Before deciding whether to initiate criminal proceedings, the police will ask the Riga City Council to issue the company Ernst & Young auditors' report on Traffic of Riga.
State Police representative Raitis Kalnačs admitted in the broadcast that in the near future the police would probably start a criminal case. "These conditions are unlikely to be clarified by a rescue check. [..] At the moment, we are only at the initial stage, so no extensive comment could be made yet, "said Kalnačs.
Police Traffic from Riga began evaluating consulting contracts after receiving information from KNAB. His boss, Jacob Straume, said on Monday that the firm had suspected more than 10 of the company's consultants.
KNAB chief Jacob Straume said it was established that there is reasonable suspicion that criminal offenses were committed under those treaties. "It's up to the police to investigate further, since it's a false job, fraud or document fraud," Straume said.
Traffic from Riga and counselors have so far denied the violations and emphasize that the company's consultants have fulfilled their obligations.
It has been reported that evaluating audit firms Ernst & Young prepared Traffic from Riga KNAB found that the information contained in the commercial inspection report was evidence of possible employee fraud, as the company's agreements with several consultants were likely to be fictional.
In accordance with the institutional jurisdiction established by the Criminal Procedure Act, KNAB transmitted information on these facts to the State Police for further investigations.
Meanwhile, the State Police has begun to evaluate this information, the LETA agency told police.
Likewise, it is reported that KNAB has initiated criminal proceedings against three Traffic from Riga Acquisition – for the purchase of low floor trams in 2016, the total amount of which was 62,597,477 euros, the purchase of trolleybus in 2013, the total amount of which was 131,646,135 euros, as well as the acquisition of buses in 2013, which the total amount was EUR 75 808 297.
There are seven suspects in the case – long-term parties Glory to serve Riga member, businessman Aleksandrs Krjačeks, Traffic from Riga Igor Volkinstein, director of the Department of Infrastructure Maintenance and Development, Traffic from Riga Chairman of the Board of Directors Leons Bemhens, a Czech company Škoda Transportation Vladislav Kozak, businessman Maris Martinsons, businessman Edgar Teterovsky and his wife.