Ministry turns to Prosecutor General over Rīga transport company losses

The Ministry of Environmental Protection and Regional Development (VARAM) said October 18 it was turning to the Prosecutor General's office to demand action because of "publicly disclosed information that Riga City Council (RD) officials do not plan to recover losses from former members of SIA Rīgas Satiksme (Riga Transport) board."

"Publicly available information suggests that audits conducted by Novius Attorneys at Law on Rigas Transport have identified a number of irregularities that may serve as a basis for pursuing a civil claim for damages against the former company's board of directors," the ministry said in a statement, arguing that current officials are "obliged under the Commercial Law to sue the members of the Management Board or Supervisory Council who have caused losses."

"Therefore, in the opinion of VARAM, if irregularities have been detected in the activities of the former members of the Management Board of Rīgas satiksme and they have caused significant financial damage to the company, including to the interests of Riga taxpayers, immediate redress should be sought from former board members."

As previously reported, Rigas Satiksme's previous board stepped down last December after the Corruption Prevention and Combating Bureau (KNAB) opened a criminal case on three allegedly rigged procurement tenders organized by the company. At the moment, Rigas Satiksme has a temporary board in place.

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