Latvia's anti-corruption bureau fines former state railway board head over LMT position

Latvia's Corruption Prevention and Combating Bureau (KNAB) has fined the former interim board chairman of the state-owned European Railway Lines company (EDzL) for holding a public office while simultaneously working in a prohibited position at a private company.

The individual served as EDzL's interim board chairman from May 27, 2025, until February 26 of this year. Throughout that period, he also held the position of deputy chairman of the supervisory council at SIA "Latvijas Mobilais Telefons" (LMT), a post he had occupied since November 2023. According to KNAB's decision, combining these roles and earning income from the private position violated conflict-of-interest rules, resulting in a €200 fine.

Multiple income sources

According to his 2025 state official's income declaration, the individual received a salary of €45,628 from EDzL last year. He also earned €40,397 from the Baltic joint venture AS "RB Rail," and €36,000 from his position on LMT's supervisory council.

Before taking the EDzL interim leadership role, he headed EDzL's Security and Business Continuity Department. Since 2018, he had also served as head of the Security Department at "RB Rail," the Transport Ministry previously reported.

Company background

EDzL is a fully state-owned company with registered capital of €4.445 million. LMT's group revenue last year reached €333.777 million, up 8.9% from 2024, though group profit fell 1.6% to €33.409 million. LMT itself posted revenue of €196.918 million, an 8.3% increase year-on-year, while its profit slipped 0.1% to €31.608 million.

Ownership of LMT is split among several parties: Sweden's Telia Company and its subsidiary jointly hold 49%, SIA "Tet" and the state-owned Latvian State Radio and Television Centre each hold 23%, and "Possessor" holds the remaining 5%. Telia has recently signed a memorandum of understanding to sell its stakes in Tet and LMT to the Latvian state and a strategic investor.