Latvian Prosecutors Challenge Government Support for Timber Firms

Latvia's Prosecutor General's Office has formally protested government decisions that allegedly provided unlawful support to timber industry companies. After months of review, prosecutors concluded that the Cabinet of Ministers acted illegally by instructing the state-owned company Latvijas valsts meži (LVM) to alter its timber price-setting procedures. The Prosecutor General's Office has submitted a protest to the government, demanding the cancellation of these decisions.

The core of the protest challenges the discounts granted to timber companies, which prosecutors argue were based on false information and resulted in significant losses for the state, though the exact amount of damages has not been specified. If the Cabinet of Ministers accepts the protest, affected companies would be required to repay the state the difference in price caused by the discounts.

“

the government only makes legal decisions.

The government is obligated to review the Prosecutor General's protest by July 24. Agriculture Minister Uldis Augulis acknowledged that a draft response to the Prosecutor General's Office has been prepared, but he declined to reveal its contents. When questioned about the legality of the government's previous support measures for timber companies, Augulis asserted that "the government only makes legal decisions."

A closed session of the Cabinet of Ministers on July 21 included a discussion on a draft response to the Prosecutor General's Office, with the protocol suggesting support for the draft and instructing the State Chancellery to formalize and send it. Should the government reject the protest, the matter could escalate to the Constitutional Court, according to Prosecutor General Armīns Meisters. Meisters had previously indicated that the investigation into the so-called timber industry case was progressing, with evidence and investigative directions becoming clearer.

“

This will certainly not take years to reach a result.