as Baltic News Network reports on September 23rd, we have to learn, that more and more distrust is taking place against the Latvian ports.

The article explains, that: The hysteria of members of Latvian Transit Business Association (LTBA), different experts and some of Saeima deputies regarding any possible involvement in freeport Boards in fear of ruining the entire industry as a result in no longer surprising in any way. The very same people who sit in LTBA also work in the Boards of Latvia’s freeports. They are the same people who largely dictate the agendas of Transport Ministry and its subsidiaries, claims Baltic Association for Transport and Logistics.

BATL representatives comment the concerns over Latvia’s transit industry: “The industry’s competitiveness is definitely improved by the freeports’ forced, technologically expensive investment projects and have investors’ wallets hold up state owned hydro-technological structures’ decommissioning expenses and other multi-million costs? The transit industry’s generated multi-million income’s investment into projects unrelated to the industry (many of which have gone bankrupt or are close to it) strongly “increase” the transit industry’s competitiveness. The industry’s “growth”, of course, cannot be imagined without consent from investors, whore are prepared to spend enormous amounts of money in litigations with port Boards. And finally the facts mentioned in State Audit’s reports regarding misappropriation of funds also largely contribute to the “development” of the industry. This also includes all the previous scandals, violations and litigations that involve members of freeport Boards. The same members whose continuous remainder in their posts clearly signalizes: choose Latvian ports – we know where to put your money.”

Read the full story here:

Baltic News Network in English

Baltic News Network in Latvian

Baltic News Network in Russian

Diena.lv

Again we have to read articles on corruption and mismanagement around Latvia and its free port.

As published on September 22nd, 2013 we read in Diena.lv, LA.lv, 10minutes.lv, labz.lv, delfi.lv, tvnet.lv and bnn-news.com the following worrying article:

“BATL supports the initiative to divert profits from port activities to Latvia’s state budget

The Biedrība Baltijas asociācija – Transports un loģistika (BATL) supports the initiative of the Economy Ministry to amend the current regulations to allow the transfer of a portion of Latvia’s ports’ revenue to the state budget starting January 1, 2014.

“It is not the introduction of new taxes on port Boards that will reduce the overall competitiveness of Latvia’s transit corridor but the state’s inability to prevent the arbitrariness of the management teams of Latvia’s ports, which often results in scandals, criminal accusations, irresponsible realization of investment projects and other unpleasant activities. This fact is proven with conclusions from the prosecutor’s office, Corruption Prevention and Combating Bureau, the European Commission and courts,” – as BATL informed BNN.

“We are certain that it is not possible to increase the competitiveness of Latvia’s transit corridor while the arbitrariness of Latvia’s ports still remains, allowing port Boards to freely operate state and municipal assets, not pay taxes and freely manipulate port financial resources as they see fit,” – BATL states.

This is why BATL has decided to support the ministry’s initiative. The association believes that this step will become a signal for the improvement of Latvia’s transit corridor. BATL believes it will not only supplement the state budget but will also force members of port management Boards to seriously rethink their current lifestyle.

…”

Read also in Latvian and Russian on the BNN news portal

The Baltic News Network reports about plan of BATL to get the Ventspils Free Port Authority management replaced (in Latvian). The interesting article published on November 4th 2011 reads as follows:

“Ventspils Free Port Authority (VFPA) has long been practicing systematic violations and purposeful contra-action towards business interests of companies operating in Ventspils port, Baltic Association of Transport and Logistics (BATL) told BNN.

“Openly irrational actions, hidden and short-shortsighted decisions taken by the VFPA managers as well as delayed decision-making often endanger and will keep endangering foreign investments in Latvia. This undermines Latvia’s reputation of a decent business partner and lays grounds for deteriorating political and economic Latvia’s relationship with the western and the eastern neighbouring countries,” Aivars Gobins, Chairman of BATL, writes in an open letter to the Prime Minister Valdis Dombrovskis, Transport Minister Aivis Ronis, Economy Minister Daniels Pavluts, Finance Minister Andris Vilks, Local Government and Regional Development Minister Edmunds Sprudzs and first deputy of Ventspils City Council Janis Vitolins.

He points out that, during the past ten years, companies operating in Ventspils port and Ventpils City Council opposition deputies have repeatedly approached the Saeima, the President, ministries as well as other competent authorities with complaints about the VFPA’s negligence over investors.

“The reason for that might be the officials’ private interests, which serve as an obstacle for investors to develop their businesses since they are not considered to be loyal to the city power. Moreover, we have also come up with possible solutions and law amendments that have been neglected so far.”

“The VFPA board reviews nearly all proposals, requests and applications by such “unloyal” companies behind closed doors, without participation of investors representatives. These meetings are entirely secret, which alone suggests that the management of the port has a reason to conceal their motives behind their weird and unreasonable decisions. The VFPA is also often avoiding meetings with investors representatives,” according to the letter.

