In late 2024, the Latvian Competition Authority (KP) launched an investigation into potential violations related to prohibited agreements among several construction companies participating in public procurements for heating network construction and repairs by Rīgas Siltums. The investigation revealed that from 2016 to 2022, there was a closed circle of bidders who submitted offers and won contracts in a rotating manner, both individually and in partnerships.

Following changes in Rīgas Siltums' management in 2022, the pool of bidders began to gradually expand. After the initiation of the investigation and subsequent procedural actions by the KP, Rīgas Siltums took proactive steps to improve the procurement environment by starting an internal compliance review. Significant changes also occurred in the management of Rīgas Siltums, including the departure of long-time board member Uģis Osis and the head of the heating network department, Jānis Mezītis.

According to Ieva Šmite, acting chair of the KP, the investigation highlighted significant issues with the procurement documentation of public service providers, which is not published in the Electronic Procurement System, hindering effective oversight by competent authorities. The investigation emphasizes the crucial role of the contracting authority in ensuring fair competition, as they are the first to identify potential risks of unauthorized cooperation among bidders and take timely action to prevent it.

Contracting authorities are urged to promote genuine competition in their procurements, which includes conducting fair pre-procurement studies and identifying market participants suitable for the procurement subject. This is essential for the responsible and lawful management of public funds, in accordance with the law on preventing the misuse of public financial resources and property.

On October 24, 2024, the KP initiated the investigation based on information received from the Corruption Prevention and Combating Bureau regarding potential violations of competition law by several limited liability companies involved in the public procurements of Rīgas Siltums. During the investigation, the KP conducted procedural actions at the legal and actual addresses of the involved parties, obtaining electronic information from their work computers and mobile phones, as well as verbal explanations.

After evaluating the information obtained from the procedural actions, the KP concluded that the evidence was insufficient to establish a violation by the involved parties in the public procurements, leading to the decision to terminate the investigation.