"Skanska" says it left Latvia and Lithuania due to corruption
The Nordic construction company "Skanska" has left the Latvian and Lithuanian markets as they were "too corrupt," but the company will continue to operate in Estonia as there are no such problems there, said "Skanska^apostrofs;s" managing director Stuart Graham.
The Nordic construction company "Skanska" has left the Latvian and Lithuanian markets as they were "too corrupt," but the company will continue to operate in Estonia as there are no such problems there, said "Skanska's" managing director Stuart Graham.
Real estate specialists, though, have doubts about the statement's veracity.
Graham said in a speech at the New York Swedish Chamber of Commerce that "these countries [Latvia and Lithuania] were unable to behave in line with our code of ethics" and that "we don't have time to revamp countries," the Swedish newspaper "Dagens Industri" reports.
Initially "Skanska" said that it left Latvia and Lithuania since it wanted to focus on its main markets; now Graham admitted that the company was not successful in these countries due to the corrupt construction market, the Estonian business newspaper "Aripaev" reports.
Graham did not, however, cite any specific examples of the problems in Latvia and Lithuania.
"Skanska AB's" spokesman Peter Gimbe specified, when speaking to "Aripaev", that it was difficult to conduct business in Latvia and Lithuania. "We want to do things by adhering to rules and legally, but it was difficult to be competitive this way," he said.
Gimbe said that even though corruption is a problem in Estonia too, the company intends to continue operating here, as its market situation is strong here as well profitability. "True, we didn't manage to achieve such a position in Latvia or Lithuania," Gimbe said.
"I would like to believe that the situation is better in Estonia," said "Skanska AB's" Estonian subsidiary "Skanska EMV" board chairman, Jaanus Otsa. As far as he knows, "Skanska" did not leave Latvia and Lithuania forever, he said.
Veljo Kuusk, head of investments in "Arco Vara Group", which operates in real estate development in Latvia too, said that he does not believe "Skanska" left the Latvian and Lithuanian markets due to corruption problems.
"Where could there be corruption in construction? One possibility is state procurement tenders, where the best price bidder is the winner. And private customers are interested in the best price-quality ratio. It was more likely "Skanska's" strategy," Kuusk said.
Kuusk estimated that Latvian and Lithuanian construction markets are not more corrupt than the Estonian market. "I think that for "Skanska" the market was just too small. They were at the market and managed well there," Kuusk said.
"Skanska" sold its subsidiaries and real estate in Latvia and Lithuania last summer.
Real estate specialists, though, have doubts about the statement's veracity.
Graham said in a speech at the New York Swedish Chamber of Commerce that "these countries [Latvia and Lithuania] were unable to behave in line with our code of ethics" and that "we don't have time to revamp countries," the Swedish newspaper "Dagens Industri" reports.
Initially "Skanska" said that it left Latvia and Lithuania since it wanted to focus on its main markets; now Graham admitted that the company was not successful in these countries due to the corrupt construction market, the Estonian business newspaper "Aripaev" reports.
Graham did not, however, cite any specific examples of the problems in Latvia and Lithuania.
"Skanska AB's" spokesman Peter Gimbe specified, when speaking to "Aripaev", that it was difficult to conduct business in Latvia and Lithuania. "We want to do things by adhering to rules and legally, but it was difficult to be competitive this way," he said.
Gimbe said that even though corruption is a problem in Estonia too, the company intends to continue operating here, as its market situation is strong here as well profitability. "True, we didn't manage to achieve such a position in Latvia or Lithuania," Gimbe said.
"I would like to believe that the situation is better in Estonia," said "Skanska AB's" Estonian subsidiary "Skanska EMV" board chairman, Jaanus Otsa. As far as he knows, "Skanska" did not leave Latvia and Lithuania forever, he said.
Veljo Kuusk, head of investments in "Arco Vara Group", which operates in real estate development in Latvia too, said that he does not believe "Skanska" left the Latvian and Lithuanian markets due to corruption problems.
"Where could there be corruption in construction? One possibility is state procurement tenders, where the best price bidder is the winner. And private customers are interested in the best price-quality ratio. It was more likely "Skanska's" strategy," Kuusk said.
Kuusk estimated that Latvian and Lithuanian construction markets are not more corrupt than the Estonian market. "I think that for "Skanska" the market was just too small. They were at the market and managed well there," Kuusk said.
"Skanska" sold its subsidiaries and real estate in Latvia and Lithuania last summer.
