JSC Latvijas kuģniecība (LK) has today contacted the Prosecutor General’s Office and asked it not to delay the investigation into the defrauding of Latvijas kuģniecība’s assets regarding which criminal proceedings were instigated almost five years ago. Within the aforementioned criminal proceedings, certain facts have long since been investigated which are now being published having been sourced from materials incorporated within the proceedings of a civil case being currently heard in the High Court in London. LK instigated the aforementioned legal proceedings against five offshore companies which expropriated LK assets worth almost USD 100 million. In the opinion of LK, the admissions and testimonies of the defendants that are incorporated within the materials of the London case constitute a great opportunity to accelerate the course of the lengthy investigation here in Latvia.

LK would like to draw attention to the fact that former LK officials including Oļegs Stepanovs, Valērijs Godunovs, Alvis Akmens and others have been classified as suspects in the criminal investigation into the defrauding of LK assets. During the court case in London, these same persons or their legal representatives have admitted their role in the defrauding of the said assets and have provided sufficiently detailed testimony regarding how they spent the money. For example, former LK Supervisory Council Member, Oļegs Stepanovs has testified through his legal representative that he personally requested Jurijs Paderovs (former Head of LK) to assist in establishing a network of intermediary companies with the goal of accumulating funds with which to buy LK shares. The defendants in the London court case have personally admitted that a large amount of money was defrauded from LK and came into the possession of Recoletos, an offshore company controlled by Oļegs Stepanovs. Subsequently, these funds were used to buy shares in two other offshore companies, Ojay Limited and Eastgate Properties which, in turn, were 27.55% shareholders in LK. 

In its submission to the Prosecutor-General’s Office, LK stresses that the testimonies of the defendants in the London court case constitute direct proof of the deliberate intention of Oļegs Stepanovs and his long-standing associates, Valērijs Godunovs and Ņina Gļebova to commit a criminal offence, within the framework of which fictitious ship chartering companies would be established with the goal of defrauding LK assets. LK points out that all of these facts have been known to the Latvian law enforcement authorities for at least several months, if not years. 

In recent days, materials from the London court case have been distributed to the Latvian media, which have aroused particular interest due to their allusion to the ostensible LK ownership structure prepared by the defendants in the aforementioned court case. Persons unknown to LK have succeeded in persuading some sections of the Latvian media that the London High Court has acquired proven evidence of this scheme, even though in reality the scheme was prepared by the defendants. Pertinently, the High Court has described these testimonies as "shadowy".

LK asks the Prosecutor General's Office to finally tackle the investigation of this large-scale economic crime and to bring Oļegs Stepanovs and his associates to trial, instead of exclusively focussing its attention on the speculation of the suspects in the criminal proceedings about the possible influence of various politicians on the privatisation process. 

The LK Management Board stresses that it is working for the benefit of all shareholders and that it is neither being "influenced" nor "controlled" by any forces or persons outside the circle of LK shareholders. Any assumptions regarding the influence of various politicians on the LK Management Board or the operation of the company are fantasies and attempts on the part of the suspects in the aforementioned criminal case regarding the defrauding of LK assets to evade responsibility for their actions.  

Additional information:

Marita Ozolina-Tumanovska

Head of PR & Advertising Department

Phone: +371 67020120, 29287169

E-mail : marita.ozolina@lscgroup.lv