(adds paragraphs 10-15 and paragraph 17)

RIGA, April 3 (LETA) - On behalf of the European Public Prosecutor’s Office (EPPO) in Riga, the Corruption Prevention Bureau carried out searches on Thursday and detained five suspects, including Jekabpils Region Council Chairman Raivis Ragainis (Latvian Green Party), other public officials and representatives of private companies, in a probe into the construction of a EUR 16.9 million anti-flooding dam, co-funded by the European Union, the EPPO said in a press release.

According to the investigation, municipal officials may have committed, in collusion with representatives of private companies, illicit acts during the public procurement procedure for the construction of an infrastructure to prevent floods in the city of Jekabpils, said the EPPO.

The project involved the reconstruction of embankments along both banks of the Daugava River and building of anti-flood infrastructure, following massive floods in 2023 that severely damaged the existing protective structure.

The project, worth over EUR 16.9 million, was co-funded by the European Regional Development Fund (ERDF) to up to 85 percent, with the remaining 15 percent funded by the state budget.

The suspects include the mayor, the deputy mayor and members of Jekabpils Region Council, as well as representatives from private companies.

The public officials are believed to have manipulated the public call for tender, through abuse of their position, in order to put pre-selected construction companies in a privileged position in the public procurement procedure.

The EPPO also suspects that other provisions were violated, including the building regulations and technological requirements. Based on the evidence, building materials of insufficient quality may have been used and the materials for the construction may have been overpriced.

LETA has been unable to get in touch with EPPO prosecutor Gatis Doniks so far, while the Corruption Prevention Bureau confirmed to LETA that it had carried out searches in Jekabpils earlier today, but no further information may be revealed at the moment.

LETA has also been unable to get in touch with Ragainis and his deputy Karlis Stars (National Alliance).

Ragainist' other deputy, Alfons Zuks and Jekabpils Region Council's Executive Director Uldis Skreivers confirmed to LETA that the Corruption Prevention Bureau's officers carried out searches at the council Thursday morning.

Zuks said that he was currently standing in for Ragainis. On Thursday, Zuks chaired an extraordinary meeting of Jekabpils Region Council, which was attended by 11 out of 19 councilors. The meeting was held to discuss issues not related to the dam reconstruction.

Jekabpils Region Council member Aivars Kraps told he and other council members only learned about the council chairman and his deputies' detentions from the media.

Skreivers said that searches had been carried out not only at the offices of Ragainis and Stars, but also in their homes.

Latvian Green Party's board chairman Edgars Tavars told LETA that he also had learned about the detentions from the media. He said that he had not been able to contact Ragainis, adding that Ragainis "has done very much to save the city from floods."

Tavars also admitted that these developments may have an impact on local elections.

According to LETA archives, Jekabpils Region Council signed contract with company Jekabpils PMK in the fall of 2023 for reconstruction of the anti-flooding dam in the city.

Jekabpils PMK representatives declined to comment on the news. LETA has learned that the company CEO and co-owner Maris Dimants and board member and co-owner Arnis Putnins' telephones are turned off at the moment.

According to Firmas.lv, Jekabpils PMK belongs to Arnis Putnins (50 percent), Diana Skacko (25 percent) and Maris Dimants (25 percent). The company's turnover amounted to EUR 24.23 million and profit to EUR 92,550 in 2023. The company employs around 230 workers.