Summary of ""Viens pret vienu" - Eiropas prokurors Gatis Doniks"
Overview
The European Public Prosecutor’s Office (EPPO) in Latvia announced the dismantling of an alleged organised criminal group that rigged IT public procurements. The operation, described by European Prosecutor Gatis Doniks, followed nearly three years of criminal-intelligence and operational work (surveillance, data seizures, analytics) carried out jointly with the State Police and other agencies.
Key findings (summary) - At least six projects financed by the European Regional Development Fund were allegedly manipulated. - Minimum suspected loss/contract value: about €5 million. - Terabytes of data were seized; financial tracing (including cryptocurrency keys) is underway. - EPPO expects the investigation to take several years (three to four years is a European average).
Scope and current status of the probe
- Roughly 20 people have been named as suspects. Detention numbers have changed during the dynamic investigation; three people were reported in pre-trial detention at the time of the interview.
- The case began after a whistleblower came forward. Long-term covert evidence-gathering led to a formal criminal case opened late last year.
- Investigators allege manipulation of at least six ERDF-funded projects; discovery is ongoing and the list of implicated procurements may expand.
- Massive digital seizures require lengthy review; financial-tracing efforts target illicit profit flows, including crypto-assets.
- EPPO anticipates the investigation will likely last several years.
Alleged modus operandi
Investigators describe a coordinated scheme that included:
- Preparing or tailoring technical specifications in advance to favour preferred companies.
- Placing insiders in advantageous positions within state institutions to steer procurement decisions.
- Using structured, secretive communications (for example, dedicated phones restricted to Wi‑Fi only).
- Central importance of one umbrella contract from the State Digital Development Agency.
- Named contractors cited in coverage include Agil and Co, Corporate Consulting (linked to Aigars Cerus), and certain auditing firms.
Arrests and named individuals
- Ainars Biders — procurement consultant and technical-specification author; remanded in custody at investigators’ request.
- Aigars Cerus — owner/manager of Corporate Solutions and alleged beneficiary of Corporate Consulting; arrested after returning from abroad. Corporate Consulting denies wrongdoing.
- A former director of an anti‑corruption agency was also remanded (name garbled in subtitles).
Election-related IT and security concerns
- Some work under the umbrella contract involved election systems (scanner software and election‑platform additions).
- EPPO warned national authorities, including the President, about risks; the President decided to count parliamentary (Saeima) ballots manually.
- Investigators found parts of some systems or modules had been developed in third countries (outside the EU), raising potential national‑security and integrity risks.
- The State Security Service is assessing whether outside development introduced vulnerabilities; this review may have influenced election procedure and vetting decisions.
Institutional responses and audits
- The Ministry requested internal auditors to review recent procurements by the State Digital Development Agency.
- Doniks recommended independent scrutiny (for example, AFKOS/AFKUS, the State Audit Office, or OLAF) to avoid conflicts of interest and ensure thoroughness.
- Security vetting is required for operators of critical infrastructure; security authorities are involved and continue assessments (including a digital-wallet procurement where an implicated person may be the true beneficiary).
Municipal and healthcare procurement activity
- EPPO continues activity in municipal procurement cases (examples: Valmiera, Valka, Jēkabpils). Some matters are progressing toward trial; others remain under investigation.
- Doniks defended investigative secrecy and process while acknowledging reputational effects on accused officials.
- Many new EPPO cases in Latvia this year relate to healthcare procurement. Investigators report frequent overpricing of medical equipment (sometimes up to three times market price), which inflates public costs and can reduce service capacity.
Cross‑border VAT fraud and other economic crime
- EPPO and partner agencies exposed an international VAT‑evasion network (coverage referenced “Caribbean Funds” content creators on social media).
- Latvian citizens are alleged to have led schemes that caused significant tax losses across EU countries. EPPO collaborates with Europol and EU tax authorities to recover losses in Germany, Austria, Italy, and elsewhere.
- Doniks emphasised that VAT fraud causes large EU budget losses and suggested EU‑level legislative action is needed to better address such schemes.
Criminal justice process and capacity issues
- EPPO’s investigative approach combines criminal intelligence with evidence‑based prosecutions; negotiated plea agreements are frequently used to secure convictions and recover losses.
- Doniks noted resource constraints both within EPPO and in the justice system.
- He highlighted court capacity bottlenecks — insufficient numbers of judges and procedural tools — which prolong trials, and urged reforms to provide courts with appropriate instruments and staffing for efficient, continuous hearings.
Practical advice for institutions and media
- Institutions implicated or concerned should:
- Review who prepared technical specifications and procurement documentation.
- Examine procurement timing and related records.
- Consider independent audits when suspicions arise.
- Media outlets and organisations named in procurement stories should conduct internal checks of their procurement documentation and procedures.
Timeline and mandate
- Gatis Doniks’ nine‑year EPPO mandate runs until 30 July 2029. He was one of five prosecutors forwarded for approval when appointed.
Contributors and people mentioned
- Gatis Doniks (European Public Prosecutor; interviewee)
- Ainars Biders (procurement consultant)
- Aigars Cerus (owner/manager of Corporate Solutions; linked to Corporate Consulting)
- Ingmārs Vekters (LSM board member, technology development)
- Armīns Meistars (Attorney General; referenced)
- Vents Armands Krauklis (mayor of Valka; appeared in excerpt)
- Gatis Šlūka (cartoonist)
- “Kazanovskis” (person linked to the Caribbean Funds VAT‑evasion publicity)
- Ms. Rudzīte (Deputy Director of the State Digital Development Agency; referenced)
Agencies and organisations referenced: EPPO, State Police, State Security Service, Corruption Prevention and Combating Bureau (KNAB), State Digital Development Agency, AFKOS/AFKUS (ministry audit body), State Audit Office, OLAF, Europol, national tax/revenue services, and media programmes (DeFacto, Panorama, LSM).
Note: Names and institutional titles reflect auto‑generated subtitles and may contain transcription errors.
Category
News and Commentary
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