KNAB and EPPO Conduct Searches at Bauska and Jelgava Hospitals in Procurement Fraud Probe

Today, the Corruption Prevention and Combating Bureau (KNAB) in cooperation with the European Public Prosecutor's Office (EPPO) conducted procedural actions, including searches, at Bauska Hospital and Jelgava City Hospital. These actions are part of a criminal proceeding initiated by EPPO in the spring of 2026 based on information provided by KNAB. The investigation focuses on alleged large-scale fraud and abuse of office related to two public procurement contracts in Latvian hospitals, totaling €657,000 (€491,500 and €165,500).

According to an EPPO statement, evidence suggests that a businessman allegedly agreed with a hospital procurement committee member before the procurement was announced to influence the procedure and ensure a specific company's victory. The technical specifications and other requirements were allegedly tailored to that bidder's interests, creating an unjustified advantage. This conduct is believed to have harmed the financial interests of both the Latvian state and the European Union.

Kintija Barloti, chairwoman of the board of SIA "Jelgavas pilsētas slimnīca" since July 14, confirmed to LETA that procedural actions were taken at the hospital regarding medical goods procurement but declined further comment. No employee has been suspended, and the hospital continues full operations without disruption to patient services. Similarly, Lāsma Vindule, public relations specialist at SIA "Bauskas slimnīca," confirmed that KNAB officers conducted procedural actions but stated she is prohibited from providing more details; the hospital is cooperating with authorities and continues to provide all services.

Former Jelgava hospital director Rinalds Muciņš commented that the situation should be viewed broadly, noting the specific market with few players where products are often unique, leading to debatable situations. He added that during his tenure he had no suspicions against employees and all procurements were public, though dishonesty cannot be entirely ruled out. Muciņš said that law enforcement had not contacted him.

These searches follow previous actions: on May 21, KNAB conducted procedural actions in three criminal proceedings related to alleged irregularities at Vidzeme Hospital, the Traumatology and Orthopedics Hospital (TOS), and Pauls Stradiņš Clinical University Hospital (PSKUS). The total amount affected in those contracts is at least €3,679,964. KNAB then stated that four persons, including two officials and two company representatives, have the right to defense, and none have been remanded in custody. One of those proceedings involves "Arbor Medical korporācija," whose director Dace Rātfeldere has denied any connection to the cases.