VZCZCXRO1974
OO RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHRA #0771 2901417
ZNR UUUUU ZZH
O 171417Z OCT 07
FM AMEMBASSY RIGA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4428
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

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