Foreign media notices criminally accused mayor Lembergs' corruption and inaction of Latvian institutions

For years Latvian government and institutes of power have failed to push Aivars Lembergs, who is accused of committing serious crimes, from ranks of power circles. Although he is accused of corruption and arranging approval of officials’ positions and Latvia’s Environment Protection and Regional Development Minister Juris Pūce and Corruption Prevention and Combating Bureau (KNAB), as well as other institutions are informed of this, they do not seem all that worried about it. The problems that have remained unresolved for years have been noticed by foreign media, which have started reporting on the corruptive schemes and the inaction of Latvian institutions towards Lembergs even after sanctions imposed by USA.

For years Latvia has had a questionable reputation not just because it was one of the «money laundering superpowers» in Europe but also because of the country’s failure to tackle the stagnant network of corruption. Now these problems are considered very serious. But ghosts of the past are relentless, as Swiss media Neue Zürich Zeitung (NZZ) writes about Latvia and especially Ventspils.

The media reminds that on 9 December 2019 there was a big ‘bang’: the US Department of the Treasury’s Office for Foreign Asset Control (OFAC) imposed sanctions against Aivars Lembergs in accordance with the so-called Magnitsky Law. The statement released to mass media by OFAC mentions that Lembergs is an oligarch, Lembergs is repeatedly accused of money laundering, bribery and abuse of power. Lembergs controls entities through political parties and corrupt politicians, and systematically exploits those entities and individuals for his own economic gain.  Lembergs has used his influence over leadership of political parties to shape government personnel and place certain government officials in positions, as well as to obstruct other government officials from obtaining leadership positions, OFAC writes.

According to OFAC, Lembergs has used his influence over leadership of political parties to shape government personnel and place certain government officials in positions, as well as to obstruct other government officials from obtaining leadership positions.  Additionally, Lembergs has leveraged and corrupted law enforcement officials to protect his interests and subvert politicians whom he otherwise was unable to control.

Aside from Lembergs, USA imposed sanctions against four legal persons controlled by Lembergs at the time. These included Ventspils Freeport authority, Ventspils Development Agency, Business Development Association and Latvian Transit Business Office. Warnings were noticed as far away from Ventspils as Riga, because the port and transport sector associated with it are an important pillar of state economy, the media continues.

Latvian banks, which have performed considerable and relatively successful operations in the past three years to get rid of ‘money laundering superpower’ image, immediately ceased business relations with aforementioned person following the sanctions. Banks did not want sanctions to extend to them, which would have put at risk their operations, NZZ reports. ‘But without money, the port, which is the most important economic player in Ventspils, is unable to function.’

The main consequence for sanctions was that the wide spider that was created by the feudal master in three decades was finally revealed, NZZ writes. The foreign media also notes that for a long time Lembergs has not been mayor of Ventspils; he has been officially suspended since the beginning of the corruption case against him.

The foreign media contacted Ventspils City Council opposition deputy Dace Korna for a comment. She told the media Lembergs continues doing what he wants. «Environment Protection and Regional Development Ministry and Corruption Prevention and Combating Bureau (KNAB) continue observing the situation, explaining their inaction with lack of jurisdiction or competence,» comments Korna.

According to Jānis Vītoliņš, everything is ‘only partially bad’, the media writes. The vice-mayor of Ventspils explained to guests of the city in a friendly voice that there are certain restrictions that apply to Lembergsm NZZ notes. He is no longer allowed to lead city council meetings, signs specific contracts and receive wages. The only serious mistake, according to Vītoliņš, is that the port, which was previously jointly managed by Ventspils city and the government, is now managed solely by the state, NZZ recites what Vītoliņš said.

«According to Vītoliņš, the ‘previous model’ definitely worked just fine. As Captain Lembergs’ crew member, Vītoliņš is in the same boat as him,» the media writes. According to NZZ, Lembergs had secured 60% of votes in the last municipal elections by «sharing» money and making the provincial city more pleasant to the eye.

However, Ventspils is a divided city. On the other side of the river, the port’s side, which has been taken from the mayor’s bandit crew since the sanctions, differently-minded people feel as though they live in North Korea, says opposition representative Dace Korna. But there will be no surrender, NZZ explains opposition deputies’ position.

Cautious optimism

Can Latvia defeat this Hydra? NZZ’s question is addressed towards Society for Openness Delna director Liene Gatere. Unfortunately, the politologist says Latvia still needs to rely on foreign aid to hand the red card to corrupt officials. This happened with US sanctions against Lembergs. The problem is that residents may consider it as outside interference, the Swiss media writes.

Gatere mentioned two trends in Latvia’s political reality. Both seem controversial at first glance. On one hand there are successfully formed structures like pluralistic political system, law enforcement institutions and judicial power. It is important that multiple institutions have received new and reliable heads in the past couple of months. Now it is necessary to talk about political figures being put in state administration. There is progress, but it is slow. On the other hand, there is still no clarity about multiple major fishes, NZZ reports what Gatere said.

In the end, according to what Gatere told the media, lately there has been clearer political desire. There have always been announcement about good intentions, but since the change of power more than a year ago there was commitment to implement them, she says. Improvement of the situation is further improved by the fact that for a long time there has not been a party in the government under Lembergs’ control.

Gatere is also cautiously positive about changes in society. There is a new generation of Latvians who have studied abroad and now demand greater political responsibility and transparency. The pressure, however, is not enough, and currently it is limited to the region around Riga, the media was told by the politologist.