FORMER KNAB OFFICIALS SENTENCED: FINES AND JAIL

UNCLAS RIGA 000073 SIPDIS E.O. 12958: N/A TAGS: PGOV KCOR KJUS ASEC LG SUBJECT: FORMER KNAB OFFICIALS SENTENCED: FINES AND JAIL TIME REF: 08 RIGA 228 ¶1. Summary: Two former Anti-Corruption Bureau (KNAB) officials were found guilty on February 2 of charges surrounding the theft of money taken from KNAB vaults. Janis Imsa and Indra Veipa were sentenced to 7 and 4 years respectively. The discovery of the theft in spring 2008 was the catalyst for the sacking of former KNAB Chief Aleksejs Loskutovs. The prosecutor found no indication of counter-KNAB conspiracy, as Loskutovs and others previously claimed. The relatively quick decision comes at a time when the KNAB's ability to recover from scandals and political attacks is more important than ever. End Summary. ¶2. On February 2, Janis Imsa, former chief specialist in the KNAB confidentiality maintenance department, plead guilty to charges of embezzelment for taking money that was evidence in cases from KNAB vaults. He received seven years (the prosecutor had requested four) in jail, confiscation of property and a monetary fine. Indra Veipa, Imsa's boss, plead not guilty to similar charges of embezzelment and lack of oversight. She was acquitted of the embezzelment charges but found guilty of the lack of oversight charges. In addition to her receiving five years in prison (the prosecutor had requested six),confiscation of assets and a monetary fine, she has been banned from holding public positions for five years after her release. Veipa can appeal the ruling. ¶3. The arrest of Imsa and Veipa was the catalyst for the June 2008 sacking of former KNAB Chief Aleksejs Loskutovs for mismanagement of the KNAB. When the two officials were first arrested last April, Loskotovs claimed, and many believed, that the two had been put up to the embezzlement by political opponents of the KNAB who wished to disable the organization. The prosecutor and the court found no evidence of a conspiracy. ¶4. Comment: This high profile case was handled relatively quickly, with the court system using it as an example to others who may be similarly tempted. Now, with the new KNAB chief selection process in its last stages, and the economic and political crises in full swing, it will be more important than ever for the KNAB not to make the same mistakes of lax oversight of its employees. The only way for the KNAB to preserve its independence, and the public's trust is to demonstrate that the organization is corruption-free and well managed. End Comment ROGERS