Municipality of Šiauliai with arena concessions in the court of arbitration



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The municipality states that it was decided in a commercial arbitration institution because the concessionaire terminated negotiations with the municipality due to changes in the concession contract

"Me and the mayor hoped for a quick and constructive cooperation.There is no other way, just to argue, because we must defend the public interest ", – said Antanas Bartulis, director of the administration of the municipality of the city of Šiauliai.

The municipality and "Pramogas sala", which controls more than a decade, disagree on the nuances of the accounting and the concession fee charged to the municipality, which raises to 214 thousand a year. euro

The municipality indicates that the company, in 2015, has not included more than 20 thousand. The euro insurance payments for Snoras bankruptcy securities ended in a year of loss, leaving the municipality to be liable for a concession fee. According to the municipality, the company has been in deficit since 2011.

"If the money was properly registered, the company manager of the arena could claim the concession fee paid by the municipality," said A Bartulis

. that in 2011, Entertainment Snoras transactions were recognized as criminal offenses and that the director of the arena Gintaras Radavičius was convicted as a final and undeclared decision.

The heads of the Šiauliai administration addressed corrections to G. Radavicius. According to the report, the concessionaire received an explanation from the Department of Finance that the claims were well-founded, as evidenced by Magnusson's lawyers who clarified the situation, "says the report.

Thousands of euro concessions will pay and interest of 18 thousand euros.

Šiauliai Arena was opened in 2007. Its management was entrusted to the sole operator of the call for tender – the public institution "Pramogas sala".

Director of the Arena: the negotiations are not interrupted, only suspended

G.Radavicius, general manager of the Entertainment Arena, underlines that the negotiations on any modifications of the contract are not interrupted but only suspended until explanations are given. can be changed. According to him, the Lithuanian Court of Appeal decided last week to continue negotiations and only negotiated the failure to resort to commercial arbitration. "We have written that we have suspended the negotiations on the amendments until we resolve the legal disputes.Secondly, we have always said that we should contact the Ministry of Finance, the Ministry of Economy, the Public Procurement Office, because they insisted on the agreement, in order to confirm the framework in which it could be changed. "19659005] and the moral damage" at the initiative of the municipality by means of interim measures imposed by the court, ie it was not possible to dispose of his accounts for three months, the arrest was made last Friday.

"We We did not stop the negotiations, we only stopped them. This information is false. How can we negotiate something when we have stopped accounts that do not allow malware to work?

He hopes that the arbitration will not accept the complaint of the municipality until the conclusions of the experts of the ministries have been received.

G. Radavicius said that in 2015 the loss of the institution had risen to 15 thousand. and the municipality "counted arithmetically" that if the insurance premium was included in the 2015 accounts, the institution would have worked in a cost-effective manner, ie. there to receive 5 thousand profits G.Radavicius disagrees with this position, according to him, the lawyers clarified that this amount had not been received from the concession business, therefore, even though he was included in 2015, it would not be calculated as a profit.

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