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Tuesday 22.08.2017 | Name days: Rudīte, Everts

Prudentia distances from the consequences of the advices it once gave

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Аuthor: Edijs Pālens/LETAIn its secret report to the Cabinet of Ministers in regard to Liepājas metalurgs on April 16, Prudentia basically refused to take any responsibility for any losses that could arise from following the recommendations proposed by the company.

The decision to have Prudentia help in resolving the difficult situation with Liepājas metalurgs without announcing a contest was made on a closed government meeting on April 16. This decision was based on weakly argumented assumptions.

The reason for not announcing the contest was justified by the fact that “the situation with Liepājas metalurgs affects the interests of the Republic of Latvia, and there is no need to apply the procurement procedure stated in the Public Procurements Law, because its application could cause critical damage to state interests”.

In the four years since Valdis Dombrovskis became the head of the government, Prudentia‘s services were called in without contest in three other crisis situations. It is still helping airBaltic with finding a strategic investor. It was also previously called in to help with the Parex bank crisis. It seems as though the government has chosen Prudentia as its regular partner.

Even though the government is advised to sign an agreement specifically with Prudentia in the name of state interests, the company itself admits in its April 16 report to the government that “without assessments from industry specialists, it is hard for Prudentia to offer its own opinion” about any payment optimizations of Liepājas metalurgs.

At the same time, Prudentia refuses to take any responsibility for any losses than could arise as a result of its recommendations. In Prudentia‘s prepared report about the situation at Liepājas metalurgs and possible solutions, which the government reviewed behind closed doors on April 16 it is stated that “neither Prudentia not any other person related to the company hold responsibility for any direct or indirect losses that could be a result of this report”.

Seeing as how Prudentia referenced documents and reports from sources that “could be trustworthy” in its report to the government, the company does not guarantee that its report is precise. “Responsibility for the information provided by the aforementioned institutions and its representatives is held by the aforementioned institutions and its representatives. Prudentia Advisers does not guarantee the accuracy and completeness of this information and report”, – as it was stated in the report reviewed by the government.

The initial contract between the creditors club and Prudentia provides a payment mechanism, according to which the consultant is paid 45 000 LVL for the first three weeks (15 000 LVL per week) by Citadele bank and SEB bank.

On April 16, however, the government was informed of the requirement of the two creditors so that the Finance Ministry and Latvenergo would also pay for further services of Prudentia. This is why government had decided to allow the Finance Ministry to sign a contract with Prudentia. The government had also allowed for the possibility that Prudentia‘s services could be needed after the end of the contract, depending on the situation with Liepājas metalurgs.


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  1. Bigidule says:

    45000 for these charlattans. They have money to waste unless it is bribe for some politics.

    Thumb up 0 Thumb down 0

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