Entrepreneur’s conviction becomes final in Valka EU funds case

A conviction in a case involving the alleged fraud of European Union funds for a cider production facility in Valka has become final, LSM reports, citing the Latvian Television investigative programme De facto.

Businessman Krišjānis Zintis Putniņš, owner of Mūrbūdu cider works, admitted aiding fraud. He reached a penalty agreement, which was approved by the court.

The case concerns construction of a facility worth more than one million euros. The court ruling found that it had been intended from the outset for a specific entrepreneur and that false information was provided to secure more EU funding than the circumstances allowed.

According to the report, information about the people involved in the project was withheld from municipal councillors and the funding supervisor. The supervisor suspected as early as 2022 that the building was being adapted for a particular company. Some letters from other businesses expressing interest in using the facility were fictitious.

Valka will not receive the 700,000 euros it had hoped to obtain from the European Regional Development Fund for the facility. Latvia has implemented 127 projects to regenerate degraded areas.