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Tuesday 22.08.2017 | Name days: Rudīte, Everts

Ominasis Latvia opposes the sale of Kemeri sanatorium to Jurmala City Council

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The sale of Kemeri Sanatorium complex to Jurmala City Council without holding an auction violates regulations and creditors’ interests. This was stated in the letter by lawyers of law firm Raidla Lejiņš & Norcous, official representatives of the sister of the late owner of Ominasis Latvia – Omar Salih Alhamdi.

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn this letter, representatives ask the municipality to review the decision to sell Kemeri sanatorium complex without holding an auction.

According to the lawyers, this decision violates not only the Insolvency Law, but also Section 105 of the Latvian Constitution. This is because Kemeri Sanatorium would be expropriated without a fair compensation for its owners. If this persists, the administrator of Omar Salih Alhamdi heritage will be forced to turn to the court in order to secure the rights and interests of the heir in Latvia, as written in the letter.

Representatives of the investor note that the Privatization Agency had previously admitted that the investor had invested LVL 10 million in Kemeri sanatorium. Therefore, the sale of the complex for LVL 3,905,901 plus VAT violates Section 111 of the Insolvency Law, which states that the sale of property owned by debtors is to be sold for the highest possible price.

The total requested price of the sale of Kemeri Sanatorium is LVL 6,264,959. Given this requested amount, the price offered for Kemeri Sanatorium by Jurmala City Council does not cover even half of the requirement presented by creditors. This means: if Kemeri Sanatorium is sold to Jurmala City Council without an auction, only some part of creditors’ requests will be covered.

This is why the authors of the letter request that officials review the decision regarding the sale of Kemeri Sanatorium.

Given the rules of Kemeri National Park regarding Kemeri Sanatorium complex and investors’ interest for this specific object, there is not reason to believe the market will not be able to secure the interests of society in terms of tourist resort plans. There is also no reason to believe resort business is such an important industry that requires the involvement of municipal or state government, as mentioned in the letter.

Authors of the letter also note that the involvement of Jurmala City Council in commercial activity may lead to violations of regulation of the European Union for state support.

As BNN had previously reported, Jurmala City Council has decided to ask for a credit from the Latvian State Treasury. A total of LVL 4 671 540 will are required to purchase Kemeri sanatorium.

There will be consultations held with the Municipal Loans and Guarantees Control and Oversight Board. This will provide the necessary permission. It is planned for this matter to be discussed during the August 14 meeting.

“Kemeri sanatorium is a monument of the era of Latvia’s independence. In order for us to preserve this monument for society, the municipal government is prepared to take full responsibility for its future development. The restoration of Kemeri sanatorium will definitely have a positive impact on Jurmala as a tourist resort”, – said the Chairman of Jurmala City Council Gatis Truksnis.

“We are currently working on the Restoration of the resort and creation of appropriate resort infrastructure in Kemeri project. We have formed a special group for this task. The main objective of this group is to evaluate the necessary measures for the object’s take over and preservation,” – the Mayor said.


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