On Thursday, 24 September, the Saeima adopted in the final reading amendments to the Criminal Law introducing criminal liability for prohibited agreements in public procurement, also known as cartels.

Currently, administrative penalties for prohibited agreements in procurement can only be imposed on legal persons. The amendments will extend penalties to individuals who organise or implement such agreements in practice, for example, by agreeing on prices or coordinating bids in public procurement. Criminal liability will apply where prohibited agreements concern large-scale procurements.

Natural persons may be sentenced to imprisonment for up to three years for a prohibited agreement in public procurement if the offence is committed on a large scale. Where a prohibited agreement concerns a public procurement, the term of imprisonment may reach up to five years. Alternative penalties include probation supervision, community service, or a fine, with the additional penalty option of prohibiting a person from holding certain positions or engaging in a particular type of business activity for a specified period.

The amendments provide for the possibility of releasing a person from criminal liability if, after entering into a prohibited agreement, they are the first to voluntarily report the offence and actively assist in its detection and investigation.

The Saeima also adopted in the final reading related amendments to the Law on the Procedures for the Coming into Force and Application of the Criminal Law, which set out the criteria for determining whether a prohibited agreement has been committed on a large scale. Criminal liability will apply where a prohibited agreement is made in a procurement with a contract value of at least EUR 750 000 excluding value added tax or, in the case of a works contract, at least EUR 1 million excluding value added tax.

Saeima Press Service