Rīgas Satiksme managers are planning to save money mostly on various repairs, fixed assets, investments in information systems and other expenses. “That means that the subsidy needed from the local government will not be bigger than last year,” said Matīss.
In 2018, Rīgas Satiksme received €122 million in municipal subsidy. Together with allocations from the central government budget, the subsidies added up to more than €130 million.
Matīss promised that the company’s employees would not suffer from the cost saving measures and that their wage hikes have already been included in the budget. There is also no need for passengers to worry about an increase of public transport fares in Riga. “We will recommend specifying the prime cost of the transport fares, but this will only affect the subsidy,” Matīss said.
The cost saving plans have yet to be discussed with Riga Mayor Nils Ušakovs (Harmony) as head of the transport company’s owner, the city council.
As reported, the Corruption Prevention Bureau (KNAB) has launched a criminal probe over alleged corruption at Rīgas satiksme concerning procurement contracts worth hundreds of millions of euros.