Latvia, Railways, Transport

“All the necessary information has been submitted to the supervisory board. As far as I know, the supervisory board has been meeting and requesting information from members of the management board. The supervisory board is working and is now expected to take a weighed decision,” Linkaits said, adding that the supervisory board might take the decision after May 20.

“I have made myself clear. Given the information at my disposal, there could be no other options… I believe that the supervisory board will take the right decision,” the minister said, admitting at the same time that Latvia is a democratic country and the company’s supervisory board can still decide otherwise.

Linkaits indicated that the current LDz supervisory board includes two members with certain connections in the Transport Ministry and one independent member.

As reported, on May 7 Linkaits expressed no-confidence in LDz CEO Edvins Berzins and two other members of the LDz management board - Aivars Straksas, and Ainis Sturmanis - and will urge the company’s supervisory board to remove them from their positions.

The minister informed that his criticism is mainly related to suspected crippling of competition, which can result in grave consequences both for LDz and Latvia. The minister has also obtained information about allegedly corruptive deals. This information has been forwarded to the Corruption Prevention Bureau (KNAB). An examination of several costly transactions, including marketing and advertising agreements, has revealed mismanagement on the part of the rail company’s executives, Linkaits said.

On May 10, members of the LDz management board alleged that Linkaits’ statements about the company’s management are aimed at paving the way for the national rail company’s privatization.

The LDz supervisory board includes chairman Janis Lange and board members Andris Maldups and Aigars Laizans.

Latvijas Dzelzcels is a fully state-owned enterprise managing public railway infrastructure. It is the leading company of the LDz Group, which includes six subsidiaries.