over building a data center worth close to €3m. 

"We had a contract over setting up a data center...its capacity was larger than necessary, should there be any Rīga City Council departments that need to store some data. Nevertheless, upon reviewing this contract at a board meeting, board members decided not to continue the contract.

"Instead, legal experts will be asked to review whether such a storage center is necessary...seeing as a company investigated by the Corruption Prevention and Combating Bureau is involved in construction, it was decided not to continue with the contract," said Viktors Zaķis, spokesman at Rīgas satiksme.

Earlier, Rīgas satiksme cancelled all cooperation with the Velve company, which also has ties to Martinsons.

Martinsons is one of the people in custody over a probe into alleged corruption at Rīgas satiksme concerning procurement contracts worth hundreds of millions of euros. 

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Economy