NA has appealed to the court against KNAB’s decision to suspend state funding

The hearing date is currently unknown.

Earlier, Saeima Jānis Grasbergs (NA) member stressed that the party disagreed with KNAB’s explanation because no expenditure group spent more than 60% of the state allocated funds.

On May 28, the KNAB reportedly made a decision ordering the party to return 210,673 euros of illegally used state budget funds to the state budget.

The decision was made because the party used 554,627 euros of state budget funds for communication with society and political agitation in 2022, thereby exceeding the 210,673 euros limit on the percentage of state budget funds that can be used for a certain purpose set for the party in the Act on the Financing of Political Organizations (Political Parties).

On the other hand, on June 11, KNAB made a decision to suspend the payment of state budget funds to the party for one year.

KNAB did not pay 376,003 euros in July this year. On the other hand, the next amount that will not be paid to the party in January 2025 will vary depending on the results of this year’s European Parliament elections and possible changes in the amount of the minimum monthly salary next year. KNAB will be able to calculate the exact amount no earlier than the end of this year.

Previously, the KNAB had no information on whether the party exercised its right to appeal against the two decisions made by the agency. A possible appeal will not prevent the implementation of the KNAB’s decision on the suspension of state budget funds.

Ir magazine reported in May that taxpayers spend litigation money every year to ensure the financial independence of the parties, but the money has strict rules. Political parties can only use state funds for three purposes: maintaining office, substantive work of the party, and political agitation or communication with society. The magazine said that more than 60% of state funds may not be used for any expenditure category.

The NA exceeded this limit precisely, spending almost €555,000 on the 2022 campaign, despite the limit being €344,000. In that year, the NA received a total of €573,000 from the state, but spent more because the balance from the previous year was €183,000. According to the magazine, parties can use the allocated state funds within three years of receiving it, otherwise they must repay it.

An administrative fine of 7,000 euros was also initially imposed on NA, but the party appealed and the head of the KNAB annulled the decision because the statute of limitations for initiating administrative proceedings had expired, Ir reported.