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Grybauskaite: Lithuanian Railways act like a state within a state

BC, Vilnius, 23.07.2015.Print version
State company Lithuanian Railways (Lietuvos gelezinkeliai), whose 100 percent of shares belong to the Ministry of Transport and Communications, is acting like a state within a state. Such lawlessness and irresponsibility of the company can cost very dearly to all of us, said Lithuanian President Dalia Grybauskaite after a meeting with Transport and Communications Minister Rimantas Sinkevicius, cites LETA/ELTA.

According to the president, since the company refuses to reconstruct a railway track between Bugeniai (Lithuania) and Renge (Latvia), the European Commission back in 2013 launched an investigation into the situation, as a result of which the company may face fines seeking tens of millions of euros, while the reconstruction of the railway track would be three times cheaper.

 

What is more, Grybauskaite says, Lithuanian Railways is also responsible for the implementation of the Rail Baltica 2 project. The president says that Lithuania did not receive more than half of the money it had asked from the Connecting Europe Facility fund due to the irresponsible attitude of Lithuanian Railways and poorly prepared applications.

 

The head of state emphasised that cooperation with the European Commission must be closer. Lithuania still has an opportunity to receive funding from the fund during the second call for proposals in the autumn. She says the Ministry must responsibly formulate and implement Lithuania's transport policy and responsibly manage state enterprises.

 

Daiva Ulbinaite, Chief Advisor to the President, said that 12 state enterprises that are important from the strategic and economic point of view are operating under the Ministry. Revenue of most of these companies is decreasing as is payment of dividends to the state budget. What is more, independent members may be appointed to boards of these companies, but for some reason this is not being done.

 

According to the president, people who are able to run such companies must be responsibly selected to management and supervisory boards, but not random people, those who have particular interests or are members of parties. The president says that management of state enterprises must be urgently made more transparent, efficient and depoliticised. Otherwise lawlessness gets the upper hand and this may undermine the country's economy, image and security.

 

Transport and Communications Minister Rimantas Sinkevicius said he felt responsible both for this and other companies. However, he denied that the heads of Lithuanian Railways were delegated based on party membership.






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