Audit findings prompt sweeping reform of Latvia’s Society Integration Foundation

An audit has identified conflicts of interest, governance weaknesses and a loss of public trust at Latvia’s Society Integration Foundation, prompting proposals for a major reform, LSM reports. The Culture Ministry has put forward four possible scenarios, including closing the foundation and distributing its functions among ministries.

The foundation implements social cohesion policy and distributes financial support to different groups and organisations. Its work includes strengthening non-governmental organisations and civic participation, supporting regional media and producing socially significant media content. It also runs programmes for families, supports refugees, works on diaspora and return migration issues, and conducts research and collects data.

The audit found that the foundation increasingly acts both as a funding administrator and as an implementer of policies and projects. This creates risks of conflicts of interest and roles, as well as unfair competition, because the same institution administers funding, assesses projects, monitors spending and takes part in project delivery.

The Culture Ministry also said political influence is evident in the foundation’s board, where ministers decide on programme rules, evaluation criteria and competition results. The ministry is proposing to depoliticise the foundation’s governance.

The foundation’s budget exceeds 32 million euros this year, more than twice its 2020 level. About 70% of this year’s funding comes from European Union financial instruments. The audit was conducted following a Cabinet assignment that came after public and political debate, including calls by some political forces to close the foundation.