Former VDAA director Liopa released from custody on bail

The former director of Latvia's State Digital Development Agency (VDAA), who had been held in pre-trial detention in a fraud case linked to IT procurement, was released last week after posting €30,000 in bail.

The case stems from a criminal investigation opened in March by the State Police together with the European Public Prosecutor's Office (EPPO), under which 21 people were detained, including several state officials. They are suspected of fraud worth roughly €1.5 million in public IT procurement contracts.

Detention measures shifted over time

Detention was initially imposed as a security measure on three individuals: public procurement specialist Ainars Bīders, businessman Aigars Cerus, and Liopa. Bīders and Cerus were released from custody earlier, while Liopa remained under this stricter measure for a longer period.

Nature of the allegations

The criminal proceedings were launched at the end of last year and are classified under Criminal Law articles covering large-scale fraud committed by an organized group, as well as large-scale laundering of criminally obtained funds. Investigators believe an organized group secretly agreed in advance on the winners of at least six public procurement tenders funded by the European Regional Development Fund, with a combined value of up to €1.5 million.

There are suspicions that state officials unlawfully helped secure these contracts, after which the illicit profits were divided among those involved. EPPO has noted that the implementation of some of the affected projects could also pose risks to national security, as they may be linked to attempts to influence elections and democratic processes.