VZCZCXRO2889
RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHRA #0073 0351506
ZNR UUUUU ZZH
R 041506Z FEB 09
FM AMEMBASSY RIGA
TO RUEHC/SECSTATE WASHDC 5598
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

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