Latvia, Legislation, Transport

International Internet Magazine. Baltic States news & analytics Wednesday, 21.08.2019, 00:28

Shareholder is not helping to solve situation at Rigas Satiksme – Matiss

BC, Riga, 05.03.2019.Print version
Anrijs Mariss, the acting head of Rigas Satiksme municipal public transport company, is stepping from from the office because the Riga City Council is not helping in solving the company’s problems, informed LETA.

Matiss told LETA that there is support from the local government needed in revising the prime costs of fares, the routes of Rigas Satiksme and Rigas Mikroautobusu Satiksme (RMS) mini bus service and other practical issues.

“Many issues are not for Rigas Satiksme to decide,” said Matiss. He also said that the problems uncovered by auditors should be tackled, but the shareholder threw back the auditors’ report and said that we should work on proposals on our own. “We have no support in reducing costs, revising contracts, and these are issues the company may not solve by itself. The shareholder also should enforce loss from former border,” said Matiss.

Matiss said that Rigas Satiksme is a very good company and its problems can be solved by “revising all matters that have been done wrong in the past years,” but it can be done only hand in hand with the local government.

Last week Riga Mayor Nils Usakovs (Harmony) said that the Riga City Council will allocate EUR 130 mln in subsidies to Rigas Satiksme, which should be enough to avoid insolvency. Matiss said then that the sum is sufficient.

“However, if the planned optimization measures are postponed, then additional financing will be necessary this year. For example, by revising the contract with RMS, we planned to save EUR 350,000 a month, and it has been included in the calculations when requiring the subsidies. If these measures are postponed, we will need more funding,” said Matiss.

As reported, in December 2018, Usakovs appointed a temporary board for Rigas Satiksme as the previous board stepped down in the shadow of a corruption scandal in the company. The temporary board consised of three members for the company: former Transport Minister Anrijs Matiss who was appointed the head of the temporary board, as well as Edmunds Zivtins, head of the Rigas Satiksme's Transport and Organizational Department, and Janis Gedusevs, head of the company's security and risk management department.


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