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Buildings in Riga's Old Town cannot be privatized for vouchers alone - LPA : building.lv - par būvniecību Latvijā

Buildings in Riga's Old Town cannot be privatized for vouchers alone - LPA

The Latvian Privatization Agency (LPA) stresses, in commenting on the New Era^apostrofs;s concerns about suspicious privatization of several buildings in Riga^apostrofs;s Old Town, that no building has ever been privatized for privatization vouchers alone, and that the proportion of means of payment is either set by the government or the LPA itself, in accordance with respective regulations.

The Latvian Privatization Agency (LPA) stresses, in commenting on the New Era's concerns about suspicious privatization of several buildings in Riga's Old Town, that no building has ever been privatized for privatization vouchers alone, and that the proportion of means of payment is either set by the government or the LPA itself, in accordance with respective regulations.

During a press conference today, Viktors Sadinovs, deputy chairman of the LPA board, rejected the New Era's concerns that the move on privatization of several buildings in Riga's Old Town was suspicious.

According to regulatory enactments, privatization of state-owned property can be proposed by any legal entity or individual, Sadinovs said. In this particular case, "P Sistemas Ltd." has proposed that eight buildings in Riga's Old Town be privatized.

The law stipulates that LPA, after receiving privatization proposals and reviewing the required documents, draws up a respective government's draft decree. "P Sistemas" has not shown any particular interest in the above buildings, Sadinovs said.

The draft decree prepared by LPA is then submitted to the Ministry of Economy that then forwards it to state secretaries' meeting. After that, the project is coordinated among ministries and other institutions. The draft is then reviewed by the government's committee, and, finally, by the government, that decides which of the objects included in the draft will be privatized, and what the privatization procedure will be.

If the government does not set the proportion for means of payment, LPA does it itself, according to respective regulations. In privatizing buildings in Riga, 80 percent of the price are to be paid in lats, 20 percent - covered by privatization vouchers. If there are any other conditions, 60 percent of the price are to be paid in lats, the rest - in vouchers.

The New Era has said that it has no proof that the buildings will indeed be sold for vouchers, however, this is suggested by past experience and unofficial information, the party said.

According to information that the government has made public, a draft decree was approved at a meeting of state secretaries on September 12, which envisages launching privatization procedures for 13 buildings, including 1/3 Meistaru Street and 7 Smilsu Street, 3 Skolas Street, 10/12 Meistaru Street, 9 Valnu Street, 12 Smilsu Street, 2/4 Marstalu Street, 50 Kaleju Street, 11 Miesnieku Street and 3 Reriha Street.



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