Three people charged in Latvian hospital procurement cases worth €7 million

Three people have been charged in one of a series of cases over suspected rigged purchases of medical equipment at Latvian hospitals, a prosecutor said on Thursday. Gatis Doniks of the European Public Prosecutor’s Office (EPPO) told a news conference at KNAB, Latvia’s anti-corruption bureau, that two of the seven cases had now been sent for prosecution, LSM, the Latvian public broadcaster, reported.

The seven criminal cases, opened by KNAB and the EPPO over the past two years, concern alleged illegal arrangements between staff at state and municipal hospitals and medical supply companies to help them win tenders. Together they cover eight procurements worth about €7 million.

The charges

Doniks said the charges were for economic crimes and offences in public service, namely fraud and misuse of official position, the LETA news agency reported. He did not name the accused or give further details before the cases reach court, and would not say when that might be. Everyone is presumed innocent until convicted by a court.

Doniks said the number of people charged would certainly rise. The EPPO could merge several cases, which would allow several hospital officials and company employees to be charged in a single case. KNAB may hand over the remaining cases in January.

Seven hospitals, one supplier

Ineta Cīrule, the acting head of KNAB, said 14 people had the right to a defence, five of them state officials. Two investigations were completed in the past two weeks, into procurements at Ogre district hospital and at Pauls Stradiņš Clinical University Hospital in Riga. KNAB has information that an outside expert brought in for the Stradiņš tender may have requested and accepted an illegal benefit of more than €6,000.

The procurements under investigation were run by the Hospital of Traumatology and Orthopaedics (TOS), Stradiņš hospital, Vidzeme hospital, Ogre district hospital, Liepāja Regional Hospital, Bauska hospital and Jelgava city hospital. Six of the seven cases involve the same Latvian-registered trader and supplier of medical goods, which was not named at the news conference.

Ministry: zero tolerance

Agnese Vaļuliene, state secretary of the Ministry of Health, said the ministry had zero tolerance for corruption. “Cases like these affect public trust in the health system and in the thousands of staff who work honestly,” she said. The ministry has proposed centralising procurement and is setting up a joint platform with professional associations, patients and KNAB, with a first meeting planned for January.

KNAB also reviewed hospitals’ anti-corruption plans. Of 39 hospitals asked, 32 replied, and most plans were found to be a formality. The weakest points, the bureau said, were procurement and whistleblowing.