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

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.

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