Ecology, Latvia, Markets and Companies

According to Tamuzs, Eco Baltia supervisory board made the decision after assessing the two Eco Baltia Vide management board members' conduct, violations of the company's articles of association and internal rules, as well as possible violations of the law.

Eco Baltia supervisory board has sent letters to Getlini EKO, the manager of Getlini landfill, CREB Riga and Clean R to warn them about possible serious complications in the public-private partnership procurement for Riga's waste management system, said Tamuzs.

Contracts signed with Getlini EKO and Clean R following Getlini EKO's procurement tender, as well as the appointment of Simanovics to the management board of Eco Baltia Vide were all done in violation of the articles of association of Eco Baltia Vide, Eco Baltia and Eco Baltia Grupa, namely, the part thereof that dealt with the procedure for adopting important decisions at these companies, explained Tamuzs.

Tamuzs says he had to point these problems out to the potential cooperation partners, taking into consideration that, if investigation produces conclusive evidence that the suspected violations have indeed taken place, this may cause long-term consequences and the legality of the documents signed by the two management board members may be contested.

Simanovics and Aizbalts have signed procurement documents on behalf of Eco Baltia Vide without Eco Baltia supervisory board's consent and contrary to the past decisions of the supervisory board, said Tamuzs.

Simanovics and Aizbalts' actions are now being analyzed and corruption is not ruled out, said Tamuzs, adding that the law enforcement authorities would also be involved in the investigation.

Eco Baltia Grupa's marketing and communications manager Armands Utinans told LETA that neither Eco Baltia Vide nor Eco Baltia Grupa management boards had received information about the supervisory board's decision and no official documents confirming it. Eco Baltia Vide management board, which consists of Simanovics and Aizbalts, continues operations as per usual, said Utinans.

Getlini EKO on May 10 announced that it would sign EUR 686.3 mln contract with CREB Riga on management of Riga's waste system for the next twenty years.

CREB Riga is a joint venture set up by Clean R and Eco Baltia Vide, which own, respectively, 20% and 80% of CREB Riga's shares.

Tamuzs, chairman of Eco Baltia supervisory board, owns 16.68% of the company's shares. Simanovs owns as many shares in the company and is the head of Eco Baltia's company Eco Baltia Grupa, which in turn owns Eco Baltia Vide.

As reported, the Corruption Prevention Bureau has asked the Prosecutor's Office to charge Saeima member Atis Zakatistovs (KPV LV) and businessman Viesturs Tamuzs with large-scale organized fraud.