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International Internet Magazine. Baltic States news & analytics Saturday, 04.12.2021, 07:39

Tet CEO Gulbis loses his job

BC, Riga , 04.12.2020.Print version
Shareholders of Latvian telecommunications company Tet have decided to dismiss Juris Gulbis as chairman of the company's management board, LETA was told at the company.

Tet representatives indicated that although no violations were found on Gulbis' part, the Tet supervisory board and shareholders realize that the fact that Gulbis is facing criminal charges in connection with the so-called digital TV case is casting a shadow on the company's impeccable reputation and poses long-term reputational risks for the company's future value. Tet shareholders therefore decided to recall Gulbis from the Tet management board, which means that Gulbis loses also his job as the company's CEO.


The decision is effective as of Friday, December 4.


A meeting of Tet shareholders assessed the situation in connection with the charges brought against Gulbis and four other persons. At Telia Company's proposal, the Tet supervisory board had unanimously decided to hire an independent international company to examine Gulbis' activities relating to a tender that was held 12 years ago to launch digital terrestrial television service in Latvia and the following awarding of contracts to infrastructure providers.


During the examination, the independent international company found no evidence to suggest that any current or former Tet employees had been involved in malicious or improper activities. The company based its findings on the materials it analyzed as part of the inquiry, as well as interviews.


Upon studying the findings of the independent inquiry and after several days of discussions, the Tet supervisory board informed representatives of the company's shareholders that the chairman of the Tet management board and CEO, as well as the company's legal director still have the supervisory board's trust.

 

However, considering the reputational risks, it was decided to recall Gulbis from the Tet board. 


The Tet supervisory board will shortly start a selection procedure to pick a new chairman of the management board and CEO for the company. In the meantime, Tet CTO Uldis Tatarcuks has been appointed acting CEO and chairman of the Tet management board.


As reported, the Prosecutor's Office has charged Juris Gulbis, Chairman of the Board of SIA Tet, and four other persons of possible participation in fraud in the introduction of digital television, estimating the damage caused to the company in the amount of EUR 7,585,533 euros, TV3's investigative news program Neka Personiga reported in October.


According to the case, the successor of Kempmayer, Hannu Digital, was fraudulently involved in the digital television project and Gulbis misused the trust of the owners and council of Lattelecom (now Tet).


As Tet informed LETA, Gulbis categorically denies the accusations. "I categorically and completely reject the allegations made against me. We are ready to defend and substantiate every decision made by the company. Our priority has always been the development of the company in a purely legal manner," said Gulbis.


Gulbis was not immediately removed from his position at the company, but the company's supervisory board hired criminal experts to investigate the crimes allegedly committed by Gulbis and the other employees.


According to Gatis Kokins, the chairman of the company's supervisory board, if the opinion of the experts testifies to criminal intentions, goals and actions, "then undoubtedly our decision will be very categorical and rapid", but until then, the council will not remove Gulbis from his position at the company.






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