When auditing the annual report for 2024 of the Ministry of Transport, the State Audit Office of Latvia has identified irregularities in the awarding of remuneration to an official. The financial audit revealed that a bonus of 4,913 euros was paid to an official at the Ministry of Transport during the period when s/he was suspended from performing his/her duties as part of a disciplinary case. Such action contradicts the provisions of Section 21 of the Law on Disciplinary Liability of State Civil Servants, which provides that only a monthly salary and social guarantees shall be retained for suspended officials.
“The State Audit Office of Latvia draws attention to the fact that the awarding of remuneration contrary to the legal framework undermines public trust in state administration and its payment during the examination of a disciplinary case contradicts the essence of the awarding of the bonus,” stated Mr Mārtiņš Āboliņš, Council Member of the State Audit Office of Latvia.
The auditors have found that two weeks after an order was issued to initiate disciplinary proceedings and suspend an official from performing his/her duties, the official was awarded and paid a bonus. The State Audit Office of Latvia has concluded that the provisions of Section 21 of the Law on Disciplinary Liability of State Civil Servants, which stipulates that only a monthly salary and social guarantees shall be retained for a suspended official, was disrespected in this case.
The State Audit Office of Latvia considers that a correct expected action in this case would be to decide on the awarding (or non-awarding) of a bonus after the examination of the disciplinary case has been concluded and its results are clear. As a result of the disciplinary case, the official was found guilty of several disciplinary violations and a disciplinary penalty was imposed on him/her.
In addition, the audit found that the bonus was awarded to the official while referring to the annual performance evaluation. However, when the bonus was awarded, no annual performance evaluation for the previous working period, including 2023, was conducted. Therefore, one can consider that in the specific case (i.e., in February 2024), the bonus was paid to the official (1) also in violation of Part Two, Section 16 of the Law on Remuneration of Officials and Employees of State and Municipal Institutions and (2) for performance during the period when the official committed several disciplinary violations and for which a disciplinary penalty was imposed.
Calls for strict adherence to the procedure for awarding remuneration
The State Audit Office of Latvia calls on the Ministry of Transport and other state institutions to adhere strictly to the procedure set out in the law regarding the award of remuneration, especially in cases where a disciplinary case is being examined. Moreover, the State Audit Office of Latvia will call on the State Chancellery to assess the specific case and prevent the recurrence of similar irregularities in other state institutions.
Ref: the Annual report for 2024 of the Ministry of Transport
Following the conclusion of the audit by the State Audit Office of Latvia on the accuracy of the annual report for 2024, the Ministry of Transport filed a complaint in April 2025 by objecting to the conclusion of the State Audit Office regarding non-compliance with the legal framework in the case of bonus payment. The Council of the State Audit Office of Latvia considered this complaint in May 2025 by rejecting it in full and approved the audit report, including additional information regarding the procedure for bonus payment.
Given that the bonus was paid in violation of the legal framework, the State Audit Office of Latvia will decide on the initiation of the compensation proceedings for losses caused as a result of illegal actions. The Ministry of Transport must evaluate the actions of the responsible officials within six months and inform the State Audit Office about the results and measures to recover the illegally paid bonus. If this is not done, the State Audit Office of Latvia will use the rights provided for in the State Audit Office Law to decide on the recovery of losses.
Ref: financial audits
In April 2025, the State Audit Office of Latvia completed the 2024 financial audits of ministries and central government institutions. This is the last year when the State Audit Office of Latvia drafts 27 separate financial audit reports and opinions (14 ministries, 12 central government institutions and the annual consolidated financial statement of the State). From May 2025, the new approach to conducting financial audits will be fully implemented.
About the State Audit Office of Latvia
The State Audit Office of the Republic of Latvia is an independent, collegial supreme audit institution. The purpose of its activity is to find out whether the actions with the financial means and property of a public entity are legal, correct, useful and in line with public interests, as well as to provide recommendations for the elimination of discovered irregularities. The State Audit Office conducts audits in accordance with the International Standards of Supreme Audit Institutions of the International Organization of Supreme Audit Institutions INTOSAI (ISSAI), the recognition of which in Latvia is determined by the Auditor General. Upon discovering deficiencies, the State Audit Office of Latvia provides recommendations on resolving these issues and informs law enforcement authorities about any potential infringements of the law.
Additional information
Mr Aivis Majors
PR Specialist in Digital Content Development
of PR and Internal Communication Division
Ph: 23282284 | E-mail: Aivis.Majors@lrvk.gov.lv