Rīgas Satiksme to claim over €5m from firms involved in corruption scandal

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Rīgas Satiksme municipal transport company plans to claim over €5 million from the Czech company Skoda for a failure to deliver transport vehicles on time, Rīgas Satiksme acting CEO Anrijs Matīss told LETA.

He said that Rīgas Satiksme together with Ernst & Young Baltic auditors is currently examining the procurement deals featuring in the company’s corruption scandal. It has been established that Rīgas Satiksme might be able to claim at least €5 million in contractual fines. Rīgas Satiksme has only received 54 of the 100 trolleybuses and seven of the 20 trams the Czech company was supposed to deliver.

“Both tenders have been concluded but the transport vehicles have not been delivered, and the contracts include penalties for a failure to meet the contract terms. It is already clear at this point that we will be able to claim more than €5 million,” Matīss said.

Meanwhile, a procurement deal in which Rīgas Satiksme is buying 175 passenger buses from Poland’s Solaris Urbino is still being analyzed. To date, Rīgas Satiksme has received 140 of these vehicles. The terms of this deal allowed for increasing the number of buses by 30 percent, which the previous Rīgas Satiksme management did, extending the delivery deadline to 2020. “However, here too several deadlines have been missed, so there will be contractual penalties,” Matīss said.

He said it was “very strange” that the former Rīgas Satiksme management did not demand the contractual penalties as the delays had been obvious.

It has also been established during the audit that Rīgas Satiksme had paid around €5 million in advance for the still undelivered transport vehicles. This money can still be recovered, Matīss said.

As reported, the criminal probe started by the Corruption Prevention and Combating Bureau (KNAB) against Rīgas Satiksme is related to three tenders, worth several hundred millions of euros, organized by the municipal transport company.

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