bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 22.01.2018 | Name days: Austris
LatviaLatvia

SA: Agency of Court Houses sold properties in Jurmala in spite of Cabinet of Ministers’ decision

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUReal estate properties of the justice sector, excluding prison infrastructure, is part of the main capital of Agency of Court Houses. However, the State Audit has concluded that Justice Ministry has not been all that active in monitoring activities of the agency and establishing long-term goals.

Agency of Court Houses is a state owned capital association. Its main function is to manage and maintain real estate properties of the justice sector. One important function of this capital association is to develop new projects, attract finances, create savings and use them to develop real estate properties. This model helps relieve justice institutions of carrying out functions uncharacteristic to them. Justice Ministry is the owner of this capital association and its main client.

State Audit has uncovered that the Agency of Court Houses had managed to save up a considerable amount of EUR 2 million. Unfortunately, it seems that the agency has no clear plan to use this money. Because of that, this fortune simply remains on the agency’s account.

No long-term activities to help develop real estate properties of the justice ministry are planned. The agency had previously carried out construction of three new court houses by using attracted capital for this goal. However, only one of those projects had been covered in the Justice System Development Strategy in advance.

In 2009, the Courts Administration developed regulations regarding requirements for furnishings and equipment in court houses and premises. However, neither the Justice Ministry nor the Agency of Court Houses has a plan of actions to secure even minimal compliance with those requirements. Many requirements for court houses related to providing access for residents, convoys and other aspects have yet to be implemented.

There are 60 objects under supervision by the Prison Administration. All of those objects are currently not being used for the main functions of the administration. By not delegating management over those objects to the Agency of Court Houses, the ministry has failed to achieve its goal – delegate real estate management functions to its capital association.

State Auditor Elita Krumina notes: «State expenditure has only increased in some areas after the adoption of this model. For example, expenditure of the State Land Service on maintenance of four real estate objects has increased two times. Nevertheless, neither Justice Ministry nor Agency of Court Houses have done sufficient work to compensate the increase of maintenance expenditure with increased maintenance efficiency and gradual reduction of state investments into the agency’s capital.»

SA believes the agency has certain accomplishments in areas that are often problematic for other capital associations – justification behind spent funds, procurement procedures, documentation validity of using transport, etc. Nevertheless, there are also certain aspects in activities of the agency that require a more in-depth assessment.

Costs stated in contracts signed by the agency are not always based on specific calculations, which goes against regulations. Costs are also not viewed in relation to actual real estate maintenance costs.

As a result, 67% of leased properties are unprofitable. In some cases maintenance costs exceed the revenue received from lease by 60%. Losses are then covered by unjustifiably high rent prices established at the remaining one-third of real estate properties. Because properties of the Agency of Court houses are most often leased to state institutions and 95% of revenue of the agency comes from the state budget, this leads to the principle of conjoined vessels – losses suffered by the state by overpaying for rent of real estate objects are covered by revenue from low price for others.

The Agency of Court Houses should increase the profitability of problematic buildings by carrying out investments that would help reduce maintenance costs. Prices should be calculated in accordance with regulations without artificial inflation of costs for the state budget.

State Audit has also noticed the agency’s practice of selling properties. In 2012, the capital association sold two valuable pieces of property in Jurmala – office premises located on Jomas Street 46 and a piece of land located on Pilsonu Street 12. The reason behind the sale of those properties lies in too high maintenance costs. Both pieces of real estate were sold on an auction. The price was also lower than the one initially announced. At least one piece of property was later sold for a price that exceeded the one the property was sold for at the auction. With that, the state lost more than EUR 1 million from those transactions.

It should be added that the sale properties goes against the decision of the Cabinet of Ministers in regards to properties managed by the agency are to be used for the sake of the state. The decision of Justice Ministry to allow the sale of properties a mere six months after investing the agency’s capital into them demonstrates that the justice sector has no need for properties and that investments into said properties is only an excuse to avoid offering them to other budget institutions. State Audit plans to inform law enforcement authorities and request a proper assessment of actions made by officials in those deals.

Ref: 102.109.109.7982


Leave a reply

Week in Lithuania. Fake news on Lithuanian Defence Minister planted on news portal

The Tv3. lt news website was hacked on Thursday, January 18 - a fake news story about Lithuanian Defence Minister Raimundas Karoblis was posted claiming that Karoblis allegedly harassed Ridas Jasiulionis, a journalist at the Žinių Radijas radio station, and admitted being gay.

BNN summary of the week: final report on Oligarchs case and ordered attacks on e-health

BNN offers a summary of this week’s topical news in a variety of categories: Change; Fight; Attack; Growth; Decline; Opinion; and Study.

Economist: the most important reform has to happen in people’s heads

«Of all the clever things taught to us in school about psychology, one thing that has stuck with me over the years is the idea of internal/external control point. There are people who believe they make their own fate. There are also people who believe our fate depends on external powers. I suspect people in Latvia explain successes and failures with external factors much more than people in Switzerland or any other country that has enjoyed its freedom longer than Latvia,» comments Luminor Bank’s economist Pēteris Strautiņš.

Minister promises bigger wages for working people and support for country’s industry

«Latvian Economy Ministry’s priorities for 2018 include increasing wages for working people and providing support to the country’s industry. For Latvia’s centenary year, every resident should have the right to experience the increase of the personal and state welfare,» promises Economy Minister Arvils Ašeradens.

Latvenergo: electricity price has declined 30% in the past three years

Average electricity price in Latvia has declined in recent years. The average price of electricity has declined by 30% at Nord Pool exchange between 2014 and 2017, allowing end user costs to decline, says Latvenergo.

