Ogre Mayor Calls State Audit Findings Insignificant, Sees No Political Responsibility

During a press briefing, Ogre Municipality Council Chairman Andris Krauja stated that the violations identified by the State Audit are insignificant. He promised to consider the auditors' recommendations and strengthen internal controls, but disagreed with some conclusions, particularly regarding water management, as it could increase residents' bills by about 25%. Krauja said he would invite the State Audit for discussions to find a legally and economically justified calculation.

The State Audit found that the Ogre Municipality had spent at least €434,000 in non-compliance with regulations. Procurement processes showed signs of fraud risks, which have been reported to law enforcement authorities. The audit highlighted systemic problems in financial management, lack of internal controls, deficiencies in development planning, and procurement procedures. For instance, 41% of infrastructure projects were not implemented, while cultural projects received a fourfold increase in funding.

Procurement lacked transparency and competition, and conflicts of interest were identified – one deputy voted for funding to an association he himself had founded. Oversight of funding to associations was insufficient; for example, €195,000 granted to a basketball club was not recovered as the association was liquidated. Deficiencies were also found in municipal agencies – unlawful use of funds, conflicts of interest in land lease, and irregular remuneration and bonus awards.

Krauja does not believe any official should bear political responsibility. He argued that many criticized projects have benefited residents. The Minister for Smart Administration and Regional Development, Edgars Tavars, has requested a written explanation from the municipality regarding the audit findings. State Audit Board member Oskars Erdmanis emphasized that these deficiencies indicate systemic problems that threaten public trust and responsible use of funds.