Bribery Case: Court Overturns Verdict, Finds Ex-Executive Guilty

Latvian Railway Executive and Estonian Businessman Convicted in Bribery Case

A decade-long legal battle concluded on Monday with the conviction of Uģis Magonis, former chairman of the board of Latvijas dzelzceļš (Latvian Railways/LDz), and Estonian businessman Oļeg Ossinovski on charges of bribery. The case,one of Latvia’s most prominent and protracted legal proceedings,centered around allegations of illicit payments influencing a multi-million euro locomotive deal.

Did you know? – Latvia’s anti-corruption bureau, Korupcijas novēršanas un apkarošanas birojs (KNAB), initiated the investigation that ultimately led to thes convictions.KNAB has broad powers to investigate corruption offenses.

Origins of the Scandal

The investigation began in 2015, uncovering claims of bribery involving prominent businessmen and substantial sums of cash. Magonis was accused of accepting a €500,000 bribe from Estonian millionaire Oleg Ossinovski to secure a contract for a Latvian Railways subsidiary to purchase four used locomotives from Ossinovski’s company, Skinest, for several million euros.

Magonis, known for his lavish lifestyle – including a reportedly grandiose birthday festivity at Rundāle Palace – quickly became a focal point of public attention as the case unfolded. His subsequent fall from grace captivated the nation.

A Contentious legal Journey

Formal charges were filed in 2017 against both Magonis and Ossinovski, with both defendants maintaining their innocence. Prosecutors initially sought a four-year prison sentence for each man. However, the case took a winding path.

In 2021, the Vidzeme District Court acquitted both men, a decision that was instantly challenged by the prosecutor’s office. This appeal sent the case back to the courts for further review.

Pro tip: – appeals in Latvian courts are common. The prosecutor’s office can appeal acquittals, and defendants can appeal convictions, leading to multiple levels of judicial review.

Riga regional Court Delivers Verdict

The Riga Regional Court Criminal Court Panel, reviewing the case on appeal, determined that the prosecutor’s accusations were justified. The court found conclusive evidence that Magonis had accepted a substantial bribe from Ossinovski.

The Court of Appeal initially sentenced Magonis to three years in prison and Ossinovski to two years and ten months. However, acknowledging the excessive length of the proceedings and its impact on the defendants’ rights, the court adjusted the sentences. Magonis’s prison term was reduced to two years and six months, while Ossinovski received a fine of 151,700 euros in lieu of imprisonment.

Asset Forfeiture and Additional Penalties

Beyond the prison sentences and fines, the court imposed significant financial penalties. Magonis faced the confiscation of assets including a Mercedes-Benz vehicle, over 800,000 euros in cash, and three wristwatches. Ossinovski received a comparatively minor penalty: a three-year ban from participating in future

Reader question: – Do you think the length of this legal process impacted the severity of the final sentences? share your thoughts on the challenges of prosecuting complex corruption cases.

Despite the Court of Appeal’s ruling, the legal saga may not be over. The judgment remains subject to potential appeal to the Supreme Court of Latvia, leaving the final outcome uncertain.

Why it happened: Uģis Magonis, then chairman of Latvian Railways, accepted a €500,000 bribe from Estonian businessman Oļeg Ossinovski.
Who was involved: Uģis Magonis (former chairman of Latvian Railways),Oļeg Ossinovski (Estonian businessman),and Skinest (Ossinovski’s company).
What occurred: Ossinovski bribed Magonis to secure a contract for Skinest