In the meeting of the Coalition Cooperation Council on May 28, the Reform Party heard out the political party Unity’s, in charge of the Transport Ministry, explanation of AS Passenger Train (Pasažieru vilciens) board appointment process.

However, Reform Party did not gain confidence in the hasty process, which the responsible parties have failed to explain to the public. The process does not suggest transparent and accountable approach to managing state capital, according to the Reform Party.

The party believes that the arguments on the urgent need to appoint a new board are not justified, as the European Commission had already warned Latvia that further implementation of Passenger Train and the Spanish company CAF train supply contract can lead to Latvia having to pay 100 million lats itself. Originally, it was intended that the amount would be co-financed by the EU Cohesion Fund.

The Reform Party agrees that ministers, within their competence and areas of responsibility, shall have the right to choose candidates for boards of state-owned companies. Party affiliation can never be a disqualifying factor, but the whole appointment process must be transparent, with clearly defined criteria and explanations why some candidate meets one or another criteria. Reform Party believes that the Transport Ministry’s explanation on Passenger Train board selection criteria was not grounded enough. The party says such criteria as resistance to stress and knowledge of the industry cannot be the only criteria for such a top post in such a serious several-hundred-million-euro worth procurement process.

The Reform Party insists on clear, timely and understandable explanations of processes related to the Passenger Train procurement contract. The process has been both delayed and rushed. Neither is there a clear action plan. So five Reform Party ministers are set not to take part in the Cabinet of Ministers’ decision-making, thus not co-assuming responsibility for the contract,the party says.

As reported, the Reform Party believes that the way AS Passenger Train board was appointed is unacceptable and does not suggest transparent and accountable approach to the management of public companies. The party distances itself from the process and calls on Unity to provide decent explanations.

Ref: 102.105.105.1510