Latvian Railway CEO fired following arrest

Ugis Magonis was sacked as CEO of Latvijas Dzelzcels (Latvian Railway) on Friday after anti-corruption officers detained him on Thursday, the local media reported.

The decision to fire the Latvijas Dzelzcels CEO was made by the Latvian Transport Ministry as the shareholder of the state-owned railway company.

The ministry's representative Dzanita Innusa told journalists that Magonis has been removed from the position as he is currently unable to perform his office duties.

The railway company's management board, which now consists of three members, will carry on with their work as usual, said Innusa.

Latvian Transport Minister Anrijs Matiss said that officers of the Corruption Prevention and Combating Bureau searched Magonis' office on Thursday.

"As for the ministry, we will do everything to collaborate with the law enforcement authorities," the transport minister said, admitting that Magonis' arrest had come as a surprise.

The reasons for Magonis' arrest remain unclear for now. The anti-corruption bureau promised to give more details about the case later.

Magonis, who has been heading Latvijas Dzelzcels since 2005, has attracted the law enforcement authorities' attention already in the past.

In 2010, Corruption Prevention and Combating Bureau started an inquiry into a deal concluded by Latvijas Dzelzcels subsidiary LDz Cargo on suspicion that a firm owned by Magonis' girlfriend had made a profit with LDz Cargo.

Latvia's pietiek.com, a whistleblowing website, also reported in 2010 that the anti-corruption bureau once launched an investigation into Magonis' alleged money laundering.