Crafty bankruptcy administrators a threat, says PM

Dishonest dealings by state-appointed bankruptcy administrators can unfavorably impact the business climate in Latvia, therefore the resolution of the issue needs urgent attention, Prime Minister Laimdota Straujuma told the media Wednesday.

She said the problems in the sector had existed for a long time and “that it cannot be left unresolved.”

On his part Justice Minister Gaidis Bērziņš proposed a unified supervisory department to help combat possible improprieties allowed by devious insolvency functionaries, expressing hope that amendments to the Law on Bankruptcy could be moved through the Saeima agenda before the elections.

Commercial Banking Assocation president Mārtiņš Bičevskis concurred it was important for all responsible agencies to get involved in the solution.

As reported, in a recent case alleging dishonest dealings by a bankruptcy administrator, a court froze the assets of media group Cits Medijs, which publishes hard-hitting investigative and analytic news weekly Ir, prompting widespread public outrage.

Current legislation provides broad authority to bankruptcy administrators, yet few checks and balances to ensure adequate training, certification and control over the legality of their activities and dealings.

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Economy
Economy