KNAB urges overhaul of Latvian MPs’ compensation system

Latvia’s Corruption Prevention and Combating Bureau has identified risks of dishonest use in the compensation system for Saeima members, prompting calls for independent oversight of parliamentary spending, LSM reported.

KNAB’s review of compensation paid to members of the 14th Saeima recommended that parliament regularly reassess the criteria and amounts for compensation. It also called for stronger internal controls to evaluate whether MPs’ actual expenses are economically justified, proportionate and consistent with the purpose of the compensation.

Saeima Speaker Daiga Mieriņa of the Union of Greens and Farmers agreed that both the amount of compensation and the distance from which it becomes available should be reviewed.

She said the KNAB findings also created an opportunity to reopen discussion about transparency in the work of parliament and oversight of its spending. This includes deciding whether the State Audit Office should be given the authority to audit parliamentary expenses.

Mieriņa acknowledged that previous efforts to strengthen controls over Saeima spending had faced strong opposition from MPs. She said it might still be possible for the current parliament to act if there were sufficient political will, although little time remained.

Political scientist Romāns Gagunovs said the KNAB review clearly demonstrated that the compensation system needed to be reconsidered. In his view, the current system not only creates risks of dishonest conduct but also requires Saeima employees to spend time checking receipts and processing payments.

Gagunovs said the compensation system had long caused public dissatisfaction and that the existing approach had exhausted its usefulness.