…. ”

Read this article in English or Latvian in the Baltic News Network Portal.

as the Baltic News Network reports according to BATL – the Ventspils Free Port is lobbying its companies instead of the interests of Latvia.

In the article published June 9, 2011 BNN reports, that

“The Baltic Association of Transport and Logistics (BATL) warns Ventspils Free port administration’s activities against AS Ventspils Grain Terminal clearly suggest once more the changes are necessary within Ventspils Free port administration.

Kazakh investors own 100% of AS Ventspils Grain Terminal, which is a perspective project to strengthen the economic relations between Latvia and Kazakhstan. If the project was implemented successfully, it would be a signal also for other investors to place financial resources in the Latvian economy. The association agrees to Economy Minister Artis Kampars description of Ventspils Free Port activities – irresponsible, mismanaged and anti-governmental, according to BATL statement.

BATL, which is made up by the leading companies operating in Ventspils Free Port, point out they are forced to deal with the methods of its administration and its arbitrary, economically ungrounded and different decisions regarding a number of companies.

Similalry, BATL also stresses the port has turned into a private company run by a small number of individuals and its key aim is no longer to develop the port but to lobby «their» companies and harm others. …”

Read the whole article in English or Latvian in BNN.

Articles related to the same subject can be found at:

Delfi.lv

News.lv

Riga24.lv

Batl.eu

BNN reports:

In December 2012, Judge Melina of the Riga Centre District Court became famous when she ordered some legally impossible provisional measures against two of the richest companies in Latvia.

She ordered that these companies could not anymore register any changes in the Register of Enterprises unless some minority shareholders (Olegs Stepanovs’ company Topmar with less than 13% of the votes in the case of Ventbunkers and Stepanovs’ Lawyer Alekseys Ovods with less than 0.1% of the votes in the case of LNT) would give their consent to the registration. Many people asked with which means of doubtful legality she could be convinced to do something impossible like this.

But then, the Senate of the Supreme Court of Latvia ruled that provisional measures of this type are generally impermissible in commercial litigation. The Supreme Court’s ruling was notified to Melina. Everybody expected that she would follow the higher Court’s ruling and lift the impossible measures. But on 15 March 2013 judge Melina did the opposite and refused to lift the provisional measures. Her struggle to distinguish this case from the one handled by the Supreme Court can be viewed as artificial and bringing embarrassment to the legal community in her defiance to brush away the position taken by the Supreme Court.

….

and refers to a press release published by AS Ventbunkers press service the previous day:

inf130319-judge-Melina-Ventbunkers-EN

The article in the portal of BNN reports this threat with reference to inside sources.You can find the original English Article here.

There is also a Latvian and a Russian Version of this article available.

The full length article can be found in the BNN portal in English, Latvian and Russian.

Read an abstract here …

Meroni-led companies show good performance

August 7, 2012

Companies led by Rudolf Meroni show good performance in terms of turnover and profit, which he himself describes as very successful. To give an example, Ventbunkers profit is up despite dropping amount of cargoes.

Rudolf Meroni

Back in 2010, Ventbunkers’ turnover reached 41.1 million lats, compared to 36.1 million lats in 2009. Whereas, compared to 3.4 million lats made in 2009, the company’s profit hit 6.7 million lats in 2010.

Besides, last year Ventbunkers signed a contract with Mercurio for a record rate – 8.10 euro cents per ton. It should be added that back when Olafs Berkis was in charge of the company, the same tariffs reached mere 2.55 euro cents.

Similarly, also the company Baltijas Ekspresis’ net profit is up 38%, totalling 1,7 millions lats.

Also potassium salt transhipment company Kalija Parks shows good performance – its profit before provisions and tax reaches 925 000 lats.

Last year transit company AS Ventspils tirdzniecības osta’s turnover accounted for 26.64 million lats. It is an increase of 9.6% over 2010, when the company turned 24.31 million lats. Profit is up 57% from 353 171 lats in 2010 to 554 580 lats in 2011.

It should be noted though that last year was not that successful for Ventbunkers, because the Russian concern Lukoil’s subsidiary Litasco had blocked its terminal and railways. It is exactly for this reason why the company failed to meet expectations – 11 millions lats.

Such Litasco’s activities pushed Ventbunkers into a loss of 28.19 million lats, so in late 2011 Meroni-led Ventbunkers management prepared a claim against Litasco to compensate for damages. If the amount was recovered, the company’s profit performance would be impressive.

The full length article can be found in the BNN portal in English, Latvian and Russian.

News articles on this issue can be found e.g. in Baltic News Network. Read there in English or LatvianAbstract of the article published in BNN on August 3rd, 2012 with reference to Aivars Gobins:

Dzintars Kass disgraces himself over trumped-up charges

August 3, 2012

The Ventspils prosecutor Nadezda Jakusonoka on July 24, 2012 dismissed alleged charges of intentionally concealing information from the tax authorities (Art. 217, Subsection 2 of the Criminal Code) against the legitimate Ventbunkers management board members Alvis Haze, Janis Haze and Mihhail Dementjevs. Thereby she rejected false accusations and established that their activities had no nature of offence in accordance with this clause.

