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Monday 23.10.2017 | Name days: Daina, Dainida, Dainis

Prudentia gains EUR 380,000 in the Liepājas metalurgs case

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUFor the help provided in the case of the now insolvent Liepājas metalurgs, Prudentia Advisers and IBS Prudentia have been paid EUR 384,000 from Finance Ministry in the past 11 months.

‘For the services Prudentia provided as part of Finance Ministry’s state budget sub-programme 31.02.00 the Office of State Debt paid a total of LVL 269,790.32 in the first 11 months of 2013,’ – as it was officially reported by Finance Ministry’s State Secretary Sanita Bajāre to

Based on documents kept secret by the government in the Liepājas metalurgs case, it is known that the amounts paid to different failed consultants have been even larger.

These documents show that throughout May 24, 2013 – September 19, 2013 Finance Ministry performed payments worth LVL 266,520.55. This includes a transfer of LVL 189,631.20 to Prudentia; LVL 45,286.03 to Glimstedt law firm and LVL 31,603.02 to Metal Consulting International Limited.

It is likely that Prudentia’s ‘fat’ months are over, however. It was announced by the government last November: ‘Given the fact that Liepaja Court declared Liepājas metalurgs insolvent November 12, 2013, Finance Ministry does not plan to perform any more payments to Prudentia. With the court’s ruling in effect, all functions are handed over to the administrator of the insolvency.’

It was previously reported – even though the co-owner of Prudentia Advisers Ģirts Rungainis claims to be an investment banker and regularly provides advice to Latvian entrepreneurs and politicians on how to hold a proper business, data of Lursoft and information of Pietiek reveal regular payments to Prudentia being performed by Valdis Dombrovskis’ government, which creates a very different picture altogether. Political backing and the economically draining contract in regard to assistance with airBaltic proved to be Prudentia’s only source of income in 2012.

‘In 2012, the company provided consultations to Latvia’s national airBaltic airline, two of the largest Latvian milk processing plants AS Rīgas piena kombināts and AS Valmieras piens in their plans to merge with one another and continue their work under a unified Food Union brand. The company also provided other consultations,’ – mentioned in Prudentia Advisers state report for 2012.

It is stated in the 2011 contract between airBaltic and Prudentia Advisers that the latter was entitled to be paid LVL 13,794 by the airline every week. This contract still has not been terminated even though Prudentia failed to find a potential investor for airBaltic.

This means that Prudentia may have received approximately LVL 689,000 from the state owned airline in 2012. This net turnover is nearly equal to Prudentia Advisers official turnover for 2012 – nearly LVL 689,000.

This means not only was Valdis Dombrovskis’ government the only supporter of Rungainis’ company, but also that the contract with airBaltic, signed solely because of political backing, brought him and his company LVL 216,060 of clean profit. It is unknown how this money was divided.

Prudentia Advisers services were also bought in the last three major crisis situations – the situation with airBaltic and the search for an investor; Parex Banka crisis and the Liepājas metalurgs disaster.


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