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Latvia Ministry Spent Millions More on Computers by Blocking Lowest Bidder

Latvian Education Ministry Accusations of Improper Procurement Practices Allegations have surfaced concerning the Ministry of Education and Science (MES) of Latvia, led by Anda Čakša, regarding a procurement process for computers intended for educational institutions. The accusations center…

Latvia Ministry Spent Millions More on Computers by Blocking Lowest Bidder

Latvian Education Ministry Accusations of Improper Procurement Practices

Allegations have surfaced concerning the Ministry of Education and Science (MES) of Latvia, led by Anda Čakša, regarding a procurement process for computers intended for educational institutions. The accusations center on the exclusion of a company that offered the lowest price, ultimately leading to the purchase of more expensive computers from another supplier. The controversy raises questions about transparency and economic justification in public spending.

Background: EU-Funded Procurement Project

In late 2024, the Latvian MES initiated a project, supported by European Union funds, to procure computers worth €20.08 million for apply in basic and secondary education. The project, titled “Ensuring educational institutions for the qualitative implementation of improved general education content at the basic and secondary education level,” aimed to upgrade technology infrastructure within the country’s schools. The procurement process took place through the Ministry of Interior’s Electronic Procurement System (EIS).

The Disputed Procurement Process

Initially, the MES indicated a willingness to adjust the quantity of computers purchased to maximize the use of available funds. Although, after the lowest bidder, Capital, was excluded from the tender in October 2024, the ministry proceeded to purchase computers from other suppliers at a higher cost. The decision to exclude Capital was made despite the company meeting the technical specifications, according to their own assertions and subsequent communications with the ministry.

The MES sought computers with various configurations, including different operating systems (Google Chrome and Windows), screen sizes, and mouse types (wired and wireless). The technical requirements specified by the ministry were described as minimal, with companies often offering products exceeding those requirements. Capital, for example, offered Chromebooks with 14-inch screens at the same price as the minimum requirement of 13-inch screens.

Capital’s Exclusion and the Commission

On October 25, 2024, Evija Stočka, Project Manager of the Ministry of Information Technology Department, requested additional technical specifications from Capital. Capital provided the requested information, asserting that their products already met the requirements. Despite this, the MES moved to exclude Capital from the procurement process. Kaspars Veldre, a member of the procurement commission and deputy director of the Ministry of Information Technology Department, reportedly informed Capital in advance of the decision.

The MES then formed a commission to evaluate the circumstances, a move that reportedly violated the General Agreement governing the procurement process. According to the agreement, the State Digital Development Agency (VDAA) had the sole authority to establish such a commission. Capital requested the opportunity to present its arguments before the commission but was initially denied. The MES ultimately suspended Capital’s participation in the EIS catalog for two months, a penalty the ministry stated was used only once in 2024.

Cost Discrepancies and Subsequent Purchases

The MES justified its actions by claiming that Capital had offered a computer model that did not meet the technical specifications. However, the evidence suggests that the issue stemmed from a discrepancy in the product description within the EIS system, which Capital promptly corrected.

Following Capital’s exclusion, the MES created a new procurement basket, which was awarded to Baltic Information Technologies (BIT) and the association “Tcon and Lielvārds” on January 20, 2025 – just one week before Capital’s suspension was set to expire. This timing has raised questions about potential deliberate avoidance of a more competitive bidding process.

The resulting purchases were significantly more expensive. For example, the MES purchased HP computers with wired mice for €483 each, compared to a price of €399.12 for similar computers with wireless mice offered by Capital. This difference amounted to an additional €84 per computer for the mouse cable alone, totaling €640,000 for the entire purchase. The MES purchased 20,294 computers from BIT for €485/piece, while Capital had offered identical computers for €399/piece, costing an additional €1.75 million.

BIT’s Relationship with the Ministry

BIT has been a significant supplier to the Latvian MES for several years. In 2022, BIT secured a €8.6 million contract from the ministry, representing 60% of its annual turnover. In 2023, BIT delivered computers worth €6.8 million to the MES, accounting for 43% of its turnover. In 2025, BIT supplied the ministry with computers worth €11.1 million.

Current Status and Key Figures

As of February 23, 2026, Anda Čakša is no longer the Minister for Education and Science, having served in the role from December 14, 2022, to February 2025. She was replaced by Dace Melbārde, who received the ordered computers. Čakša previously served as Minister for Health from July 11, 2016, to January 23, 2019. She is a member of the New Unity alliance and continues to serve as a Member of the Saeima.

Baiba Braže, the current Minister of Foreign Affairs, and Anda Čakša discussed strengthening cooperation between universities and foreign policy on June 28, 2024, with rectors from the University of Latvia, Riga Technical University, Riga Stradiņš University, and the Latvia University of Life Sciences and Technologies. (Ministry of Foreign Affairs)

About the author: Marcus Liu - Business Editor

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