GOVERNMENT MOVES TO DISMISS ANTI-CORRUPTION CHIEF

UNCLAS RIGA 000771 SIPDIS SIPDIS E.O. 12958: N/A TAGS: PGOV KCOR KCRM LG SUBJECT: GOVERNMENT MOVES TO DISMISS ANTI-CORRUPTION CHIEF Ref: A) RIGA 723 B) RIGA 731 C) RIGA 741 ¶1. Summary: In a closed meeting on October 16, the Latvian government supported the dismissal of Aleksejs Loskutovs, the chief of the Latvian Corruption Prevention and Combating Bureau (KNAB) on the grounds of his unsuitability to continue to hold his position. They made the decision after an ad hoc committee, headed by Prosecutor General Janis Maizitis, made no recommendation on action and after Maizitis separately announced that he found no evidence of criminal activity by Loskotovs. Maizitis publicly criticized the dismissal, as did former president Vike-Freiberga. Current President Valdis Zatlers said October 17 that Prime Minister Kalvitis' steps against Loskutovs are excessive given on the allegations presented, and that a reprimand may have been more appropriate. The parliament will make the final decision about whether to dismiss Loskutovs, and this October 18 vote is increasingly seen as a barometer of confidence in the government. End summary. ¶2. In an unsurprising move, the GOL supported the dismissal of KNAB Chief Aleksejs Loskutovs. News services state that the GOL evaluated violations at the KNAB that the State Audit Office identified, Loskutovs' previous job performance, and his conduct after Kalvitis suspended him pursuant to Audit Office's report. ¶3. After Kalvitis suspended Loskutovs in late September 2007 the GOL tasked an ad hoc committee, headed by Maizitis, with studying the necessity of dismissing Loskutovs. The report was submitted on October 15, but made no recommendations, as Maizitis said the group was created without making clear how it should carry out its function. Separately, Maizitis stated that his office's investigation showed no grounds for opening a criminal probe against Loskutovs because there were no criminal offences. Maizitis continues to be a vocal opponent of the dismissal and characterizes the government's decision as "political." ¶4. President Zatlers met with Kalvitis October 17 to hear the PM's rationale for removing Loskutovs from office. The president officially remains neutral about the dismissal, but stated following the meeting that the actions against Loskutovs to date have been excessive, and said a reprimand may have sufficed. Zatlers also urged members of parliament to approach this issue responsibly and said that the vote would indicate the body's confidence in the government. ¶5. The Saeima will now make the final decision as to whether to dismiss Loskutovs. The October 18 vote requires a simple majority. Although opposition parties in the Saeima vow to do everything they can to keep Loskutovs in office, previous voting on such controversial issues has demonstrated strong coalition discipline. ¶6. Comment: The process that Kalvitis launched last month is continuing on course. Along the way, though, the political dynamic has changed. Loskotovs has not gone quietly and Maizitis has spoken out. Now the President has weighed in. As the ground has shifted, Kalvitis may find he has overplayed his hand. BAILEY