Financial Services, Latvia, Legislation, Transport

Former acting head of Rigas Satiksme board Anrijs Matiss pointed at the unreasonably high expenses for operations of the e-ticket system, following the audit conducted by Ernst&Young.

According to Rigas Satiksme data, since 2008, the company has paid EUR 216 million, including value added tax (VAT) to Rigas Karte for its services. Rigas Karte not only operates the e-ticket system for public transport, but also car park systems and terminals at school canteens.

There is a discrepancy between the turnover of Rigas Karte and the sums paid to Rigas Karte by Rigas Satiksme. In the time period between 2009 and 2017, the difference amounts to EUR 20 mln, while the companies are not able to explain it.

In 2009 Rigas Satiksme has paid EUR 5.87 mln, excluding VAT, for services of Rigas Karte, in 2014 the sum reached EUR 10.24 mln, and in 2018 – EUR 14.75 mln. Even though the number of passengers keeps declining, Rigas Karte’s profit is rising.

Revenue from public transport fares in 2018 amounted to EUR 45.2 mln, while Rigas Satiksme paid one third of EUR 14.75 mln for maintenance of the e-ticket system.