Latvia Prison Stores: New Operator Linked to Previous Controversies & Smuggling Ring

The Latvian prison system is undergoing a shift in retail management, with a new company, “Bauskas tirgotājs” (“Bauska Trader”), taking over supply to prison stores. This change follows a decision by the Ministry of Justice to remove “Lenoka,” the previous supplier, due to its links to Aleksandrs Babenko, who is currently on trial in connection with the murder of legal administrator Mārtiņš Bunkus. However, scrutiny reveals close ties between the new and former suppliers, raising questions about whether the change is merely cosmetic.

The transition comes after a significant seizure of contraband at Riga Central Prison in February. A routine inspection of dairy product deliveries uncovered nearly 50 mobile phones, SIM cards, charging cables, 7 liters of suspected alcohol, and perfume – concealed within the packaging. This incident, as reported by Latvian Television’s “de facto” program, highlighted the sophistication of smuggling attempts into correctional facilities.

A New Supplier, Familiar Connections

The Ministry of Justice initiated a new tender process, ultimately awarding the contract to “Bauskas tirgotājs.” Although seemingly a fresh start, investigations reveal a strong connection to the outgoing supplier. “Bauskas tirgotājs” is 96.46% owned by “Baltstor,” a company registered at the same address as “Lenoka” in Riga, Krustpils Street 12. “Baltstor” lists “Mego” and “Vesko” as its primary partners – and “Mego” is the parent company of “Lenoka.”

“Baltstor” has acknowledged its partnership with “Lenoka,” stating that the latter provides it with procurement services. The company assures that “Bauskas tirgotājs” will adhere to all requirements outlined in the tender documentation to prevent contraband from reaching inmates. The Ministry of Justice has accepted the outcome of the tender, noting that the link to Babenko is less direct than in the case of “Lenoka.”

The Babenko Link and Previous Disqualification

“Lenoka” had initially won the tender in 2024, securing a five-year contract. However, the Ministry of Justice overturned the decision, citing reputational and security risks associated with a company linked to a person accused of a serious crime. This decision stemmed from concerns about informal hierarchies within prisons, as highlighted in a case brought before the European Court of Human Rights, and reports from the European Committee for the Prevention of Torture, which noted that contraband often enters prisons concealed within deliveries. Latvia’s State Security Service also flagged the potential security risks.

Until 2024, Aleksandrs Babenko was listed as the beneficial owner of both “Mego” and “Lenoka.” His son, Artjoms Babenko, briefly held the position before being arrested on suspicion of preparing a murder of a police officer. Currently, Aleksejs Babenko is listed as the beneficial owner of several firms associated with the retail operations.

“Lenoka” contested the Ministry’s decision in court, arguing that the State Secretary had exceeded his authority and that the decision was based solely on assumptions about future risks. The case remains pending.

How the Prison Retail System Works

The process of supplying goods to Latvian prisons involves a tender process overseen by the State Penitentiary Administration (IeVP). Companies bid for the right to rent space within prison facilities to operate retail outlets. The Ministry of Justice has the authority to review and overturn decisions made during this process, particularly when security concerns are raised. The current system, officials said, is under review with plans to explore new approaches, including online ordering, by September 2026.

Contraband Concerns and Security Measures

The discovery of contraband at Riga Central Prison underscores the ongoing challenges faced by the IeVP in preventing illicit items from entering correctional facilities. The administration employs various measures, including inspections of deliveries, regular searches of cells, and aerial monitoring of prison grounds. Recent amendments to the Criminal Code have also increased penalties for smuggling contraband into prisons. The Ministry of Justice acknowledges that the current system has shortcomings and is working on reforms to enhance competition and security.

The Ministry of Justice said that while formal grounds for rejecting a bidder were lacking, they are not entirely satisfied with the current organization of prison retail, even from a legal standpoint. They plan to develop a new proposal by September 2026.

The situation highlights the complexities of managing retail operations within a secure environment and the ongoing need to balance commercial interests with security concerns. The shift from “Lenoka” to “Bauskas tirgotājs” may represent a change in name, but the underlying connections raise questions about the effectiveness of the reforms.

You can uncover more information about the Ministry of Justice here.