Without New Subsidies Rigas Satiksme Municipal Transport Company May Face Insolvency in March

Rigas Satiksma municipal public transport company may face insolvency in March without new EUR 37 million subsidies, said Rigas Satiksme acting CEO Anrijs Matiss in an interview with Ir magazine, referred LETA. The city’s budget has not yet been adopted, therefore municipal companies receive one 12th of last year’s basic budget monthly, and in the case of Rigas Satiksme it is EUR 8.35 mln, which is about EUR 100 mln a year, The Baltic Course reported. “We cannot live with this budget,” said Matiss, adding that at least EUR 137 mln a year would be needed for the company to survive, including EUR 16.7 million already in March. Ernst & Young has conducted an audit in Rigas Satiksme. Matiss said that the auditors’ report show that about EUR 6 mln have been overpaid in a fuel procurement with a company whose owners are hidden in offshores. Read more