(Luxembourg, 15 April 2026) – The European Public Prosecutor’s Office (EPPO) in Riga (Latvia) has completed the pre-trial investigation of a possible fraud involving EU funds at the Municipality of Valka. Three individuals, including two municipal officials, have been formally charged with fraud and abuse of office.
It is alleged that the public officials, together with representatives of a private company, committed illegal actions in order to obtain close to €700 000 in public funds, of which €670 000 from the EU’s European Regional Development Fund (ERDF) and around €23 000 from Latvia’s state budget, for a project implemented by the municipality.
Under the terms of the project, an industrial building was to be constructed and made publicly available for general use by companies. However, the evidence indicates that the structure was built in the interest of a previously determined company.
In addition, the facility was built on a land parcel that did not qualify as a degraded territory eligible for revitalisation, as required by the project, but was selected due to its proximity to the company’s existing structure – in breach of the conditions for the implementation of the project. It is understood that the firm was also involved in the design of the building.
The case will be referred to court in the near future.
All persons concerned are presumed to be innocent until proven guilty in the competent Latvian courts of law.
The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.