bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 25.09.2018 | Name days: Rauls, Rodrigo
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

PHOTO: Pope Francis visits Riga Cathedral and meets seniors at St Jacob’s Cathedral

Pope Francis visited both Riga Castle and Riga Cathedral, where a service was held under his supervision. There he met with different Latvian officials. After that, the pope met with senior citizens at St Jacob’s cathedral.

Pope Francis arrives in Latvia for an official visit

Pope Francis arrived in Latvia on Monday, 24 September. He was greeted at the airport by President Raimonds Vējonis, Archbishop Zbigņevs Stankevičs and other public figures.

Week in Lithuania. President proposes amendments to restrict bailiffs' remuneration

Lithuanian President Dalia Grybauskaitė is putting forward amendments aimed at restricting bailiffs' financial remuneration to up to 15 per cent of the amount recovered.

BNN summary of the week: pre-election heat, rule of law in Latvia, Baltics prepare for Pope’s visit

BNN offers a summary of this week’s topical news in a variety of categories: Elections; Change; Stagnation; Fight; Visit; Investigation.

Court reschedules viewing of criminal case due to Non-citizens Congress leader’s poor health

Riga City Vidzeme Suburb Court announced today that the viewing of the criminal case in which leader of Non-citizens Congress Aleksandrs Gapoņenko is accused of inciting national hate will be postponed to a later date.

Producer prices in industry up 1.0% in Latvia in August

Compared to July, level of producer prices in the Latvian industry rose by 1.0 % in August 2018. Level of prices of products sold on the domestic market grew by 1.9 %, but of exported products – went up by 0.1 %.

Bishop: priest suspected of sexual abuse to be operated on in hospital

Pāvels Zeiļa, who is a priest of Rezekne Aglona diocese and the suspect in the criminal case regarding sexual violence and human trafficking, will undergo a complicated surgery on Friday, 21 September, as reported by Bishop Jānis Bulis.

Study: residents withdraw money from ATMs less often but in larger amounts

Every now and then discussions about dropping cash money altogether become active in society, AS PrivatBank representatives say.

HND Grupa design company, involved in Zolitude tragery, declared insolvent

Building engineer Ivars Sergets company HND Grupa, which was involved in the case revolving around the Maxima supermarket that collapsed in Zolitude, killing 54, not five years ago, has been declared insolvent, as reported by Latvijas Avīze.

Deputy Chief of State Fire and Rescue Service suspected of misappropriation

Latvia’s Interior Affairs Ministry’s Internal Security Bureau has detained deputy chief of State Fire and Rescue Service Ints Sēlis and one other official – a senior inspector, as reported by Panorāma programme of LTV.

Washington sanctions China for buying Russian military equipment

U.S. government has introduces sanctions against the Chinese army over a purchase of fighter jets and missile systems from Russia, despite a U.S. sanctions law targeting Moscow for attempts to sway in the 2016 U.S. election.

Autumn expected to begin soon in Latvia

Friday, 21 September, is expected to be warm in Latvia. Sun and considerable amount of clouds are expected, but not precipitation. Wind will draw in from the south, reaching a speed of 15-17 m/sec in western and central regions, as reported by Latvia’s Environment, Geology and Meteorology Centre.

Brexit: a finish line with no end in sight

Less than 200 days are left before Britain officially leaves the European Union. The state of the agreement between Britain and EU only serves to create more chaos, from which neither Britain nor EU, or even Latvia will benefit.

EU underlines to London: No-deal Brexit also option

European Union's top officials and member state leaders planned to push for a Brexit deal in October, while urging London to give ground on the issues trade and the Irish border by November, to avoid a no-deal Brexit.

Lithuanian PM, a presumable presidential hopeful, set to curb grocery price growth

Having chastised food retailers on many occasions for high grocery prices, Saulius Skvernelis, the Lithuanian Prime Minister, stepped forward in the bid to harness local supermarkets. The presumed presidential candidate of the ruling Farmers and Greens (LVŽS) has summoned this week executives of major retail food chains, scolded them and reaffirmed his pledge to rein in the edging up prices.

Industrial prices in Estonia – up by 3.4% on year

The industrial price index in Estonia has risen from August 2017 to August this year by 3.4%, official statistics show.

Latvian parliament approves transition to competence-based approach in education content

On Thursday, 20 September, Latvia’s Saeima approved in the final reading amendments to the Education Law, necessary for the gradual introduction of competence-based approach in education materials.

Latvian Saeima wants to disallow shareholders to work in company management board

On Thursday, 20 September, Saeima approved in the first reading amendments to the Credit Institutions Law that provide for multiple measures to enhance Latvia’s finance system and its long-term stability, as reported by the parliament’s press-service.

Aglone Council prohibits residents from organizing protests during Pope Francis’ visit

A protest against the Catholic Church’s ban on abortions and expression of shock in relation to the recent sex scandals involving Catholic priests was planned to take place in Aglone during Pope Francis’ visit, but the city council decided to disallow them.

Latvian parliament conceptual supports pension bonus indexation

On Thursday, 20 September, Saeima supported in the first reading several initiatives for a more rapid pension climb for several groups of pensioners, as reported by Saeima press-service.

Majority Saeima deputies support open president vote; UGF members fail to decide unanimously

On Thursday, 20 September, amendments to the Constitution regarding open election of the state president were approved in the second reading.

Four Estonian parties have strong support, enough to enter Riigikogu

Four Estonian parties are believed to currently have enough support to enter the Estonian parliament, a broad opinion poll showed, as leading parties compete for voter backing.

Vitol Group concerned over state of rule of law in Latvia; turns to state officials

One of the largest energy resource traders in the world – Vitol Group – has sent a letter to Latvia’s highest ranking officials, expressing deep concern over the rule of law and application of legislative acts in the litigation between LatRosTrans and Polocktransneft Druzba over the EUR 66 million worth technological oil.

As Pope heads to Baltics, more attention to Catholic sex abuse

The time, when Roman Catholic Pope Francis is set to visit the Baltics, greatly differs from the visit by Saint John Paul II in 1993. There is public resentment over the countries spending several million euros to host the trip of the pontiff and the Catholic sex abuse scandals are topic of discussion.

Officials asked to take responsibility for misuse of state resources

If misuse of state resources takes place, officials have to take responsibility and pay for the damages caused to the state, says Public Expenditure and Audit Committee chairman Andris Bērziņš.

Newest comments