Latvia Scraps Funding Source Disclosure for Construction Projects

Latvia has amended its Construction Law to remove the requirement for individuals undertaking construction projects for their own needs to disclose the source of their funding. The changes, approved by a majority in the Saeima at the end of last year, have sparked debate regarding transparency in the construction sector.

Amendments and Voting Details

The amendments, prepared by the Union of Greens and Farmers (ZZS), stipulate that natural persons applying for the start of construction perform are no longer obligated to indicate how the project will be financed. 57 Members of Parliament (MPs) representing ZZS, the “Latvija first” party, “Apvienotā saraksta,” and “Stability” voted in favor of the changes. 31 MPs from the “New Unity” and “Progressives” coalitions opposed the amendments.

Rationale Behind the Changes

Proponents of the amendments argue that the previous requirement was disproportionate. They contend that construction projects can span several years, and funding sources may change during that time, making the initial disclosure obsolete, and burdensome.

Concerns Raised

Despite assurances that the decision is not related to reducing bureaucracy, some stakeholders have expressed concern. For example, Sauka expressed surprise at the removal of the proof of origin requirement, calling it “a big step backwards” and questioning the rationale behind the decision.

About the Union of Greens and Farmers

The Union of Greens and Farmers (ZZS) is an agrarian political alliance in Latvia, founded on July 25, 2002. It comprises the Latvian Farmers’ Union, Latvian Social Democratic Workers’ Party, and For Latvia and Ventspils. The ZZS generally positions itself in the center of the political spectrum, with elements of agrarianism, green conservatism, economic nationalism, and soft Euroscepticism. Aivars Lembergs is considered the leading figure and chief financial supporter of the alliance.