I'm sure it's not intentional - infact I think it's rather easy to
guess why it does this:
Google Translate uses a statistical (machine-learning) approach to
translation. The translation software automatically creates
translation rules from examples, rather than programmers coding lots
of rules by hand.
If it's given lots of examples where the words "Valsts prezidenta"
followed by two words that aren't in it's dictionary, are all
translated to "State president Vaira Vike-Freiberga", then when it's
asked to translate "Valsts prezidenta Valda Zatlera", it would
naturally guess it to be "State president Vaira Vike-Freiberga".
have you guys used the "report this to google" thing yet to tell them
about this error?