Former digital agency chief freed in IT procurement case

LSM reports that Jorens Liopa, the former director of Latvia’s State Digital Development Agency, was released from detention last week after posting 30,000 euros in bail.

Liopa is one of the suspects in a case opened by the European Public Prosecutor’s Office over alleged fraud in information technology procurements worth more than 1.5 million euros.

The State Police confirmed to Latvian Television that all three people previously held in custody in the criminal investigation are now free. Their detention was replaced with non-custodial security measures.

Aigars Ceruss, owner and head of the Corporate Solutions group of companies, was released from detention in the spring. Public procurement specialist Ainars Biders was released in the summer.

The investigation concerns allegations that members of an organised group agreed to ensure that project assignments went to companies selected in advance, after which the illegally obtained profits were divided among the participants.

The Corruption Prevention and Combating Bureau has also opened criminal proceedings over the disclosure of restricted information related to the IT procurements. The case involves Edvins Balsevics, state secretary at the Ministry of Smart Administration and Regional Development, who was suspended from his post.

The State Digital Development Agency later terminated contracts with several service providers. Prime Minister Andris Kulbergs of the United List imposed a 30-day moratorium on large and costly information and communications technology procurements on June 15 to review their usefulness and procedures. The restrictions were later extended until August 16.