Energy, Latvia, Legislation

Karlis Mikelsons.

Mikelsons' attorney Egons Rusanovs said that he would appeal the court's decision as soon as he could examine the court's reasons for arresting Mikelsons, which would be presented tomorrow, June 18.

Mikelsons has been charged according to the Criminal Law's Section 318 – using official position in bad faith, and Section 195 – laundering of the proceeds from crime. Mikelsons' attorney Egons Rusanovs said he did not know what proceeds these might be.

On the other hand, the charge of misuse of power is connected with a Swiss and a Turkish company, writes LETA.

As reported, Turkish company GAMA GUC Sistemleri Muhendislik ve Taahhut (GAMA) won the Latvenergo tender for reconstruction of the Riga 2nd Cogeneration Plant. The contract with GAMA was signed on March 3. Swiss company AF Colenco was hired as a consultant to monitor technical implementation of the project.

GAMA previously denied any involvement in the detention of the Latvenergo executives.

Mikelsons was detained at his residence on Tuesday at 7:30 a.m. The Corruption Prevention Bureau conducted a number of searches of Mikelsons' offices and homes, seizing various documents, data storage devices as well as cash, Rusanovs informed.

Rusanovs did not deny that Mikelsons was a wealthy man, but remarked that Mikelsons had declared all his incomes.

As already reported, Riga Central District Court yesterday also ordered Latvenergo Vice President Aigars Melko held in custody.

Corruption Prevention Bureau agents on Tuesday detained seven persons altogether in connection with possible offenses on the part of Latvenergo officials – five executives and two other individuals. The five Latvenergo executives include the company's president Karlis Mikelsons, Melko, Sadales tikls board chairman Ivars Liuziniks and his deputy Andrejs Stalazs, as well as Sadales tikls technical director for the eastern region, Edgars Vitkovskis, as the Corruption Prevention Bureau's spokesman Andris Vitenburgs told LETA.

Sources informed LETA that also arrested were Buvenergoserviss Ltd. sole owner and CEO Mihails Paladijs, and the company's former board member Andrejs Livanovics.

Andrejs Livanovics denies the charges against him.

His attorney told LETA today that he is considered a suspect in aiding and abetting use of official position in bad faith in connection with the second round of the reconstruction of the Riga 2nd Cogeneration Plant.

Livanovics, Mikelsons and Melko are business partners, and have mutual real estate property.