“Rīgas satiksme” Interim Board prepares report on situation in company and action to be taken
The Interim Board of “Rīgas satiksme” prepared and submitted to the shareholder a report on the situation in the company and action to be taken. The report deals with the issues of managing “Rīgas satiksme”, situation and proposed action regarding procurements which last week were subject to corruption charges, legal and natural persons involved in possible corruption, financial situation and proposals how to improve it, as well as proposals for further development of the company and improvement of its operation.
In the field of management, it is recommended to improve the decision making process in the society to make this process more transparent and to eliminate possible corruption risks. The board has also decided to dismiss the company’s Procurement Commission, to suspend all the procurements until their careful evaluation and to establish a new Procurement Commission and relevant evaluation procedures until the end of this year.
The Board has informed the shareholder about its readiness to involve an international audit firm to evaluate procurement procedures, contracts, finance management, and prepare proposals for improvements; the audit firm could start to work next week.
The board also informed the shareholder that there is an urgent need to establish a council that will supervise the company’s operation and evaluate its strategic processes. The members of the council should be elected through a contest from among the industry’s professionals, and one of the council’s first tasks would be to announce a contest for membership of “Rīgas satiksme” permanent board, as well as to supervise professionally the process of the company’s evaluation and reforms.
The Interim Board believes that it is necessary to terminate the signed contracts on the delivery of buses, trolleybuses and low-floor trams and the procurement procedure for the rolling stock of the “Skanste” tram project, as well as to carefully evaluate and supervise the construction projects of the “Skanste” tramline. Before the final decision, an opinion of the international audit firm on the elimination of risks for the company resulting from termination of the contracts will be requested. It was also asked to evaluate the contracts signed with companies related to the natural persons detained and the possibilities of terminating these contracts.
The Interim Board points out that in order to stabilize the financial situation of the company, it is necessary to prove to creditors and partners the elimination of corruption risks and the feasibility of each transaction and to perform an additional analysis of each contract to be signed and each payment to be effected. The company’s investment and development projects, all contracts signed and the company’s financial capabilities will be also re-evaluated from the point of view of their sustainability. The possibility of postponing infrastructure modernization and capital investments until the company’s financial situation is stabilized will be also evaluated. At the same time, the costs of the service will be analysed in detail and its production costs will be harmonized with Riga City Council’s Licencing Commission.
The Interim Board believes that it is necessary to increase the role of public transport in the capital city, to expand the network of routes provided by “Rīgas satiksme” to Riga’s closest neighbouring municipalities, to create a single and harmonized system of passenger trains, intercity and urban transport, to develop park&ride projects next to tram terminals, to create new public transport lanes and to develop other proposals for passengers’ comfort.
The detailed report was considered at the Interim Board’s meeting and submitted to the shareholder December 20. The Board received full support from the shareholder to take necessary actions and implement the reforms.
You can find more information on „Rīgas satiksme” services, route schedules, types of tickets and other news www.rigassatiksme.lv and also in social networks, such as Twitter, Facebook, and draugiem.lv.
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