Latvia suspends major IT procurements amid fraud probe, PM says

Prime Minister Andris Kulbergs has imposed a 30-day moratorium on large and expensive state information and communication technology (ICT) procurements, citing concerns over potential fraud and the need for a comprehensive review.

During an interview on Latvian Television's "Viens pret vienu," Kulbergs revealed that companies and individuals implicated in a criminal investigation by the European Public Prosecutor's Office (EPPO) into suspected fraud are also involved in these suspended procurements. The sums involved are described as "huge," necessitating a complex and extensive review process.

“

Latvia has "missed the mark" by leaving the State Digital Development Agency under the supervision of a single ministry.

Kulbergs expressed his view that Latvia has "missed the mark" by placing the State Digital Development Agency under a single ministry. He advocates for a more integrated structure, envisioning the agency as a backbone for a unified system and centralized process for resolving ICT issues across all ministries. He acknowledged that resolving these issues within his four-month term is unlikely but stressed the importance of laying the groundwork.

“

The sums of money intended to be spent on the ICT procurements paused by his moratorium are huge.

Further highlighting issues within Latvia's ICT sector, the Prime Minister pointed to the non-use of open-source code in state systems, which hinders interoperability and leads to the development of numerous individual systems. He also questioned the practice of a few companies dominating state ICT procurements, stating it would be acceptable only if these companies also served private clients and produced in-demand products, which he claims is not the case.

The moratorium, effective from June 18, 2026, does not apply to procurements under 142,000 euros. Kulbergs plans to meet with ICT sector representatives again on July 27 to discuss the path forward, emphasizing the need for efficient use of both state and EU funds to yield tangible benefits for society and businesses.

“

It would be better to structure it as a backbone, so that all ministries have a unified system and a centralized process for resolving ICT issues.