Environment Ministry wants Ušakovs to report on Rīgas satiksme

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The Environment Ministry is asking Rīga Mayor Nils Ušakovs (Harmony), the person in charge of Riga municipal public transport company Rīgas satiksme's share capital, to inform the ministry about how the company is being managed, the ministry told LETA.

The ministry wants Ušakovs to report on how he manages Rīgas satiksme's operations and what internal control mechanisms have been introduced at the company. Ušakovs has to explain why Rīgas satiksme's articles of organization are not in line with the regulations, report on the company's financial situation, properties used as securities to take out loans - and what financial risks they carry should the company be unable to meet its debt obligations, procurement control procedures at the company, and measures against corruption.

"During the initial inspection, the ministry established problems in supervision of Rīgas satiksme's operations, which is why we have asked for additional information on the company's management and financial situation. We expect Rīgas satiksme to reply our questions in two weeks," said Environmental Protection and Regional Development Minister Juris Pūce (For Development/For).

Rigas Satiksme, a municipal company, is responsible to the Rīga City Council, which is therefore in charge of the company's operations.

As reported, the Corruption Prevention and Combating Bureau has started a criminal case on three procurement tenders organized by Rīgas satiksme: a 2016 tender to buy low-floor trams for a total of €62,597,477, a 2013 tender to buy trolley-buses for a total of €131,646,135, and another 2013 tender to buy buses worth €75,808,297.

The criminal procedure investigates bribery and money laundering in relation to these procurement tenders.

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