KNAB opposes 3 million euro threshold for criminal liability for cartels in procurement
Latvia's Corruption Prevention and Combating Bureau (KNAB) has sent a letter to the Saeima Legal Committee objecting to the 3 million euro threshold for criminal liability for prohibited agreements in procurement, arguing it would severely limit the practical application of the new norm.
The threshold, supported by the Saeima in the second reading, was proposed by MP Gunārs Kūtris (Union of Greens and Farmers). Previously, the New Unity party had suggested a 100,000 euro threshold. Kūtris' proposal was backed by a majority, with only the Progressives voting against and most New Unity deputies abstaining.
KNAB states that in Latvia's procurement market, significant violations often arise from repeated or split procurements rather than a single high-value contract. The current approach risks artificial division of large procurements to avoid liability. Regional infrastructure, construction, and service procurements that directly affect public spending would fall outside the scope.
The bureau advocates for a differentiated approach: 1 million euros for construction works and 750,000 euros for services and supplies. If a single threshold is necessary, KNAB recommends 1 million euros, which would be more balanced and aligned with planned amendments to the Public Procurement Law taking effect in 2028.
KNAB believes a uniform high threshold would unjustly exclude violations in services and supplies, while a differentiated approach reflects the economic significance of different procurements.
It is recalled that the Saeima in early June supported the New Unity's proposed amendments to the Criminal Law, introducing criminal liability for individuals for participating in cartels in procurement procedures.
