bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 19.10.2017 | Name days: Drosma, Drosmis, Elīna
LatviaLatvia

SA: apartment owners pay for Rīgas namu pārvaldnieks’ wastefulness and illegalities

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe justification behind building management fees established by Rīgas namu pārvaldnieks have no traceability, which makes the fees hard to compare with RNP’s actual expenses. On top of that, fees include expenses not relate to building management, as concluded by State Audit in a recent inspection.

SA urges apartment owners to use their rights provided by regulations to assess regular reports submitted by RNP on the use of the money paid to maintain their homes and compare them with work that was actually carried out by RNP and demand the return of money provided for unjustified expenses. SA notes that the work organization currently established in RNP forces residents to take the initiative to defend their interests, as RNP is incapable of doing that.

Auditors note – even though RNP uses the formula stated in regulations to calculate management costs, internal regulations are unclear and too general. This allows officials to freely interpret them, data sources, time periods and estimates included in the calculation of management costs. As a result, RNP’s calculations for 2014 are untraceable and cannot be compared with actual expenses.

Notable discrepancies have been noted in RNP’s accounting, because other expenses for economic activities, such as fees for mediation and paid service provision, are included in the basic management costs. In addition, apartment owners also paid for nearly all expenses of RNP that surfaced as a result of providing services not related to building management activities.

The management price includes not only unjustified and wasteful expenses, but also expenses auditors describe as illegal and ineffective. Auditors have found that the management costs include fees for 13 people who are possibly fictively employed. In 2014 and 2015 these people were paid more than EUR 190,000 in wages. SA has informed the prosecutor’s office of this particular violation. In addition, apartment owners also paid for generous benefits to employees which RNP paid after terminating their job contracts. There have also been cases in which benefits were paid after job contracts were terminated during inspections or multiple days after the end of inspections.

Actual costs of annual repairs and technical maintenance, as well as costs of grass-cutting services are not backed with documents that would demonstrate the extent of work carried out. On top of that, information provided in documents is controversial. For example, repairs were carried out without the use of necessary materials (a repairman managed to replace a light bulb without spending a single light bulb), work was carried out on weekends and holidays, people who are no longer RNP employees carried out work, work hours stated in work logs exceeds the time stated in work tables, etc.

It has also been concluded in SA’s report that RNP had included receipts for questionable business lunches and representation goods in building management costs. It is also possible that RNP had included receipts for fuel used by RNP employees for their personal needs. Apartment owners also had to pay for expenses unrelated to building management. Instead, these costs surfaced as a result of RNP’s indifference (fines for delayed payments). Violations revealed in the field of procurements provide for the possibility that RNP failed to find the most cost-effective and economically beneficial service provider.

Auditors turn attention to the fact that apartment owners are not provided with accurate information in regard to their savings. In the revenue/expenses report for 2014 RNP noted that a total of EUR 1.5 million had been used on prevention of emergencies. The audit, however, reveals that nearly one million euros of that amount had not been used at all. RNP explains that this money forms the fund for preventing future emergencies. Auditors believe RNP has been misleading apartment owners, because no information was provided to them in regard to the formation of this fund. In addition, RNP stated this money as used up in its report. Houses that refused to use RNP services in 2014 were never given back their savings.

Auditors also note that, like Rīgas Satiksme, RNP has signed a contract with Trade Union Coordination Centre. As part of this contract, the coordination centre represents only two trade unions – LABA and LABA RNP. It covers costs for cultural, recreational, sports and healthcare services to its members. It also allocates different benefits. Last year RNP transferred EUR 362,000 to this centre. Even though this money is not included in the building maintenance costs, SA notes that by providing additional benefits only to members of two trade unions, RNP has clearly breached the principle of prohibition of differential treatment. In addition, by not providing right to manage the use of allocated finances to the managing body, RNP has made it impossible to be certain that allocated money is truly used for goals stated by RNP. Certain concerns surface from the fact that the coordination centre had not spend EUR 121,000 in 2014 and did not mention this amount in its report for 2015, adds SA.

Ref: 102.109.109.6782


Leave a reply

Prime Minister: Latvia cannot accept additional asylum seekers

Latvia cannot afford to resettle additional asylum seekers, said Prime Minister Māris Kučinskis during his meeting with European Commission President Jean-Claude Juncker on Thursday, 19 October.

Scandinavians purchase tourism company in Lithuania; changes expected in Latvia too

Dutch Otravo online travel organization has expanded and has purchased Lithuanian online travel agency Interno Partneris, thereby entering the Baltic market.

Ombudsman: non-citizen status matter should be resolved in next decade

The next ten years may be the transition period to ‘put an end’ to the non-citizen status in Latvia, said ombudsman Juris Jansons in an interview to LTV programme Rīta panorama.

Swedish Foreign Minister: harassment exists at highest political level

The Foreign Affairs Minister of Sweden, Margot Wallström, has commended the current sexual assault and harassment awareness campaign in social media and urged to fellow politicians to address the problem.

