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Sunday 22.01.2017 | Name days: Austris
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Criminal process launched in relation to diesel trains modernization project

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUState Police Economic Crimes Prevention Office has launched a criminal process in relation to Pasažieru vilciens’ diesel trains modernization project worth EUR 22 million, as reported by Panorāma programme of LTV.

Police began an inspection of PV’s project in August. In October, authorities launched a criminal process regarding criminal acts committed against properties and in state institution service, as Panorāma was told by State Police representatives.

This decision was made because it was not possible to access all the necessary documents detailing the progress of the project.

There are currently no suspects in the criminal process. However, according to information reported by Panorāma, authorities intend to assess the actions of current and former heads of the company’s management, as well as Transport Ministry’s officials.

The audit that covered PV’s diesel trains modernization project, the realization terms of which had been pushed back multiple times and EU funding for which had been partially lost, stated that the preparation phase of the project had not fully addressed all the risks. On top of that, documents detailing the project had been prepared too quickly.

«The audit concluded that in spite of the not too successful beginning phase of the project, work that followed had been carried out in accordance with Transport Ministry’s signed agreement, had been economically justified. Other decisions, however, including the halting of the project would lead to loss of EU co-financing. Because of that, PV and Transport Ministry would have been put before a decision – paying for the project from their own budgets or becoming involved in a long court process with poor chances of winning,» – PV representative Egons Alers  previously said.

On 19 September, Pasažieru vilciens received the last of the six modernized diesel trains. This concludes EU Cohesion Fund’s co-financed project for the modernization of 19 diesel trains.

The total cost of the diesel trains modernization project reaches EUR 22 million. Nearly EUR 9 million of this amount was provided by the European Cohesion Fund’s ‘Infrastructure and Services’ programme, EUR 1.5 million came from the state budget and more than EUR 11.6 million – from Pasažieru vilciens. Because of delays in the project’s realization and breach of deadlines, penalties worth a total of EUR 2.2 million had been applied, reducing Pasažieru vilciens’ investments in the project.

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