Former Rēzekne mayor to stand trial over spa project

Former Rēzekne mayor Aleksandrs Bartaševičs of the Together for Latvia party will stand trial for exceeding his official powers by making a unilateral decision on the construction of a spa centre, LSM reported. Prosecutors say the decision caused serious consequences and endangered the municipality’s interests.

On August 31, a prosecutor from the Prosecution Office for the Investigation of Criminal Offences in State Institutions’ Service referred the criminal case to the Latgale District Court.

The case concerns the Rēzekne Recreation Centre project, intended to support tourism development. According to the investigation, the official unilaterally assumed new long-term financial obligations on behalf of the municipality, failed to follow the legally required procedures and acted in a conflict-of-interest situation.

The initial construction contract was worth more than 7 million euros, excluding value-added tax. The project’s funding had been approved by the municipal council and set out in an agreement with the Central Finance and Contracting Agency.

After the initial construction contract was terminated early, the value of the remaining works was just under 4.9 million euros. Prosecutors say the official knew that external circumstances meant the project could not be completed within the approved budget. At least 10 auctions for the lease of the recreation centre had also attracted no private operators, even though securing an operator was one of the project’s mandatory objectives.

Despite this, the official allegedly took no steps to allow the municipal council to assess whether the project should continue, whether it was economically justified or whether the municipality could assume new long-term financial obligations at higher costs.

Only one bidder submitted an offer in the procurement process. Its proposed contract price exceeded 8 million euros, making it more than 3 million euros higher than the value of the remaining works under the previous contract. It also exceeded the project funding approved by the municipal council and specified in the agreement with the Central Finance and Contracting Agency.

In September 2022, the official allegedly signed the contract without a municipal council decision and without an assessment or approval from the municipality’s Finance Administration, thereby unilaterally assuming long-term obligations of more than 8 million euros on behalf of the municipality.