Prosecutor's Office Demands Cancellation of Government Decisions on Wood Industry Support; Case May Reach Constitutional Court

After months of investigation, the prosecutor's office concluded that the Cabinet of Ministers acted unlawfully by ordering AS "Latvijas valsts meži" (LVM) to change the wood pricing procedure. The Prosecutor General's Office has sent a protest to the government, demanding the revocation of these decisions.

The prosecution claims the support was granted based on false information, causing significant losses to the state, though the exact amount was not disclosed. If the Cabinet accepts the protest, companies will have to repay the price difference resulting from the discounts.

The government must evaluate the prosecutor's demand by July 24. Minister of Agriculture Uldis Augulis (ZZS) acknowledged that a draft response has been prepared but did not reveal its content. When asked about the legality of the decision, Augulis stated that "the government only makes legal decisions."

The Cabinet's closed session on July 21 includes an item regarding the response to the Prosecutor General's Office. The draft decision proposes supporting the response draft and instructing the State Chancellery to finalize and send it. If the government rejects the protest, Prosecutor General Armīns Meisters hinted that the case could reach the Constitutional Court.

In June, Meisters noted that the criminal process regarding the wood industry support is progressing and will not take "years to reach a result." He also said that an internal review did not confirm a leak of information about investigative actions.

The criminal case involves ten individuals, including former Minister of Agriculture Armands Krauze (ZZS), former state secretary of the Ministry of Agriculture, current state secretary Ģirts Krūmiņš, former LVM board chairman Pēters Putniņš, and others. The investigation covers two directions: possible abuse of office by Ministry of Agriculture officials and negligent behavior by LVM officials, which may have caused losses of around 50 million euros to the state.