Latvian state institutions and companies spent €63 million on IT procurements through competitive tenders last year, while an additional €130 million was spent with companies through the Electronic Procurement System without competition. A number of contracts entered into by state-owned companies are not made public since they fall outside the scope of Public Procurement Law, according to a report by TV3’s “Nekā personīga.”
IT Procurement Concerns and a Resignation
The report highlights potential conflicts of interest, noting that until last month, the wife of entrepreneur Aigars Ceruss – who is involved in an IT procurement scandal – held a leadership position in one of these companies. Recent weeks have seen significant changes at “Latvijas autoceļu uzturētājs” (Latvian Road Maintenance), a company owned by the Ministry of Transport, including a name change to “LAU Infra grupa” and the forced resignation of a board member.
Ilze Bukulde, the former board member, was selected for her position three years ago following a process run by the company’s council. At the time, she also served on the board of “Rīgas nami,” a municipal company in the capital city, and continues to do so. Her husband is Aigars Ceruss, the owner of companies within the “Corporate Solutions” group, which has been implicated in the IT procurement scandal.
In late March, the council of “LAU Infra grupa” announced the termination of Bukulde’s contract. She was responsible for financial management, the company’s real estate, and IT development. The company has invested significant funds in upgrading its IT systems in recent years, but these procurements are not publicly available, as the company now operates in a free market and competes with other firms for contracts.
Following a request from “Nekā personīga,” the road maintenance company provided data on IT contracts signed in the past two years. More than half of this total – €1,093,954.02 – was awarded to “Elva Baltic,” initially for diagnostics and analysis costing €8,000, and later for the creation of a recent resource management system and necessary licenses.
Approximately ten additional contracts were for amounts just below the public procurement threshold. The state-owned company asserts that none of the firms contracted in recent years are connected to the board member’s husband. The company’s council has declined to disclose whether Bukulde will receive compensation, citing commercial confidentiality.
Frequently Asked Questions
What amount of money was spent on IT procurements through competitive tenders last year?
State institutions and companies spent €63 million on IT procurements through competitive tenders last year.
What is the relationship between Ilze Bukulde and Aigars Ceruss?
Ilze Bukulde is the wife of Aigars Ceruss, who owns companies within the “Corporate Solutions” group and is involved in an IT procurement scandal.
How much money was spent on IT contracts with “Elva Baltic” in the last two years?
Over half of the nearly €2 million (excluding VAT) spent on IT contracts in the last two years was awarded to “Elva Baltic,” totaling €1,093,954.02.
Will increased scrutiny of these types of contracts lead to greater transparency in Latvia’s public procurement processes?