An investigation against the legitimate Ventbunkers Management was initiated in March 2012 by the false «Berkis Management» of Ventbunkers with the Latvian Finance Police on the basis of misrepresented facts submitted by the false Ventbunkers Chairman, Dzintars Kass. It is loudly rumoured that a big brown envelope was involved and methods of doubtful legality were applied to «convince» the Finance Police to start an investigation. In late December 2011, Berkis and his puppets had reached a false registration in the Commercial Register by criminal methods based on falsified documents prepared by the master of falsified shareholders meetings, Martins Kveps.

The Ventspils Prosecutor Jakusonoka’s decision proves that Kass and his sponsor, the controversial and to the ruling party’s Unity «black funds» related Ventspils’ millionaire Olafs Berkis, had spread false information about the legitimate Ventbunkers Management. False documents were used by Berkis and his accomplices to obtain a false registration of management positions in Ventbunkers to which they were never elected in a legal way.

Read on in Baltic News Network englisch Version

The article in BNN-NEWS.COM reports as follows (see also the latvian version):

Prosecutor General’s Office too weak for Lembergs

and further on states that:

The accused Latvian politician Aivars Lembergs seems to be gradually recovering his control over the Latvian oil business. His moves remain unnoticed and are partly approved by inactions of the Prosecutor General’s Office.

Ventspils millionaires Olafs Berkis, Olegs Stepanovs, Igors Skoks and Genadijs Sevcovs have been elected into the AS Ventspils nafta Supervisory Council. They are all believed to have in mind one and the same thought of selling the Latvian oil business. They intend to do it bypassing the state as the potential owner of the seized Lembergs’ shares.

Besides, the persons have carried out a variety of schemes that have brought the state and the company huge losses. Now there is a possibility that national oil business will simply be sold and the money will travel straight into the pockets of Lembergs and Berkis. But the Prosecutor General’s Office seems not to to be concerned.

The enthusiasm from 2007 about the fight against corruption has practically faded and politicians no longer fear possible punishment that much. Lembergs recently gained access to oil companies’ money in cooperation with Berkis, Skoks, Sevcovs and Stepanovs, who had falsified documents and held a number of fake shareholder meetings. This makes it easier to keep bribing politicians and officials who are never tortured by their conscience.

To read the full article (which we recommend) please go to bnn-news.com for the english version – or to bnn.lv for the latvian version.

Riga, Latvia: On December 28, 2011, an associate of Martins Kveps’ law firm once again submitted to the Register of Enterprises brutally falsified documents of a Shareholders’ Meeting, which never took place and which had never been convoked. This is the fifth attempt of the notorious Kveps to illegally seize control of the company Ventbunkers, one of the most important enterprises involved in the Oil Transit Business in the Latvian port of Ventspils.

On June 27, 2011, the legitimate Management Board of Ventbunkers convoked a Shareholders’ Meeting to take place on December 20, 2011. The legitimate Shareholders of AS Ventbunkers properly carried out this Shareholders’ Meeting. More than 70% of the Shareholders were represented at the Meeting. The results of this legitimate Shareholders’ Meeting were submitted to the Register of Enterprises and properly registered on the following day.

But then, three days later, on the 23rd of December 2011, Martins Kveps dared to try to hold another Shareholders’ Meeting of Ventbunkers, which had never been convoked by the Management Board and never took place. From the list of participants, it becomes obvious for whom Kveps made this brutal falsification. Kveps represented the company Topmar Baltic Investments, beneficially owned by Oleg Stepanov. Janis Berkis represented the company Kement, owned by his father Olaf Berkis. Additionally two other companies, Steropes Limited and Gyges Limited, participated even though they are not and never were shareholders of A/S Ventbunkers. These two companies belong to Igors Skoks and Gennady Shevcovs respectively. However,  the most intriguing  detail is as follows:  Liga Lemberga,  Anrijs Lembergs and Optima Management also participated in the false meeting. It is well known that these three Shareholders are acting in the interest of Aivars Lembergs. Therefore, it is equally obvious that Lembergs also stands behind this brutal falsification.

The time of false and illegal corporate actions seems not to be over yet in Latvia. With a simple and criminal falsification, such as was made by Kveps and his cohorts, it seems to be possible for anyone to submit documents to the Register of Enterprises, have them registered and give the (wrong) appearance to the public of changes to the legitimate management of a company. Ventbunkers is submitting a criminal complaint to the investigation authorities. It is hoped that the General Prosecutors’ Office will intervene and stop such brutal falsifications and criminal acts from reoccurring in the future.

Martins Kveps brutally falsified another Ventbunkers’ Shareholders’ Meeting with the involvement of Lembergs