Latvian Economy Minister Daniels Pavluts

At a shareholders’ meeting of the Latvian Privatization Agency (LPA) today, a decision was made to dismiss the current LPA board and appoint Latvian Venture Capital Association’s board member and law offices “Sorainen” senior lawyer Ansis Spridzans as acting head of LPA.

He will be in charge of LPA until a new board is approved, Economy Minister Daniels Pavluts says.

Kaspars Lore, deputy head of the Economy Ministry’s Legal Department, will be the LPA board’s acting member.

Taking into consideration the conclusions of an independent audit of LPA personnel management and management process, all four LPA board members were released from their jobs today.

The officials include Iveta Zalpetere, Gundega Dreska, Egils Zarins and Verners Lusis.

Amendments were passed to the LPA charter today, reducing the number of board members by half, therefore, a new temporary board was appointed in order to ensure stability and continuity of LPA operations.

“Currently LPA is the holder of state shares in several valuable state-owned companies that are highly important to the state, therefore the management of the LPA must be competent and professional, in not only property alienation and legal matters, but also in issues that deal with asset management. This is true for the staff, but not the previous management.”

“Furthermore, the outgoing board had little success with teamwork and creation of a constructive work environment at the agency. That is why a decision was taken to alter the LPA board by reducing the number of the LPA board members, appointing a temporary board and announcing an open competition for the vacant seats on the board. The changes are meant to ensure stable and transparent operations of the LPA without halting the agency’s work,” explained Pavluts.

The open competition for LPA board members will be announced in the near future, so the new board of the LPA could begin to work by the end of the year. The LPA’s new board will have to complete work on a strategy for termination of LPA operations, and begin implementation of the strategy, ensuring adequate communication about the planned LPA activities with society and the agency’s staff.

“One of the main goals for the new, reduced LPA board, both members of which will be selected through an open competition, will be to consistently and professionally complete LPA operations in two years at the longest, in accordance with the upgraded strategy for the termination of the LPA operations. The en-masse privatization process in Latvia came to an end already several years ago, the LPA has less work to do, and significant reforms to the system of state-owned shares are under way, therefore there is no need for the LPA to continue operations for a long time,” said Pavluts.

Ref: 102.105.105.2456