Latvenergo recognized as Latvia’s most valuable company for tenth time

Latvenergo has been recognized as Latvia’s most valuable company in 2017. Its value grew 34% in comparison with 2016, according to the TOP 101 list of Latvia’s most valuable companies compiled by Prudentia and Nasdaq Riga.

Number of births and number of deaths decline in Latvia

During the first nine months of this year 15,723 babies were born in Latvia, which is 1,113 children fewer than in the corresponding period of the last year.

CC applies binding conditions for the sale of MTG Broadcasting AB

Latvian Competition Council has decided to permit Bite Lietuva to purchase MTG Broadcasting AB group’s businesses in Latvia. CC has applied several binding conditions to prevent a possible impact on competition on the television services and advertisement market.

Eesti Energia warns: Limiting CO2 emissions on capacity could endanger energy supply

Estonian energy giant Eesti Energia has evaluated that a plan under discussion in the European Union to introduce a carbon dioxide release limit for capacity mechanisms to qualify for subsidies could adversely affect the security of supply in Estonia and the Baltic states.

Solidarity tax norm recognized as non-compliant with Latvia’s Constitution

On Thursday, 19 October, the Constitutional Court of the Republic of Latvia declared the Solidarity tax norm as non-compliant with the country’s Constitution.

Survey: Riga residents go to the doctor’s the most often

34% of residents undergo regular health checks, according to Mana Aptieka & Apotheka health index. In addition, women are twice as serious about health checks as men.

LG cozies up with idea of rebuilding railway tracks to Reņģe, Latvia

Lithuania‘s Lietuvos Geležinkeliai has sent a mixed message as to what it intends to do next following an EC fine of nearly 28 million against it over the dismantling a 19-km railway stretch with the Latvian village of Rengė.

Čigāne: European Union’s social pillar is very important to Latvia

On Wednesday, 18 October, Saeima’s European Affairs Committee approved Latvia’s national position on the introduction of EU Pillar of Social Rights.

40% of all car problems are relate to lighting, battery and security systems

It has been determined that 41% of all car problems are related to lighting devices, 39% of problems are related to malfunctioning batteries, and 44% of problems are related to security systems.

Xi Jinping: Chinese socialism has entered new era

China's ruling Communist Party's five-year congress has been opened with the country's President Xi Jinping outlining a general plan for the future development of China.

Public transport in Latvia procurement may be at risk

Considering that continued and unhindered provision of public transport services on ten routes may become at risk from 1 January 2018 onward, Public Transport Council made a decision to ask the Road Directorate to sign a new contract to ensure services are available in multiple Latvian cities, as confirmed by Road Directorate.

Iraqi forces retake disputed territories from Kurdish forces

Three weeks after the Iraqi Kurdistan independence referendum, forces of the Iraqi central government have taken control of the territories in the country, which had been seized by Kurdish fighters after victories over the terrorist group «Islamic State».

Sale of MTG’s business in Baltics to Providence concludes successfully

Wednesday, 18 October, marked the successful conclusion of the sale of Baltic assets owned by Swedish media concern Modern Times Group to Providence Equity Partners. From now on companies previously owned by MTG in Baltics will function as a single organization named All Media Baltics, as confirmed by the company’s manager Pierre Danon.

Estonian port company makes 29% more revenue in January-September

Estonian state port company Port of Tallinn has made the revenue in the amount of 99.1 million euros in the first nine months of 2017, which is a 29% increase compared to January-September in 2016.

42 gambling halls to be closed down in Riga in next five years

On Wednesday, 18 October, Riga City Council supported plans to close another 33 gambling halls in the city. With that, a total of 42 gambling halls will be liquidated in the next five year.

Latvia has the highest index of female CEOs among EU member states

The highest index of female CEOs among European Union member states belongs to Latvia – 47%. In total, only 33% of CEOs in EU were female last year, according to data from the Central Statistical Bureau of Latvia.

Survey: more and more people take notice of benefits provided by EU membership

65% of Latvian residents believe the country’s membership in the European Union has brought tangible benefits. A similar opinion was voiced by 64% of residents of all EU member states in the Eurobarometer study performed by the European Parliament.

17 persons in need of international aid are relocated to Latvia from Turkey

On Tuesday, 17 October, seventeen individuals, including nine children, in need of international protection were relocated to Latvia from Turkey as part of EU resettlement programme, as confirmed by Latvian Office of Citizenship and Migration Affairs.

BATL: to avoid crisis in transit sector, government and Transport Ministry must act

Latvian Prime Minister Māris Kučinskis’ led Latvian Ports, Transit and Logistics Council also supports Saeima’s National Economy Committee’s decision on the need for Transport Ministry to develop a long-term vision for the development of the country’s transit industry.

Psychologist: six-year-old children are not ready for school

«It is wrong to believe that the sooner a child starts going to school, the better their academic results will be. Reforms are performed aggressively, without asking pedagogues or other specialists for their opinion. We lack a comprehensive analysis of the current situation that would be based on studies, not international ratings,» says certified clinical psychologist and psychotherapist Jolanta Lamstere.

Klaipeda transport ticketing system to be installed by Estonian Ridango

In the Lithuanian port city of Klaipeda, Estonian firm Ridango has been selected for installing its technology on public transport.