Eastern border renovation companies will turn to courts claiming that Interior Ministry pay debts
Interior Ministry^apostrofs;s proposals are unacceptable to construction companies involved in the eastern border renovation projects, which is why the companies will turn to courts asking that the ministry observe its liabilities and pay debts, attorney-at-law Romualds Vonsovics told reporters yesterday.
Interior Ministry's proposals are unacceptable to construction companies involved in the eastern border renovation projects, which is why the companies will turn to courts asking that the ministry observe its liabilities and pay debts, attorney-at-law Romualds Vonsovics told reporters yesterday.
Every company will act on its own, there will be no joint claim, Vonsovics said. None of the 17 border construction contracts has been terminated, he stressed. The construction companies' negotiations with the ministry took five months; during these five months all the construction companies observed their contractual obligations but not the contracting authority.
During the negotiations thus far, it has been proposed that most construction work be postponed until 2005, but there is no guarantee that the situation will change by that time, Vonsovics said.
Viktors Purins, president of the Latvian Construction Association, believes that the current policy pursued by the state is against the development of the construction business. "Businessmen in this sector have been made into fraudsters," he believes, while in fact it is the state that ignores its liabilities and does not pay for services it receives.
Although the state has not paid the construction companies, the State Revenue Service demands taxes for the completed construction work. If the taxes are not paid, the companies will become tax debtors and will no longer be able to participate in state and municipal commissions, Vonsovics said.
The construction companies have to use their own funds to pay workers and taxes, although the state owes them, Purins stressed. The construction companies earlier accepted the government's proposal to step down some projects because of austerity measures, but this must stop - if the state has no money it should admit it cannot pay, Purins said.
The total amount of the eastern border renovation contracts is LVL 21 million. If the contracts are terminated, the state will suffer loss of about LVL 4 million, Vonsovics said.
Kaspars Martinsons LETA
Copyright © LETA
Every company will act on its own, there will be no joint claim, Vonsovics said. None of the 17 border construction contracts has been terminated, he stressed. The construction companies' negotiations with the ministry took five months; during these five months all the construction companies observed their contractual obligations but not the contracting authority.
During the negotiations thus far, it has been proposed that most construction work be postponed until 2005, but there is no guarantee that the situation will change by that time, Vonsovics said.
Viktors Purins, president of the Latvian Construction Association, believes that the current policy pursued by the state is against the development of the construction business. "Businessmen in this sector have been made into fraudsters," he believes, while in fact it is the state that ignores its liabilities and does not pay for services it receives.
Although the state has not paid the construction companies, the State Revenue Service demands taxes for the completed construction work. If the taxes are not paid, the companies will become tax debtors and will no longer be able to participate in state and municipal commissions, Vonsovics said.
The construction companies have to use their own funds to pay workers and taxes, although the state owes them, Purins stressed. The construction companies earlier accepted the government's proposal to step down some projects because of austerity measures, but this must stop - if the state has no money it should admit it cannot pay, Purins said.
The total amount of the eastern border renovation contracts is LVL 21 million. If the contracts are terminated, the state will suffer loss of about LVL 4 million, Vonsovics said.
Kaspars Martinsons LETA
Copyright © LETA
