Construction, Culture, Latvia, Legislation, Real Estate

According to the auditor's report, the Ministry for Culture and J3B, in carrying out the planning, building and financing of state cultural objects, did not ensure compliance with state interests or the effective use of budget resources. The SAO discovered gaps in all areas covered by the audit, informs LETA.

The SAO established that the objectives of the large-scale investment projects were not clearly defined in state political planning documents. The priority tasks and directions of action for the building of these cultural objects of state significance were already defined in 2006, when the Latvian National Library, Riga Acoustic Concert Hall and Contemporary Art Museum projects were initiated. The resulting benefit received by society does not correspond to the amount of resources used.

For example, almost LVL one million was spent on the realization of the Riga Acoustic Concert Hall project; however, the result is only an approved design, while in the Contemporary Art Museum project, LVL 74,340 of state finances were used for purposes unconnected to the project.

In concluding an agreement with the company Jaunrigas attistibas uznemums, J3B exceeded its right of representation and created legal and financial risks of at least LVL 526,912. Moreover, the Ministry for Culture made no attempt to prevent the agency's illegal actions.

At least LVL 209,386 of the state budget finances allocated to the National Library project were used for purposes unconnected with the project. Moreover, the 135.3 million construction agreement concluded by J3B did not provide for construction of the building at the lowest possible cost.

The contract was concluded regardless of an expert's conclusions that the proposal, which involved payments exceeding LVL 116.5 million, was economically unfavorable. On the other hand, a report by the Latvian Association of Construction Engineers, which stated that the proposed costs for the construction job were justified and in keeping with the market situation, were taken into account, despite this opinion not being based on an expert's report.