VASKEVICS CLOSER TO JUSTICE?

C O N F I D E N T I A L RIGA 000700 SIPDIS E.O. 12958: DECL: 11/13/2018 TAGS: PGOV KCOR KJUS PSNR LG SUBJECT: VASKEVICS CLOSER TO JUSTICE? REF: RIGA507 Classified By: Ambassador Charles W. Larson Jr. for reason 1.4 (b) ¶1. (C) Summary: The Anti-Corruption Bureau (KNAB) has forwarded the case of Vladimirs Vaskevics, former head of the Customs Police and current Deputy of the State Revenue Service, to the Prosecutor General's office for prosecution. Proposed charges against Vaskevics include participation in unlawful property transactions and incorrect income declaration. Although there is no stated timeframe for pressing charges, Vaskevics cannot leave Latvia. There are many hurdles to overcome before this case is closed and the final outcome is not sure. End Summary. ¶2. (C) In August Valdimirs Vaskevics lost his security clearance and was no longer able to perform his duties as the head of the Customs Police (reftel). In early September he was promoted to the position of Deputy of the State Revenue Service, where a security clearance was not necessary. Since that time, three Anti-Corruption Bureau (KNAB) investigators who work for KNAB Deputy Juta Strike, the head of the section investigating Vaskevics, have undergone tax audits by the state revenue service. This is a disproportionate percentage compared to other agencies and is inconsistent with investigations of members of other institutions. According to one opposition parliament member, Vaskevics is responsible for the audits of the KNAB investigators. ¶3. (C) On November 6 the KNAB forwarded the Vaskevics case to the Prosecutor General's office. Charges against him include violations of income declaration procedure and conflict of interest. The KNAB determined that from 2002 to 2007 Vaskevics participated in unlawful property transactions and did not correctly declare income from these deals. He potentially faces a maximum of up to 8 years in prison for both charges. Pending the decision of the prosecutor on how to handle these charges, Vaskevics cannot leave Latvia. A KNAB employee states that there is no set timing for action and no estimate on the whether or when the prosecutor will press charges against Vaskevics. KNAB sources confirm that the main case against Vaskevics is complete, but it is possible there will be additional charges filed against him in future. ¶4. (C) Comment: The fact that Vaskevics' "punishment" for losing his clearance was a promotion and pay raise demonstrates the pervasive nature of corruption in Latvia. That the State Revenue Service is investigating KNAB employees on a seemingly disproportionate basis is also a demonstration of the nature of the problem here. That the public largely shakes their head at these things and continues to accept that "this is how things work" underscores the challenge of changing the system. If the prosecutor presses charges in the near future, and we expect he will, and a court convicts and sentences Vaskevics, this case would be a significant step in fighting corruption by state officials for the KNAB and the Prosecutor General. But, there are far too many steps before a conviction to call it a done deal. With appeals, stalling techniques and continued individual attacks on those involved in the case through the State Revenue Service, the process will certainly take months if not years to play out, during which Vaskevics will likely retain his job or at least his salary. End Comment LARSON