On March 5, the Corruption Prevention and Combating Bureau of Latvia (KNAB) in cooperation with the European Public Prosecutor's Office (EPPO) carried out criminal procedural actions, including searches, at several sites in Valka and elsewhere in Latvia.

On 6 November 2023, EPPO initiated criminal proceedings and transferred the proceedings to KNAB, being the competent authority to carry out the pre-trial investigation. In the criminal proceedings, KNAB is investigating criminal offences classified according to Section 177, Paragraph three and Section 318, Paragraph two of the Criminal Law, i.e. fraud committed on a large scale and abuse of official position for the purpose of acquiring property.

KNAB suspects that several former and current officials of the Valka Municipality Local Government, possibly using their official position in bad faith for purposes of acquiring property, together with a representative of a company, carried out illegal activities in connection with two projects implemented by the local government. The aim of the criminal activities was to illegally obtain a total of at least 2 million euros for European Regional Development Fund funding for projects. Both projects relate to the infrastructure of the site of the industrial building.

Four persons involved in the criminal proceedings currently have the right to defence. Security measures have not been applied to any person in these criminal proceedings.

KNAB currently continues the pre-trial investigation and establishing of the evidence obtained. In order to ensure a successful pre-trial investigation of the alleged criminal offences, KNAB is currently unable to provide further information on the criminal proceedings and the persons involved.

KNAB draws attention to the fact that persons involved in criminal proceedings have the right to defence and reminds that the presumption of innocence is applied at all stages of criminal proceedings — from the moment a person is suspected or accused until the moment his or her guilt of committing a criminal offence is established in accordance with the procedures laid down by law.