Back to list Print 18. Mar. 2019

Information of the Board of "Rigas satiksme” regarding events relevant to the capital company (11 – 17 March)

On 11 March, the Board of RP SIA “Rigas satiksme” met with the Riga City Council's management to discuss the most urgent works and activities. The Board provided information on the options for budget optimization and the plans for the transformation of the route network.

On 12 March, the management of the Riga City Council (N. Usakovs, O. Burovs), with participation of the Board of RP SIA "Rigas satiksme”, as well as the management of the responsible sectoral departments of the Riga City Council (I. Tiknuse, A. Rimicane etc.), met with creditors' representatives. Although the owner – the Riga City Municipality – has ensured the financial stability of the capital company and the meetings have taken place in a generally positive climate, creditors' representatives expressed dissatisfaction regarding the failure to respect the principles of corporate governance, risk policy management and risks of corruption, as well as decisions related to the process of setting up the board of the capital company and the council. Creditors were offered to delegate representatives to observe the process of selecting a new board and council of the capital company. The Board of RP SIA “Rigas satiksme” apologises for the rush in which the meeting was organised and will continue to seek to ensure that the information needed for decision-making is circulated in the daily rhythms. The capital company receives an additional compensation payment of EUR 8 351 166 from the Riga City Municipality for the provision of public transport services.

The Board members of RP SIA “Rigas satiksme” Dr iur. E. Saulitis and J. Meirans met on 13 March with PS “Rigas mikroautobusu satiksme” (RMS) to discuss solutions to improve the management of the microbus network and passenger traffic. Negotiations are in the early stages, so it is not yet possible to provide information on specific solutions. Information about A. Brandavs’s resignation from the position a member of the Board in the commercial company is received from SIA “Rigas karte” and also a request to transfer the meeting of the members of “Rigas karte” to 9 April of this year.

At the meeting of the Board of RP SIA “Rigas satiksme” on 14 March, a timetable for the implementation of the recommendations contained in the opinion of the auditing company “Ernst & Young Baltic” was considered and approved, the first phase of which is expected to be completed by 1 May of this year. Decisions are made regarding the procurement of services needed to implement recommendations, as well as the legal services needed in connection with the audit of SIA “Rigas karte”, the evaluation of other contracts and the responsibility of the former board of the capital company.

The member of the Board that is responsible for the development of the capital company A. Kruze along with the Riga City Council’s Chairman N. Usakovs meets with Transport Minister T. Linkaitis to discuss the situation with RP SIA “Rigas satiksme”, the Skanstes tram line project and the construction of Rail Baltic. The Riga City Municipality certifies that the realisation of the projects indicated is essential for the development of the city and is prepared to cooperate with the Ministry of Transport.

According to the invitation of the Riga City Council’s Chairman N. Usakovs, on 15 March, a meeting was held with the Board members of RP SIA “Rigas satiksme” to discuss topical issues related to measures of optimising the budget and cooperation with RMS.

On 15 March, the Transport Department of the Riga City Council held a meeting of the project management group on the organisation of the public consultation process on the construction of the planned “Construction of a new tram infrastructure phase and reconstruction of the existing tram line, round 1, 2 and 3”. Given the importance of this intention for the development of the capital company, on which the successful realisation of the large project “Riga tram infrastructure development” of the Cohesion Fund depends, the Board member of RP SIA “Rigas satiksme” A. Kruze took part in it. The construction of the Skanstes tram line has been included in the Riga City Development Plan since 2005, when the Riga spatial plan was approved for 2005 – 2018. The presentation of the public discussion of the construction plan will take place on 26 March at Riga City Council’s Hall, and the event is expected to be of great public interest.

On 18 March, RP SIA “Rigas satiksme” has scheduled a meeting with Mr. Zdenek Majer, the Vice-President of “Škoda Transportation”, to discuss issues related to future business cooperation.

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