“Rīgas satiksme” Board informs about events of the week (May 27 – June 2)
On May 27, RP SIA “Rīgas satiksme” Board Chairman Dr. iur. E. Saulītis and Board member J. Švanders, who is in charge of financial issues, informed the leadership of Riga City Council and the heads of the committees about the financial situation of the capital company and some problem issues that need to be addressed immediately. The start for the optimization of the capital company’s organizational structure has been approved. The board was asked to prepare and to submit, until July 15, proposals for changes in the delivery of public transport services in Riga city.
On May 28, the Board continued the meeting of April 23, to take decisions regarding vehicle delivery contracts signed with “Škoda Transportation/Škoda Electric”. The Board decided to continue negotiations with “Škoda Transportation/Škoda Electric” on the fulfilment of the signed contracts, as well as authorized Board members J. Švanders and J. Meirāns to meet representatives of Czech credit institutions to discuss questions regarding alternative sources of funding or changes in the type of funding. The Board’s advisor, A. Konošonoks, also participated in the negotiations.
On May 28, Board member J.Meirāns and Transportation and Traffic Organization Director E. Zivtiņš met the management of Riga International Airport and discussed the possibility of improving the provision of public transport services to passengers and the airport’s staff. Possible changes include moving the public transport stop closer to the terminal, organizing additional runs of bus route No. 22 in morning and night hours, as well as extending bus route No. 7 to the airport via Mārupe. The parties agreed to continue their work on the implementation of these proposals.
The regular meeting of RP SIA “Rīgas satiksme” on the results and indicators of Q1 was held on May 29. Sector reports showed that overall, the capital company is reaching the planed indicators, yet there are also some negative trends, including staff turnover due to better salaries offered elsewhere. We can expect these trends also in Q2, because in this quarter significant changes had to be made in public transport routes and schedules. On May 29, Dr. iur. E. Saulītis and Board member J. Meirāns took part in the meeting of shareholders of SIA “Rīgas karte”. The meeting approved the annual report of the capital company for the year 2018, appointed the auditor and decided to pay out dividends. The shareholders decided to pay dividends in the amount of 65% of the 2018 profit, but the question of distributing the profit for the previous years will be considered once again in August.
Given the fact that on May 30 RP SIA “Rīgas satiksme” Board member went on a business trip to Tallinn to familiarize with the mobile solutions used to sell tickets there, the meeting of the Board was postponed to May 31. The Board discussed various issues, including the approval for the signing of several purchase contacts, listened to the report by head of the Internal Audit Section, Ņ. Lasmane, about the conclusion of the evaluation of contracts signed with private individuals, the conformity of the documents submitted by “Škoda Transportation/Škoda Electric” to contract provisions. The Board also decided to stop any kind of contractual relations with SIA “Alcom-Trans” and ordered the receipt of the already ordered goods. The Board decided that the issue of delivering spare parts to “Škoda” vehicles shall be only solved with the manufacturer.
As predicted before, on May 31 the meeting of RP SIA “Rīgas satiksme” shareholders approved the audited report of the capital company for the year 2018. According to the report, RP SIA “Rīgas satiksme” ended the year 2018 with EUR 6.2 in losses, while other results were normal. Unfortunately, the representative of the holder of capital shares, V.Baraņņiks, has put on the agenda the question of appointing E. Jakrins to the Board, without agreeing this appointment with the Directorate of Ensuring Commercial Activity of Riga City Council’s Property Department and without informing the Board in advance. At the meeting, this appointment was opposed by the supervisory body as well as several Board members. Their objections were not taken into account, yet the appointment was postponed to June 7 and the Board was assigned with preparing proposals about the fields in which E. Jakrins could not take decisions to avoid the possible conflict of interests.
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