Riga, Latvia – Latvian police have detained 21 individuals, including several high-ranking state officials, on suspicion of large-scale fraud involving European Union funding. The investigation centers on alleged manipulation of IT procurement contracts related to at least six projects financed by the European Regional Development Fund (ERDF), with a total value exceeding €1.5 million, according to authorities.
The coordinated operation, which took place on March 22, 2026, involved 67 searches of businesses and private residences in and around the capital city of Riga. Police have secured substantial evidence pointing to a clandestine agreement among the suspects to improperly influence the awarding of public contracts. Allegations suggest that profits were inappropriately shared amongst those involved, and that state officials may have assisted in securing contracts unlawfully, as reported by Latvia’s public broadcaster LSM.
Among those arrested is Jorens Liopa, the former director of the State Digital Development Agency. Liopa was previously downgraded due to infractions related to information technology processes during municipal elections. He currently holds the position of deputy director of the Nature Conservation Department at the Nature Conservation Agency, but has been suspended following his arrest. The European Public Prosecutor’s Office (EPPO) is overseeing the criminal proceedings.
Details of the Alleged Fraud
The investigation focuses on a scheme to influence the outcomes of public procurement contracts for projects funded by the ERDF. Authorities believe the individuals involved colluded to steer contracts towards preferred companies, potentially receiving illicit profits in return. The EPPO is investigating whether these actions constitute a systemic effort to defraud the EU of funds intended for regional development.
This isn’t the first instance of EU funding fraud in Latvia to come under scrutiny recently. On March 20, 2026, the EPPO secured a conviction at the Riga City Court in a separate case involving procurement fraud related to EU agricultural funds. The case involved a project to reclaim agricultural land and reconstruct an amelioration system, funded by the European Agricultural Fund for Rural Development (EAFRD) and managed by the Latvian Rural Support Service, resulting in damages of €95,803.67, according to the European Public Prosecutor’s Office.
Investigators found that the project beneficiary colluded with another operator to manipulate the procurement process, ensuring a pre-selected company won the contract. However, the beneficiary then carried out the function using its own resources, violating procurement regulations. Both individuals were found guilty of large-scale fraud.
EPPO’s Expanding Role in Latvia
The EPPO, established to protect the EU’s financial interests, has been increasingly active in Latvia. The recent conviction in the agricultural fraud case demonstrates the office’s commitment to pursuing such investigations. The EPPO’s involvement in both cases highlights a growing concern over the potential misuse of EU funds within the country. The office is responsible for investigating, prosecuting, and bringing to judgment crimes against the financial interests of the European Union.
The European Union provides significant financial support to Latvia, including funds for state police strengthening, as noted by ES fondi. These recent cases raise questions about the effectiveness of oversight mechanisms and the potential for corruption within the system.
The Latvian Police have not released the names of the other individuals detained, citing ongoing investigation protocols. Further details regarding the specific projects affected and the extent of the alleged fraud are expected to emerge as the EPPO’s investigation progresses.
As the investigation unfolds, authorities will likely focus on tracing the flow of funds and identifying any additional individuals involved in the alleged scheme. The outcome of these proceedings could have significant implications for Latvia’s access to future EU funding and its reputation for financial transparency. The EPPO’s work in Latvia is ongoing, and further developments are anticipated in the coming weeks and months.
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