Latvian economics minister unexpectedly sacks state-owned energy company's board

0 Comment(s)Print E-mail Xinhua, June 20, 2019
Adjust font size:

RIGA, June 19 (Xinhua) -- Latvian Economics Minister Ralfs Nemiro on Wednesday unexpectedly sacked the supervisory board of the state-owned energy company Latvenergo, local media reported.

While critics suspected political motives behind the reshuffle, Nemiro said the Latvenergo board had not been working hard enough to conquer new markets and reduce power distribution tariffs.

The minister replaced the dismissed Latvenergo board with an acting board, which includes his adviser, the head of his office and three business executives.

Latvian Prime Minister Krisjanis Karins said on Twitter that the economics minister's decision to replace the Latvenergo board was rushed, ill-considered and inconsistent with principles of good governance.

"I am demanding the minister's explanations," Karins said.

Other politicians from Latvia's center-right government coalition, including Justice Minister Janis Bordans, also voiced surprise at Nemiro's move, saying they did not see sufficient reason for sacking the entire board.

Andris Grafs, head of the Baltic Institute of Corporate Governance, described Nemiro's decision unreasonable and politically motivated.

Responding to the allegations, Nemiro denied having installed "his people" on the board. He also underlined that this is a caretaker board which later will be replaced with a permanent one.

"The new board will have to work very busily on measures to cut power distribution tariffs. Conquering new markets is another task, because this is what Latvenergo should be doing to generate more budget revenue in foreign markets," Nemiro said, noting "Latvenergo might earn more profit by doing business in Lithuania, Estonia and Poland."

He added that a tender would be called within a month to appoint a new supervisory board. Nemiro wants the Latvenergo board to consist of professionals, each in charge of a particular sphere like finance, green energy and foreign markets.

Latvenergo is a state-owned energy group whose shares are held by the Economics Ministry. Latvenergo closed 2018 with 878 million euros in turnover and 76 million euros in profit.

Latvenergo generates and sells electric and thermal power and provides power distribution services. (one euro currently equals to 1.12 U.S. dollars) Enditem

Follow on Twitter and Facebook to join the conversation.
ChinaNews App Download
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from