LEMBERGS ON THE TOWN, AND THE JUDICIAL HOT POTATO

C O N F I D E N T I A L SECTION 01 OF 02 RIGA 000565 NOFORN SIPDIS E.O. 12958: DECL: 09/16/2018 TAGS: PGOV PINR KCOR KJUS LG SUBJECT: LEMBERGS ON THE TOWN, AND THE JUDICIAL HOT POTATO REF: RIGA 454 Classified By: Ambassador Charles W. Larson Jr. for reason 1.4(b) ¶1. (C/NF) Summary: Prosecutor General Janis Maizitis has lifted major restrictions limiting Ventspils Mayor (and noted oligarch) Aivars Lembergs, participation in government and freedom of movement. Additionally, two regional courts, citing heavy workloads, have refused to try the case, demonstrating an unwillingness to take on such a controversial and high-profile endeavor, resulting in a game of judicial hot potato. For his part, Lembergs remains active in his defense, both speaking out publicly, while also submitting claims against the Latvian government over a previous case where he was acquitted of abuse of power. These actions add insult to the already disappointing injury that the Latvian judicial system is suffering due to its inability to try a man so broadly accused. End summary -------------- Lifting of Restrictions -------------- ¶2. (C) August 26 marked Lembergs return to the public arena with his participation in a Ventspils city council board meeting. His presence was made possible by the lifting of restrictions that had been imposed during the investigation of the many charges against him. (reftel) According to the new terms, Lembergs may not participate as the city council head but can serve as a council member. Previously Lembergs was prohibited from visiting state and municipal institutions, attending meetings and street rallies, and was required to spend a specified amount of time at home each day. In a private meeting with Ambassador Larson, Prosecutor General Maizitis explained that as the investigation had been completed the restrictions were no longer needed. He also asserted that the time had run out on the case for which the restrictions were imposed. Additionally, NGO contacts have told us that the Prosecutor General,s office was growing sensitive to human rights concerns surrounding the length of time that the restrictions had been in place. -------------- Follow the bouncing case -------------- ¶3. (C/NF) At the beginning of August one segment of the case against Lembergs, his son Andrijs and their business partner Ansis Sormulis was sent the Supreme Court to determine jurisdiction. The Supreme Court subsequently forwarded the case to the Riga Regional Court, which refused to try the case and returned it to the Supreme Court. Next the Supreme Court sent the case to the Kurzeme Regional Court, which, citing a heavy work load, stated on August 29, that they would return it to the Supreme Court (this handoff has not yet been made). Maizitis told Ambassador Larson that the judges in question fear that if they accept the case, their personal and professional lives will be subjected to intense public scrutiny. Also, while another part of this case is ready to be sent to court, Maizitis is waiting to determine which court might keep it, to avoid another round of judicial hot potato. Maizitis quipped privately to Ambassador Larson that they should send the file to Latgale, a depressed region in the East of Latvia, because the judges there don,t have as many contacts with Riga as those in other cities. ¶4. (C/NF) One additional case, of which Lembergs is unaware, involves an American accounting firm that is conducting an audit of 200 million LVL in allegedly-laundered money. The investigation was initiated by the company itself, after learning that some of its employees may have been involved. The company is cooperating with authorities and has handed over computers and records to investigators. Maizitis, office is holding the information close and has briefed only the President and the Prime Minister. (Note: That he also briefed the Ambassador is a further sign of the strong and mutually beneficial relationship that we have developed with Maizitis. End note) -------------- The Empire Strikes Back -------------- ¶5. (U) Lembergs has recently counter-attacked by submitting financial claims against the Latvian government. Earlier in September Lembergs asked the Justice Ministry for 104,450 LVL (more than $200,000) as compensation for being wrongly accused in the "Grinbergs affair", in which he was acquitted of abuse of power charges. The Ministry agreed to pay him 2400 LVL (about $5,000). On September 9 the Riga Regional Court agreed to hear Lembergs case against the Prosecutor General RIGA 00000565 002 OF 002 as an institution and the Finance Ministry (as the Prosecutor General's office has no assets, the Finance Ministry was called as a second defendant). Lembergs is suing the two entities for 1,000,000 LVL (about $2,000,000), also for wrongful accusation in the "Grinbergs affair." ¶6. (C/NF) Comment: The Prosecutor General lifting Lembergs restrictions is a very positive turn because it signals the end of the major portion of the overall investigation. It also shows the public that Lembergs is not as dangerous a threat as he used to be, but this chapter is far from over. The fact that the case has been sent to the Supreme Court three times, and has been refused by two jurisdictions signifies the unwillingness of courts to put themselves under the intense scrutiny of the public, the press and the parliamentarians who appointed them. Lembergs is still active in the press supporting his defense, launching cases against the Latvian government and the Latvian judicial system is embarrassing itself with its inability to step up to the plate and finally try him. End Comment LARSON