Ex-head of Latvian Railway suspected of bribery

Latvian anticorruption watchdog said on Monday it is probing Ugis Magonis, the former CEO of Latvijas Dzelzcels (Latvian Railway), for taking a bribe of nearly 500,000 euros (550,750 U.S. dollars).

Representatives of the Corruption Prevention and Combating Bureau said evidence obtained so far suggested that Magonis had received the bribe in connection with a procurement arranged by LDz Ritosa Sastava Serviss, the railway company's subsidiary in charge of the maintenance of rolling stock.

The agency gave no further details, citing interests of the on-going investigation.

Anticorruption officers detained Magonis on Thursday last week after conducting a search at his workplace. Although they did not reveal the reasons for the arrest, Latvian Transport Minister Anrijs Matiss said it had something to do with a business deal.

On Friday, Magonis was sacked as head of Latvian Railway.

The online edition of Latvia's Diena daily reported that Magonis might have been arrested for taking a 500,000-euro bribe in exchange for greenlighting a multi-million deal in which LDz Ritosa Sastava Serviss purchased four old diesel engines from Skinest, a company owned by Estonian millionaire Oleg Ossinovsky.

Ossinovsky told Estonian media that the tender to supply the train engines was held in line with the rules and that all the parties concerned benefitted from the deal. The Estonian businessman denied he had bribed anybody.

Prior to his sacking, Magonis had been heading Latvijas Dzelzcels for nearly ten years, since 2005.