WATCH ⟩ KNAB has started an investigation into municipal electric bus procurements
The Corruption Prevention and Combating Bureau (KNAB) has initiated an investigation into municipal electric bus procurements worth 8.8 million euros, funded by the European recovery fund, amid concerns over favoritism towards two Latvia-based companies.
The Corruption Prevention and Combating Bureau (KNAB) has officially launched a forensic investigation following a report from the State Audit Office regarding the procurement of electric buses by municipalities in Latvia, totaling 8.8 million euros. This funding is sourced from the European recovery fund, indicating the significance of compliance with transparency standards in utilizing such funds. Concerns have been raised about possible favoritism towards two companies—potentially undermining fair competition and the integrity of the procurement process.
Sources from Latvijas Televīzija's program "de facto" suggest that the company "Electrify" may have been involved in assisting the South Kurzeme municipality in preparing the technical specification for its procurement process. This raises questions about the impartiality of the process. Moreover, in the Jelgava district’s procurement for "Eco Bus," the involvement of a specification author who previously worked with the winning firm's manager has been highlighted, suggesting possible conflicts of interest that could compromise procurement validity.
In more practical terms, the municipal electric buses were delivered in 2024 for student transportation in the South Kurzeme region, each costing around 312 thousand euros, with a substantial portion covered by the European fund. Nevertheless, concerns about the performance of these buses have been noted, with local bus driver Arturs Kuzmins mentioning difficulties in heating the bus cabin on cold winter mornings, indicating potential issues with the buses’ functionality despite their state funding and intended green purposes.