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Ceturtdiena 23.11.2017 | Name days: Zigfrīda, Zigrīda, Zigrīds
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Criminal proceedings are initiated for failed train procurement project

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With the beginning of the new train procurement process, the Prosecutor General’s office has initiated criminal proceedings in regard to the action of the previous Board of AS Pasažieru vilciens (PV).

Press-secretary of the Prosecutor General’s office Aiga Senberga reports that the institution has reviewed the Transport Ministry’s last year application on December 21 about the ceased train procurement project; materials related to the case have also been analysed in detail.

During the investigation, it was revealed that the actions of the Board of PV, during the contract process with the Spanish Construcciones y Auxiliar de Ferrocarriles (CAF) of April 2, 2012, bear the signs of offences stated in the “Offences of public service” Section of the Criminal Law. This is why a decision has been made to initiate criminal proceedings.

As reported, the massive procurement contest was announced in Latvia in 2009. The total costs of 34 new electrical trains and 7 diesel trains were estimated at 144 million LVL. The second half of the contract provided for the maintenance of these trains for 30 years. The total worth of the contract was 610.76 million EUR. The new trains should have been produced before August 2015.

It was only uncovered afterwards that the contract signed by Nil Freivalds did not comply with the initial requirements of of the procurement project. This threatened the allotting of the funding from the EU.

CAF had turned to the Arbitration Institute of the Stockholm Chamber of Commerce, asking to initiate a mediation process.

During a Transport Ministry’s called shareholders meeting of PV last October, it was decided to turn to law enforcement institutions in order to assess the actions of the previous Board in the procurement project.

The current Board of PV under Artis Birkmanis was appointed in May 2012.

Ref: 102.109.109.6750


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