Latvian “businessman” Julijs Krumins has recently made some interesting confessions regarding his corrupt activities.
Besides general statements about how Andris Skele and Aivars Lembergs have been bribing and looting the government for many years, he also said a few things that tie in with the pyramid fraud at Parex Bank. The decision of the Vienotiba political party to fraudulently cover-up the fraud at taxpayer expense rather than expose the fraud and try to recover the stolen money resulted in Latvia’s economic and demographic collapse.
Krumins claims that he bribed former KGB agent and Port of Riga boss Leonids Loginovs, who was caught in corrupt deals involving Parex Bank but was never prosecuted and still retains his position today even though the government claims it is now cleaned up.
But more importantly, Krumins says that he illegally funded Inguna Sudraba and Jorens Raitums’ political party “No Sirds Latvijai.” Sudraba and Raitums were on the Parex Bank credit committee for several years prior to the Parex bailout when it was learned that a lot of the loans they approved would never be paid back, having funded several notorious oligarchs and bribes to Latvian politicians (Daimler, Alstom, etc.).
After the implosion of Parex and before the founding of “No Sirds Latvija,” Sudraba and her friend Aivars Veiss (former State Treasurer who organized trades in which millions of euros of Treasury money disappeared) left Parex and were chosen by Vienotiba to hold important government positions. She became State Auditor (responsible for investigating the loans at Parex which she approved herself, not surprisingly she didn’t find any problems) and he became Head of the Latvian Post Office.
We wish this earlier history appeared in the articles now being published about Krumins, Sudraba, and Raitums…
Inguna Sudraba was a member of the Parex Bank Credit Committee from 2003 to 2004 and therefore was responsible for (1) making undisclosed-related-party loans, (2) making loans that exceeded the bank’s lending limit, and (3) acting as credit committee for secret subsidiary Extro Bank of Russia.
In 2008 and 2009, the Latvian people learned that half of the loan portfolio of Parex was bad, thus indicating severe problems with the Parex Credit Committee.
Was this the end of Sudraba’s career? No! Now in 2012, she is the Latvian State Controller (Auditor)!
Sudraba, working as State Controller, cannot find any corruption in Latvia. For example, Parex arranged financing for the “Southern Bridge” in Latvia. Latvian taxpayers will pay 1,000 million euros for a bridge that is worth 300 million euros. Sudraba cannot figure out where the other 700 million euros went.
Latvian newspapers keep naming Sudraba as a wonderful person who should be President or Prime Minister in the future. The articles never mention that she was on the Parex Credit Committee.
One of the items from John Christmas’ Parex Bank whistleblowing list from 2004 was that Parex secretly owned a bank in Russia.
Christmas claimed that Parex owned and operated Extro Bank. For example, the Parex Credit Committee approved the loans that Extro Bank extended. Latvian State Controller Inguna Sudraba was on that committee.
The fraud claim is backed up by an email written by Parex vice president Gene Zolotarev. The claim is also backed up by a Skype conversation (below) with former Parex manager Christa Rubstein. She also confirms in the conversation that Parex paid employee compensation illegally.
Even though three witnesses wrote that Parex owned Extro Bank, the auditors at Ernst & Young did not care at all and ignored the huge fraud.
Therefore, Parex was able to sell Extro Bank to Banco Santander. Santander is one of the largest banks in Europe and has millions of shareholders in Spain and the United Kingdom.
According to emails (below) from a private investigator who contacted Christmas, Banco Santander got “robbed” in the purchase. The loss could have been 40 or 50 million euros.
Law enforcement is not interested at all, as usual. Also, the media is not interested.