On 14 October 2008 the Corruption Prevention and Combating Bureau (KNAB) has sent to the Prosecutor General Office materials of criminal proceedings initiated about bribery in the Riga City Council, suggesting holding criminally liable three officials of the Riga City Development Department and four private persons.
In the course of the investigation sufficient evidence was gathered about four cases when in the period of time from 2005 to February 2008 two officials of the Riga City Council, by using a third official of the Riga City Council as intermediary, asked money – bribes – from several developers of real estate projects for taking advantageous decisions in connection with building plans in Riga.
The materials of criminal proceedings show that in 2005 officials of Riga City Development Department have found out that a landowner intends to build a considerably higher and spacious building than it was allowed and asked a bribe in the amount of 1 000 000 EUR in order to change the status of use of the respective pieces of land situated in Riga, Rusova Street. The evidence collected allows to suppose that, by using intermediation of a third official of the Riga City Council, a part of the bribe, not less than 236 000 EUR, has been received in cash.
In the course of pre-trial investigation it was found out that in another episode in 2007 officials of the Riga City Development Department, by agreeing with other officials of the city council, demanded from a person representing interests of an enterprise and with help of an intermediary in parts received a bribe in the amount of 60 000 EUR for taking of an advantageous decision in relation to a project of building a complex of apartment buildings in Riga, Kuldīgas Street. Materials of the criminal proceedings confirm that the bribe was given to officials of the Riga City Council so far not known to the investigation, but who were related to decisions taken about the relevant enterprise and project.
Meanwhile, in the end of 2007, in addition to the initially agreed bribe, by using an intermediary, additional 40 000 EUR were demanded from the businessman and part of it – 20 000 EUR – were received. Officials of the Riga City Development Department did not receive the remaining part of the bribe, since they were arrested.
In the third case, also in 2007, officials of the Riga City Development Department, by agreeing with other officials of the city council, demanded from a businessman illegal remuneration in the amount of not less than 60 000 EUR for taking an advantageous decision in relation to building permits necessary for successful development of apartment building complex in Riga, Dzirciema Street. Also in this case intermediary was used to receive and pass the bribe. KNAB has found out that the demanded bribe was increased over time to 80 000 EUR. Part of it – 20 000 EUR – was given in 2007, then 45 000 EUR in 2008. Due to arrest of the intermediary soon after receipt of the bribe, it was not possible to provide the bribe to relevant officials.
In the fourth case in 2007 an official of the Riga City Development Department with an intermediary demanded from representative of an enterprise illegal remuneration in the amount of 30 000 EUR for taking a decision in the Riga City Council and its institution in advantage of a project developer in relation to a project of developing an apartment building complex in Riga, Dzelzavas street. Nevertheless, the due amount was not paid to the intermediary.
Considering that sufficient evidence was collected during the pre-trial investigation, the investigator of KNAB suggests starting criminal prosecution against three suspects for intermediation in bribery and against two from them also for accepting bribes. Meanwhile, against four persons it is suggested to start criminal prosecution for giving of bribes. To all suspects safety measures not related to the deprivation of liberty are applied, including to officials of Riga City Council a prohibition to hold positions in Riga City Council and its structural units is applied.