During a discussion organized by the National Audit Office regarding the state's approach to combating the shadow economy, Professor Arnis Sauka from the Stockholm School of Economics in Riga expressed his dismay over the recent decision to cancel the requirement for individuals to indicate the source of financing for construction projects. He emphasized that this decision is not motivated by a desire to reduce bureaucracy but is rather a step backward in ensuring transparency in the construction process. Sauka was surprised and puzzled about why such a decision was implemented, questioning the rationale behind it.

The decision was made by a majority of Saeima deputies at the end of last year, who approved amendments to the Construction Law prepared by the Greens and Farmers Union. These amendments state that individuals submitting a request to start construction will no longer need to disclose the source of funding for their projects. This move has received support from 57 deputies, including those from the Greens and Farmers Union, the party 'Latvia First,' 'United List,' and 'Stability.' The implications of this decision could lead to increased risks of corruption and less accountability in construction financing, further complicating efforts to address the shadow economy in Latvia.

As discussions continue on the potential consequences of this legislative change, there could be calls for reevaluating the decision to ensure that the fight against shadow economic practices remains a priority. The lack of transparency in financing could undermine public trust in the construction sector and limit the state's ability to effectively monitor and regulate construction activities.