VIDEO "Seaside" threatened with insolvency: the municipal business lost half a million euros



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Screenshot of the video "Nothing Personal" of TV3.

Two years ago, TV3's "Nekā Personīga" talked about the decision of Tukums, Talsi and other seaside municipalities to manage their own garbage. At that time, municipalities claimed to be more efficient than private municipalities. The decision has been criticized by both the Ministry of Regional Development and the Competition Council, as local governments have failed in business so far. The first year has pbaded since the municipalities themselves started collecting waste and are already the first ones. The local government plan failed – the calculations were wrong, and the expected efficiency has not yet materialized, it says "Nothing personal".

At present, the municipal enterprise "Piejūra" has suffered half a million losses and is threatened with insolvency.

In addition, it turns out that his management has spent money on the purchase of expensive cars and expensive phones, rented by members of his family. The municipalities owned by the company did not control it. The bank began to alarm the company crash.

Attempts by Tukums, Talsi and seven other seaside municipalities to keep waste disposal costs low in their businesses have failed. It turns out that cheap service is provided without paying taxes and that the municipal company is on the brink of bankruptcy, says the program.

The waste treatment company Piejūra was founded in 2001. Its owners are nine municipalities. Jurmala is the main word with 35%. Talsi and Tukums account for about 20%, the other municipalities 2% to 5%.

The company manages landfills and waste sorting points built for European funds.

Some 30 million euros have been invested since 2005.

In 2017, business owners decided that they could also collect the waste of their own people. Until then, the trash was emptied by a private company selected in the contest. Municipalities indicated that they would do it more efficiently and at a lower cost. He was interviewed by the Ministry of Environment and Regional Development and the Competition Council. The Council considered that the real objective of the municipalities was to reduce financial transparency.

On June 11, 2017, the President of the Competition Council, Skaidite Abram, said: "The situation no longer surprises us. The process of conquering local governments in the waste management sector is continuing, putting an end to competition. "

Waste collection in Piejura began a year ago. The company purchased new waste containers and new machines and hired employees. Everything seemed to be on the edge – the bills were small so people could remove the manure, the cars were rolling and the garbage was collected.

The alarm that the municipal administration is heading towards bankruptcy began to build the bank early in the year.

The seaside, with debts in credit and leasing of about 3 million euros, late payments and reports show that he has big financial problems.

JSC "Swedbank" Press Secretary Janis Krops acknowledges "Neka Personalis": "The bank approached Piejūra's shareholders, the municipalities, because the bank simply began to notice more financial management problems. Since the bank has an agreement with this company. Municipalities and shareholders have guaranteed this credit. "

Does this mean that municipalities have to pay their debts instead of this business? "In any case, the bottom line is that in the municipality, it is necessary to agree on how they will continue to exploit society. We hope municipalities can agree, "said Krops.

It was only after the interests of the bank that the municipalities were involved. The test revealed that the administration of the loss-making company had bought handsets for more than a thousand euros and rented an all-terrain vehicle at nine hundred euros a month.

Part of the waste disposal technique without competition has been leased to a company owned by the director's son.

Two waste collection machines and a "Kerluc" trailer from "Seaside" received about six thousand euros a month. The owner of the company is Reinis Ruža. Until March 2014, the company belonged to his father Arnis Ružs, who until then was technical director of SIA Piejūra.

Ruza denies that the previous leadership would be blamed for wasting the company's funds. The losses are expected at the beginning of the year and are due to the need to invest in the purchase of machinery and containers. Already in December, the municipality of Tukums had been informed that 2018 would end with half a million casualties.

Arnis Ruzh, former director of "Waste Management Company Piejura", said on television: "These are the political games of the mayor of Tukums and he wants to sell this business!"

Tukums played a leading role in the waste management project. The city manager denies selfish interests and argues that shareholders did not know that the company was going badly because it had been profitable in previous years. Municipalities can not be held responsible for poor supervision.

Already the board of directors is now blamed.

Tukums City Council Chair Ēriks Lukman (for the city and county of Tukums) explains in the interview "Nothing Personal": "Inaction unconscious or perhaps even deliberate. Probably also an illegal action. Mismanagement. And possible violations of laws and regulations. Well, even basic things. Mobile phones. Value greater than one thousand euros. This situation should now be badessed against such financial indicators. Or second. Contracts for the rental of transport vehicles with a total payment of more than 26,000 euros. "

Luckmann tells us that he has managed to stabilize the company in recent weeks. No current debt. Nothing personal information indicates that the problems have not really disappeared. On the $ 180,000 tax debt, it was possible to get rid of the agreement with the Revenue Service on the deferral of payment.

At the beginning of April, the company will have to pay the next payment of the tax on natural resources, which could exceed 100,000 euros. There is no money for that.

The rescue of the company as chairman of the board of directors has attracted Eric Zaporozhye, a hardened waste business man. Jānis Lediņš (ZZS), a member of Jurmala City Council, took him to Tukums.

"I knew him for a long time, so I offered him, he agreed to see him, it seemed interesting to him, he knew how I had worked in Hoetika and in the service of the environment, everywhere and he is familiar with the area, and we are waiting for what Mr. Zaporozhye will have badyzed this month and what he will propose to us, for the moment I do not know if the money will help us. , the setting was the one that should be done to maximize the interference of the county council with its own resources. "

Glacier and Eric Zaporozhye are united by political interests.

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In the 2014 elections in Saeima, Zaporozhye left the list of Green Farmers Union, but was not in parliament. In 2017, his attempt to enter the Jelgava City Council was equally fruitless. Zaporozhye for the seaside and his future is optimistic. Although municipal leaders say that he is a temporary manager and that he will be competing, Zaporozhye is confident that the company will be put in order and that it will work there for five years.

This week, the nine municipalities will meet again to decide how to get society out of trouble. For now, neither the shareholders nor Zaporozhye indicate whether the municipalities will bear the losses and how much the cost of waste disposal will increase for the population.

More on the video.

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