Corruption, Latvia, Legislation, Real Estate

Karlis Kavacs.

As reported, on September 11, Riga Vice Mayor Andris Ameriks (Honor To Serve Riga) suspended the board of Rigas nami over high-risk financial deals that may have caused losses of about LVL 600,000 for the Riga City Council, writes LETA.

The Riga City Council carried out an audit at the company. After receiving the audit's results, the new board at Rigas nami turned to the State Police's Economic Crimes Department, informing about the established violations in the company's financial transactions.

The State Police has launched a criminal process. Today, several searches were carried out, detaining those suspected of committing criminal offenses, including Kavacs.

Ameriks previously informed that Rigas nami board members made such deals as they wanted the company to generate larger profit. However, Ameriks was concerned that the board members may have overstepped their authority in doing so.

Rigas nami was part of high-risk transactions involving the company's uncommitted assets. The highly-complicated transactions involved currency conversion, explained Ameriks. In these transactions, Rigas nami cooperated with the company Zeus, whose share capital is a mere LVL 2,000.