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Wednesday 21.08.2019 | Name days: Linda, Janīna
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Latvian Railway removes scandalous board members. Temp board members take office

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU

Board chairman Edvīns Bērziņš and board member Aivars Strakšas left Latvian Railway (LDz) on Monday, 12 August. Two temporary board members Māris Kleinbergs and Andris Lubāns took office the same day.

Previously Kleinbergs worked as board chairman and CEO at SIA Schenker, board chairman of Latvian Post, director in Baltic Logistics Solutions, logistics director at Avers Centrs, as well as Latvian office manager for Kuehne&Nagel Latvija.

Lubāns worked as board chairman and secretary general for Latvian international road carriers association Latvijas Auto, was in charge of Riga City Council’s Transport Department director’s office. Between 2014 and 2017 he was board chairman of railway passenger transport company Pasažieru vilciens and between 2012 and 2014 he was in charge of Transport Ministry’s road traffic department.

BNN had previously reported that earlier in July LDz council had decided on terminating work relations with Bērziņš and Strakšas. Ēriks Šmuksts and Ainis Stūrmanis remain in the company’s board.

«Considering that a situation has formed when there is no active dialogue between the heads of the company, the ministry and the company’s board, the decision has been made to put an end to this uncertainty and start moving forward,» Lange said after a meeting of LDz council. BNN had also reported that in May 2019 Latvia’s Transport Minister Tālis Linkaits had voiced no confidence to Bērziņš, Strakšas and Stūrmanis, proposing their dismissal.

The latter, however, has managed to preserve his seat in LDz.

The minister said the main points of criticism he has are associated with possible distortion of competition, which risks possible consequences for LDz and Latvia as a whole.

The ministry also has information regarding possible corruption. This information has been passed to Corruption Prevention and Combating Bureau (KNAB). On top of that, several large financial deals associated with marketing and advertisement worth several million euros have been found, prompting the government to believe the board has not acted as a serious and responsible manager.

LDz board members, on the other hand, said that Linkaits’ statements about the company’s management are aimed at preparing LDz for privatization. Bērziņš and Strakšas also went as far as asking State Police to commence a criminal process against Linkaits for defamation.

LDz is a public use railway infrastructure maintenance company and the leading company of Latvian Railway concern. The company has six subsidiaries – LatRailNet, LDz Cargo, LDz Infrastructure, LDz Rolling Stock Service, LDz Security and LDz Logistics.


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