Latvian government rejects prosecutor's protest, will not cancel timber industry support

The Latvian government has decided against revoking a decision that provided support to the timber industry, rejecting a protest lodged by the prosecutor general's office. The prosecutors had argued that the government's actions, specifically altering the timber pricing procedures for the state-owned company "Latvijas valsts meži" (LVM), were unlawful and resulted in substantial losses for the state.

Prime Minister Evika Siliņa informed reporters that the government cannot comply with the prosecutor's demand. "First, we have nothing to reconsider. It is not physically, legally possible. We cannot fulfill it. The contract has been executed, the work is completed," Siliņa stated, likening the request to reopening and executing individuals from World War II. She emphasized that the government's decision was implemented, and there is no legal avenue to reverse it.

The prosecutor general's office had based its protest on the conclusion that the government's decisions were founded on inaccurate information, leading to significant, though unspecified, state damages. If the government had accepted the protest, companies would have been required to repay the price difference resulting from the discounts granted.

Instead of reversing the decision, the government plans to request an explanation from the Constitutional Court regarding the government's legal authority in such matters and the extent to which it can intervene in the operations of a capital company. This move aims to prevent similar situations from arising in the future. "We are not rejecting what the prosecutor general is asking for, but we are seeking clarification because we are at an impasse," Siliņa explained.