KNAB seeks charges against airBaltic official over inflated parts sale

Latvia’s Corruption Prevention and Combating Bureau (KNAB) has asked prosecutors to charge an airBaltic official with abuse of office for personal gain, large-scale fraud and laundering criminal proceeds, LSM reported.

KNAB said its investigation found that the official arranged the sale of airBaltic spare parts at a markup of more than 55,000 euros, generating what the bureau considers unjustified profit for a company linked to the official.

The official, responsible for the circulation of aviation spare parts at the airline, allegedly arranged the transactions with help from another individual and through three companies. KNAB said the official knew a Lithuanian company wanted to buy an airBaltic-owned chassis shock absorber and its strut. One company first bought the parts from airBaltic; a company owned by the official then acquired them and resold them to the Lithuanian buyer for 370,000 US dollars.

The final sale price included a markup of 55,360 euros, which KNAB says generated unjustified profit for the official’s company. Investigators also found evidence that some of the money was transferred to an intermediary company and to private bank accounts belonging to the official and another individual, in the form of dividends. KNAB said the transfers concealed the money’s criminal origin and gave it the appearance of being legitimate. The funds were later used to pay for studies and build a house, according to the bureau.

AirBaltic public and political relations director Augusts Zilberts told the LETA news agency that the suspect is neither a current nor a former member of the airline’s board or supervisory board. KNAB confirmed that the suspect remains a state official at airBaltic. The other individual is suspected of assisting with the alleged abuse of office, fraud and money laundering.