Corruption Prevention and Combating Bureau (KNAB) has forwarded to prosecutor's office materials of criminal proceedings initiated on 25 November 2004 asking to start criminal prosecution against chairman of Kolka parish (Talsu region) for unlawful activities with respect to the real estate of the municipality. Criminal proceedings were started on the basis of information received from the Ministry of Regional Development and Local Government.
In the course of pre-trial investigation it was detected that official of Kolka parish has repeatedly used official position in bad faith and participated in unauthorized property transactions concluding agreements in personal interest of relatives. In 2003 chairmen of Kolka parish decided to change the amount of fixed capital in the company SIA "Kolkas rags" founded by the municipality. These activities resulted in municipality having lost control over the company and the real estate contributed by the municipality and caused damage in the amount of 84 500 lats.
Official of Kolka parish is considered a suspect in having committed criminal offences under The Criminal Law of Latvia, Section 317 § 2 (Exceeding Official Authority) and Section 326 § 2 (Unlawful Participation in Property Transactions).