Airport, Corruption, Latvia, Legislation, Transport

Andris Liepins.

"The supervisory board decided to suspend to members fo the management board. Liepins and Upenieks," he said.

The decision has to be approved by the shareholders meeting, Kanels said.

The Latvian public television reports on Thursday that an internal audit had been conducted at the airport, revealing mismanagement of funds.

The audit report points to several violations, for instance, a EUR 700,000 contract the airport concluded this spring with Velve construction firm whose former board member Ilmars Upenieks is now a member of the airport’s management board.

The audit also implicates the airport’s other board member Andris Lapins in causing a conflict of interest, as the airport’s board awarded a EUR 7,000 contract to the Latvian Aviation Association, commissioning a study on the Latvian aviation sector’s impact on the economy. Liepins is the chairman of the association.

The Transport Ministry said it had received the report and forwarded it to the airport’s supervisory board, which is expected to provide its conclusions by the end of June.