Liquidation of municipal foundation Riga.lv, which currently works with losses worth EUR 235 000, could take seven to eight months, according to what Riga City Council Property Department head Aija Rimicāne said on Monday, 1 July.
On 1 July, the committee unanimously supported liquidation of the foundation and decided to propose this topic to be discussed in Riga City Council.
According to documents added to the meeting’s agenda, the foundation’s board members Andris Konošonoks and Ģirts Dripe had turned to then the Mayor of Riga Tainis Turlais with a proposal to initiate Riga.lv liquidation in June.
This decision came as a result of the inspection performed by State Audit, which mentioned that, considering uncovered violations, misuse of municipal finances, doubling functions with other municipal institutions, as well as insufficient control over Riga.lv and Riga Tourism Development Bureau, it was recommended to consider the worth for the municipality to maintain foundations.
Documents also mention that the decision was made also based on statements made by representatives of the ruling coalition in regards to plans to liquidate the foundation.
According to Rimicāne, the board will be responsible for the liquidation. The process itself will take approximately eight months.
During the period of time it is planned to make an entry to the company’s database in the Enterprise Register, divide property, satisfy creditors’ requests, and other necessary activities.
This year it was planned to allocate EUR 1.77 million grant to the foundation from the municipality’s budget.
So far the foundation has received EUR 400 000 of that amount. According to Rimicāne, the foundation currently works with losses worth EUR 235 000.
Answering deputies’ questions as to who will cover these costs, Rimicāne said that the board will decide on the method for the liquidation process – either file for insolvency or commence self-liquidation.
As previously reported, Riga City Council’s opposition had made several attempts to liquidate Riga.lv in the past. At first, the ruling coalition decided to postpone evaluation of the foundation’s work until autumn. When he took office, then the Mayor of Riga Dainis Turlais said he is prepared to amend the city council’s decision and discuss the possibility of the foundation’s liquidation sooner. He had also reached an agreement with the board of Riga.lv.
Riga.lv was founded in 2013. Since then the opposition has asked many questions about the usage of finances by this foundation, as well as its unclear functions, questioning if the main function of Riga.lv could be promotion of the ruling coalition.
It was also reported that the State Audit had concluded in its inspection that it is possible that in three years more than 20 million of taxpayers’ money had been wasted associations and foundations. Auditors mainly pointed towards two municipal foundations – Riga Tourism Development Bureau and Riga.LV.