RIGA, Oct 20 (LETA) - At least EUR 54,000 may have been embezzled from the budget of Rezekne Vocational School, according to an audit carried out by the State Audit Office, which has reported the findings to the Education and Science Ministry, the State Police, and the Prosecutor’s Office; a criminal investigation has been launched.

The school's principal Benita Virbule has been suspended pending investigation. The Education and Science Ministry has not publicly commented on the nature of the suspected violations, saying that it will release further information only after an internal investigation is completed.

The Audit Office reports that it has identified possible fraudulent activities - specifically, falsification of payment documents in order to transfer funds to third parties.

Such actions were possible because, when transfers were made, the recipient's name was not checked against the account number (IBAN), and funds were transferred to persons who were not entitled to receive them, the Audit Office said.

The payments were made from the school's bank accounts to three different accounts, each time listing the same recipient. For example, payment for services provided by a particular company were made not only to the company's account specified in the contract but also to three other accounts, the ownership of which is unknown to the Audit Office.

Several instances were also found where the same invoice had been paid twice - once to the account listed in the invoices and a second time to another account, whose ownership is likewise unknown. Between 2019 and 2025, nearly EUR 54,000 was transferred to these three accounts in total.

The Audit Office's interim report says that, following the auditors' questions, the school's principal suspended the school's accountant pending the audit. The principal also told the office that she had contacted the police regarding the suspected violations.

The report goes on to say that Latgale Department of the State Police has launched criminal proceedings in accordance with Section 177 of the Criminal Law - large-scale fraud or fraud committed by an organized group.

Rezekne Vocational School's Deputy Principal Irena Kroice has been appointed the school's acting principal.