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Saturday 17.03.2018 | Name days: Ģertrūde, Gerda, Gertrūde

Criminal proceedings to assess the severity of the possible violations at Riga Free port

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Аuthor: Lita Krone/LETAFollowing the results of the inspections by the State Audit (SA), the State Police (SP) has decided to initiate criminal proceedings in regard to the possible violations at Riga Free port (RFP).

Representative of SP’s social relations department Lita Juberta told LETA that the Economic Crime Department initiated criminal proceedings on March 27.

As it is known, according to results of the recent audit at RFP, the port’s administration has been carrying out economic activities that did not comply with regulations. As a result of such non-economic activities the port either lost or squandered a total amount of 41 million LVL.

Conclusions of the revision did not cover only development projects, the formation of the fleet and contract deadlines. SA notes that RFP had illegally spent 595 000 LVL on unjustified bonuses, gifts and health insurance for Board members, as well as incorrectly calculated benefits, leave money and sick leave money.

It was concluded that the Board of the port had wasted 145 000 LVL on donations that did not comply with financial resource squandering prevention regulations. 745 000 LVL were spent on requests for financial aid from individuals and legal persons. This was registered as contracts for advertisement services, even though the procurement of such services was never planned, it was never coordinated and approved, its possible effect on the supply of services and general cargo turnover was never assessed.

BNN previously reported that the State Audit (SA) has recently performed an inspection at RFP in order to determine whether the port administration’s activities for the 2009-2011 period complied with regulations.

A total of 595 thousand LVL of funds belonging to RFPA have been illegally spent on bonuses, gifts and health insurance of Board members. They are also said to have wrongly calculated benefits, holiday payments and sick-leave certificates.

Regulations state – goals are to be achieved using the least possible amount of financial resources. However, when presenting entrepreneurs 1.08 million LVL for docking maintenance fees, RFPA had not determined the actual amount of money entrepreneurs had invested in accordance with their contracts.

The port has spent 145 thousand LVL on donations that do not comply with rules regarding financial squandering prevention acts. 745 thousand LVL were spent on natural and legal persons’ agreements for financial support as if signing contracts for purchasing advertisement services. Even though the procurement of such services was not planned, it was never coordinated and its possible effect on improving the port’s services and cargo handling was not evaluated.

The port administration’s illogical decisions and employees’ reluctance to complete their duties has resulted in losses worth at least 403 thousand LVL. Funds were spent on repairs of Varma icebreaker (354 thousand LVL), instead of investing them in the base capital of the ship.

Without following regulations the administration of the port relieved cruise ships from having to pay sanitation fees, losing a potential amount of 2.08 million LVL as a result. The administration also did not use the funds provided by tug boat lease in order to collect rent fees of 501 thousand LVL. It also failed to take action to return debts for a total amount of 124 thousand LVL.


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