Saeima supports criminal liability for cartel formation in public procurement
The Latvian parliament has approved amendments that allow for prosecuting individuals involved in forming illegal agreements in public procurement, increasing penalties significantly.
The Latvian parliament, known as the Saeima, has taken a significant step in combating corruption in public procurement by approving legal amendments that impose criminal liability on individuals who engage in or organize illegal agreements, such as fixing prices or coordinating bids. Previously, only legal entities could face administrative penalties for such actions, but the new legislation targets individuals directly, thereby broadening the scope of accountability. It is a response to concerns over transparency and integrity in public spending, particularly in large contracts exceeding 100,000 euros.
The amendments establish stringent penalties for individuals involved in forming prohibited agreements. Depending on the severity of the offense, individuals can face imprisonment for up to three years if the crime is significant, or up to five years if the illegal agreement pertains to public procurement. Additionally, the legislation includes alternative punishments such as probation, community service, or fines, and it allows for supplementary penalties, including temporary bans from holding certain positions or engaging in specific types of business activities. This comprehensive approach aims to deter collusion and promote fair competition in public procurement processes.
These legal changes reflect Latvia's ongoing efforts to enhance regulatory frameworks related to public procurement, ensuring that individuals can be held accountable for corrupt practices that undermine public trust. By focusing on individual liability, the Saeima seeks to create a culture of compliance and integrity, potentially leading to more competitive and transparent procurement processes in the future. The implementation of these amendments will be closely monitored as part of broader anti-corruption initiatives within the country.