Alcohol sellers in Estonia to be checked by little «police»

To find shop assistants illegally selling alcohol or tobacco to minors, Estonian police introduces the method of sending minors as police aides to retail shops to try to purchase the products banned to them.

EY study: cyber security has become a priority to banks this year

Over the course of the year, priorities of banks around the world have switched from reputation and risk management to data security matters, as concluded in the latest EY Global Banking Outlook 2018.

Political association: UGF and Harmony are covering up state capture

«Parliamentary investigation of Oligarchs case has shown what is what in the Saeima of the Republic of Latvia. Green farmers are in full harmony, covering up Aivars Lembergs and the fact of state capture. They and Inguna Sudraba have made the parliamentary investigation into a farce. Unfortunately, the power in those people’s hands is no farce – rather misfortune for all of Latvia. I hope citizens will take all that into account when they go voting,» says leader of Kustība Par! Daniels Pavļuts.

Tallinn-Helsinki tunnel plan lacks ambition, says «Angry Birds» game maker

While Finland and Estonia work on plans of an under-sea tunnel from Tallinn to Helsinki, the construction of which could start in the 2030s, a Finnish businessman, previously involved in development of Angy Birds video game, has presented plans to finish the massive construction project in 2024 already.

Experts: healthcare financing law will deny healthcare to the least protected

In a discussion regarding healthcare, experts said that Latvian President Raimonds Vējoņis’ proposed Healthcare Financing Law is economically unjustified and ineffective. The document lacks principles of a socially responsible state, because healthcare is becoming less accessible, which will likely worsen public health indexes, says Kustība Par! political party.

Branded «aggressor state», Russia says Ukraine buries Minsk peace agreements

As the Donbas War continues, the parliament of Ukraine has passed the so-called Donbas reintegration bill after three days of debates defining territories controlled by pro-Russian separatists in the east of the country as temporarily occupied by Russia.

Weather to remain winter-like in Latvia during the weekend and next week

On Friday and Saturday, no major increase of snow is expected. Air temperature will increase slightly, but colder masses of air will slow into the country on Sunday, as reported by Latvian State Environment, Geology and Meteorology Centre.

Winter storm in Netherlands and Germany turns tragic

A powerful winter storm in western and central Europe has claimed the lives of eight people.

Lithuanian bishops: skipping fasting on February 16 this year is not a sin

In an unprecedented move, the Conference of Lithuanian Bishops, the governing body of the Lithuanian Catholic Church, said that meat dishes okay for the people of faith on February 16, which marks the 100-year anniversary of Lithuania's statehood and the Lent Friday, which is traditionally a day of fasting for religious Catholic people.

Coincidence? Votes from Harmony and UGF ensure Sudraba remains the head of Oligarchs case committee

On Thursday, 18 January, the majority of Saeima members voted against the proposal to dismiss Inguna Sudraba from the post of the head of parliamentary investigative committee in charge of the review of the infamous Oligarchs case.

Kaljulaid criticised over involvement of acclaimed, but unrestrained director in centennial reception

As Estonia readies for the presidential reception to honour the 100th anniversary of Estonia, its President Kersti Kaljulaid is being criticised in an open letter for trusting Tallinn’s NO99 theatre, whose director physically assaulted a female colleague.

22.1% of Latvia’s residents subjected to risk of poverty

In 2017, 425 thousand persons or 22.1 % of Latvia population were at risk of poverty in 2016 – 0.3 percentage points less than in 2015. Equivalent income of this part of the population were below 330 euros monthly.

LAAC: Latvia’s milk market can be sorted out by joining forces in exports

Latvian Association of Agricultural Cooperatives (LAAC) has received support and praise for the public discussion regarding rapid milk procurement price changes, which is something that has recently affected the majority of agricultural cooperatives. This has helped cooperatives band together in order to sort out the milk market. This idea came from the example set by grain producer cooperatives, which did the same thing fifteen years ago, as reported by the association’s representatives.

Forevers announces its decision to exit from Latvian Federation of Food Companies

Forevers meat processing company has decided to exit from Latvian Federation of Food Companies (LFFC). The contract between two parties will be terminated in January.

Saeima’s Oligarchs case investigative committee hastily approves final report

In spite of objections, grammatical errors, criticisms about lacking effort, as well as Inguna Sudraba’s unfit status to lead the committee, members decided to move the meeting from 11:00 to 08:00 and approve the final report in a rushed vote.

Removal of 1 and 2 euro cent coins from circulation suggested by Bank of Estonia

Estonian central bank is willing to follow the eurozone trend of limiting the circulation of euro 1-cent and 2-cent coins and in time to remove them entirely from circulation in the Baltic country.

Cert.lv: attacks on e-health system and LETA were likely ordered

Attacks on e-health system and LETA agency were likely ordered, said Cert.lv deputy manager Varis Teivāns in an interview to Rīta Panorāma programme of LTV.

As Catalan parliament reconvenes, it elects pro-independence speaker

The Catalan regional parliament has in its first sitting since its ousting and snap December election elected a separatist-minded politician as its Chairman, which indicates that the attempts to break the region away from Spain would continue.

Latvia’s National Armed forces receive new Harris tactical radio equipment

In 2017, Latvia received tactical military radios worth USD 10.5 million from American Harris Corporation. Procurement of radio equipment will further improve command function and help develop a lasting communication system with other NATO member states, as reported by Latvian Defence Ministry.

MEP: Europe continues strengthening its energy independence

«The European Parliament has voiced strong support towards Europe’s energy independence and moving its energy policy away from Russia’s monopoly by investing in energy efficiency and renewable energy resources,» said MEP Krišjānis Kariņš after the vote on Clean Energy Act’s first reading in Strasbourg.

Would you be ready to boycott something in your life?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: