Anti-graft squad says advisers to Rīgas satiksme may have not worked at all

Take note – story published 4 years ago

The Corruption Prevention and Combating Bureau (KNAB) has informed the State Police that several advisors at Rīga municipal public transport company Rīgas Satiksme may have been employed and salaried although they have actually not done anything for the company.

KNAB concluded after analyzing audit company Ernst&Young report that Rīgas Satiksme could have signed fictitious contracts with a number of advisors, who were paid salaries although they had never actually worked at the company. On April 15, the Corruption Prevention Bureau forwarded the information to the State Police, as the bureau told LETA.

The anti-graft office continues to analyze other facts included in the report.

As reported, KNAB has launched at least three investigations based on Ernst&Young's report on the situation at Rīgas Satiksme.

These investigations are independent of a criminal case on Rīgas Satiksme's tenders that is also investigated by KNAB.

Ernst&Young's report on the situation at Rīgas Satiksme revealed that in the past five years the former company’s board has caused tens of millions of euros in loss by through disadvantageous decisions and cooperation agreements.

Rīgas Satiksme last year signed contracts with 46 persons who were connected to Harmony or Honor to Serve Riga.

Ernst&Young has concluded that Harmony and Honor to Serve Riga members and persons closely associated with the two parties were hired by Rīgas Satiksme as advisors.

For instance, four current Riga City Council members - Sandris Bergmanis, Viktors Paskovs, Igors Kuzmuks, Jefimijs Klementjevs advised Rīgas Satiksme on various matters, for instance, on how to improve Rīgas Satiksme employees' health, as did former Saeima member Aleksandrs Sakovskis and former Riga City Council member Nikolajs Zaharovs, who was paid €3,000 a month for advising Rīgas Satiksme on alternative fuel types.

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