Legislation, Lithuania, Port, Transport

The biggest land rent debtors to the Port Authority was Klaipeda Stevedoring Company (KLASCO). Port Authority computational KLASCO debt amounted to LTL 2 million 578 thousand (EUR 746, 4 thousand), writes LETA/ELTA.

The Port Authority had two cases in a court with this company. In one case, the Klaipeda Regional Court ordered that KLASCO has to pay LTL 770 thousand (EUR 223 thousand) ground rent to the Port Authority, and with interest, agency costs and the amount of tax revenue the sum increased by over LTL 1 million (EUR 0.3 million). However, KLASCO appealed the verdict and disputes continued.

Disputes broke out on the way that the lengths of berths have to be counted and the calculation of rent for the land had to be taken into account that the embankments and the actual design load varies. 7-9 berths were built with faulty and therefore KLASCO could not use them properly and refused to pay the bigger rent.

The Port Authority dispute with KLASCO about loading berths also appears in other legal proceedings. The Port Authority after the State Audit Court has applied to adjudge LTL 1 million 807 thousand (EUR 523, 2 thousand). However, Klaipeda district court ordered KLASCO to pay only LTL 646 thousand (EUR 187 thousand). In this case, the decision was appealed by the Authority itself.

The most hopeless debtor is the company Klaipeda Hidrotechnika. It had not only LTL 514 thousand (EUR 148.8 thousand) debt for land rent at the beginning of this year, but also the stack of losing lawsuits to Port Authority.

Directorate has had over 10 legal episodes with Klaipeda Hidrotechnika, during which they adjudged or still are at suiting on the amount reaching over LTL 13.7 million (EUR 4 million). This amount includes the penalties for a range of outstanding work in the port, the loss of a backlog of work, interest, the amount of defects 68 and 142 berths and litigation costs.

Klaipeda State Seaport Authority Director Eugenijus Gentvilas repeatedly said that the amount of claims to Klaipeda Hidrotechnika would be even higher, but the Authority is unable to spend money on the courts, because it is not expected to recover the funds.

Klaipeda Hidrotechnika is actually insolvent company and for this company is initiated bankruptcy proceeding. Therefore, there is more rational to set forth the requirements to Klaipeda Hidrotechnika in bankruptcy case not having additional costs, " – says the Klaipeda State Seaport Authority, in the 2011 activity report.

Although severely financially hard hit, Klaipeda Hidrotechnika does not intend to comply with the Port Authority, which they accuse for ruined its business. At the beginning of 2011 Klaipeda Hidrotechnika had been made a claim of the Port Authority for LTL 9 million 655 thousand (EUR 2.8 million). At the end of the year 2011 this figure had increased to LTL 10 million 905 thousand (EUR 3.16 million). It is predicted that the Port Authority and Klaipeda Hidrotechnika's courts will continue for many years. Some believe that the changes of political power in Lithuania and in the port, Klaipeda Hidrotechnika can rise like a phoenix from the ashes.

In proceedings with the Port Authority participated but to remain undefined people who were its staff, said the fighting in a court with the rich and influential authority is not easy. Most frightening is that almost all cases of the contracted works and tendering the Port Authority has won over the past few years. Almost all of the former Port Authority employee disputes ended with the peace agreement.

There is not anything surprising that the Administration fights against Klaipeda Hidrotechnika. It has no longer what to lose. In addition, Klaipeda Hidrotechnika has always had "a truth searches" trial especially when it was not the first getting the contract.

The judicial dispute with the Port Authority the company Gargzdai Hidrostatyba has also occurred. For the repairing 62 quay, the Port Authority did not pay.

Eugenijus Gentvilas repeatedly explained that the additional works were carried out without public procurement procedures. He offered to appeal to court. Last year because of this episode from the Port Authority Director of Development Infrastructure resigned Vidas Karolis. According to Eugenijus Gentvilas, he initiated the Authority to pay LTL 118 thousand (EUR 34 thousand) bigger sum than the contractor later asked the court to order. "Where have been distributed these LTL 118 thousand (EUR 34 thousand)? "-rhetorically asked Eugenijus Gentvilas.