Construction, Latvia, Legislation, Lithuania, Port
International Internet Magazine. Baltic States news & analytics
Wednesday, 01.05.2024, 23:50
Corruption Prevention Bureau conducts searches at BMGS construction company and its CEO's home
Print version |
|---|
“A search was conducted yesterday, but there cannot be any
objective reason for it. There is no information about the details, except that
the local institution had received a request from Lithuania,” Afanasejva said,
adding that BMGS is operating in several countries in compliance with the laws
of each particular country and the European Union, as well as business ethics.
Commenting on the situation, Afanasjeva said that when it
applied for participation in a tender to reconstruct embankments at the
Lithuanian Port of Klaipeda, BMGS picked a partner with whom a consortium was
established in order to meet the client’s qualification requirements. “All bids
are being made on in the name of the consortium. The other member of the
consortium is Lithuanian company Hidrostatyba,
which is not our rival,” the BMGS CEO
explained.
As reported, officers from the Klaipeda department of the
Lithuanian Special Investigation Service raided a Lithuanian construction firm
on Tuesday as part of an international pre-trial investigation into suspected
public procurement fraud.
The Special Investigation Service said that it was
investigating the case in collaboration with the Latvian Corruption Prevention
Bureau (KNAB) whose employees searched the home and office of a Latvian
construction company’s CEO, a woman identified a S.A. The Latvian company, just
like the Lithuanian firm, is involved in construction and renovation projects.
The law enforcement authorities suspect the above companies
of entering an illegal agreement on terms for participation in public tenders.
It is thought that by coordinating their actions the two companies won a
contract whose value was increased by more than EUR 3 mln.
In March 2017, Lithuanian builder Hidrostatyba and Latvia’s BMGS
won a EUR 14.837 mln tender to reconstruct the embankments used by Vakaru Laivu Gamykla (Western Shipyard,
or VLG), a Lithuanian shipbuilding
and repairing group controlled by Estonia's BLRT Grupp.
According to information from Firmas.lv, BMGS, established in 1993, closed 2015 with EUR 56.711 mln in turnover, down 43% from a year before. The company’s 2015 profit grew 2%
y-o-y to EUR 1.042 mln. Financial results for 2016 are not
yet available.
«The Baltic Course» Is Sold and Stays in Business!
