Financial Services, Latvia, Legislation, Society, Transport

The decision has been based on findings provided by Ernst & Young Baltic auditors, as well as Novius and BDO Latvija law firms.

The Rigas Satiksme shareholders at a meeting on Thursday gave the company's supervisory board three months to prepare legal action against the company's former executives. The supervisory board is expected to assess available information, estimate the losses caused to Rigas Satiksme, as well as determine the persons who should be sued over these losses.

Ainars Ozols, chairman of Rigas Satiksme supervisory board, told LETA that the board has indeed committed to preparing the lawsuit in three months and calculating the exact loss the transport company has suffered as a result of mismanagement.

Ozols was positive that the lawsuit will be prepared as planned.

"I believe that in the end it will be up to the court to decide whether there were grounds for the lawsuit or not, but judging from the materials in our disposal we see that there are reasons to take legal action," Ozols said. He could not give the exact sum that could be claimed from the former Rigas Satiksme executives.

Calls for legal action against the transport company's former executives were made after the entire Rigas Satiksme management board resigned in 2018 amid a scandal over three transport vehicle tenders.

A subsequent audit discovered systematic mismanagement and wastefulness on the part of the Rigas Satiksme managers.