KNAB flags misuse risks in Latvian MPs’ compensation system

Latvia’s Corruption Prevention and Combating Bureau, KNAB, has identified risks that members of parliament could improperly receive and use public funds through the Saeima’s compensation system, LSM reported.

KNAB has urged the Saeima, Latvia’s parliament, to regularly review the criteria and amounts used to award compensation and strengthen internal controls. These controls should assess whether MPs’ actual expenses are economically justified, proportionate and consistent with the purpose of the compensation.

The bureau reviewed transport and housing rental compensation received by members of the 14th Saeima between 2022 and 2026. A total of 139 people served as members of parliament during that period. Of them, 52.5 percent applied for and received compensation.

Over the four-year period, 73 MPs received a combined 1.1 million euros in compensation.

KNAB said the main risks identified in its assessment were linked to rules that could allow the system to be used dishonestly. These included situations in which an MP changes their declared place of residence after being elected, already has access in or near Riga to accommodation they own or use, pays disproportionately high rent, or reports higher fuel consumption than would reasonably be expected based on the possible mileage of the vehicle.

Ineta Cīrule, acting head of KNAB, said that the standard for assessing a public official’s conduct cannot be limited to whether an action is permitted by law.

“Compliance with the law is the foundation we expect from public officials, but an official’s responsibility does not end there. When public funds are used, ethics, integrity and the principles of good governance are equally important. If regulations allow a situation in which there is formally a right to receive compensation but no objective need for it exists, an MP must be guided by the principles of ethics, integrity and good governance,” Cīrule said.