Latvia, Railways, Transport
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Friday, 19.04.2024, 09:12
Latvijas Dzelzcels supervisory board again defers decision on management reshuffle
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As reported, Transport Minister Talis Linkaits (New Conservative Party, JKP) on May 7 expressed no confidence in Berzins, Straksas and Sturmanis, urging the company’s supervisory board to sack the three executives.
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.
The LDz executives responded by claiming that Linkaits’ allegations are aimed at preparing the state-owned rail company for privatization.
Furthermore, Berzins and Straksas have asked the State Police to start criminal proceedings against Linkaits over defamation.
“By spreading declarative allegations unsubstantiated by any evidence and publicly making defamatory claims over the past month, Linkaits has significantly undermined the reputation of LDz management and the whole LDz group, causing suspicions in the public that my colleague Aivars Straksas and other managers mentioned by Linkaits have plotted to commit criminal offenses, which has seriously harmed the reputation of LDz group as a reliable partner in regional and international markets,” Berzins told LETA.
After the transport minister’s public claims of possible criminal activities in LDz, Berzins asked the Corruption Prevention Bureau (KNAB) to provide information on any facts that might confirm Linkaits’ allegations. “I have received compelling information that KNAB has no facts about my or Straksas’ involvement in any corruptive activities,” said Berzins.
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.
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