PSKUS: the previous board was wrong – should have terminated contract with Velve sooner

Following the request from P.Stradins Clinical University Hospital (PSKUS), Ellex Kļaviņš law firm performed an assessment of the responsibility of the hospital’s previous board members. The conclusion is that members of the board did not act appropriately, as the contract with Velve LLC should have been terminated sooner, says PSKUS consultant Gundega Vārpa.
According to the report from Ellex Kļaviņš, the fact that the previous board of PSKUS failed to ensure a timely delivery on the contract from Velve LLC and was slow to terminate the contract with the company when it became clear the contract would not be implemented on time, can be considered an act of negligence.
Looking at the actions of the previous board of the hospital, the law firm mentioned in its report that the board’s actions in relation to the project for the construction of a new building were inappropriate. However, the most serious criticism to the board could be its failure to respond to factors that delayed the implementation of the contract and failure to unilaterally terminate the contract.
According to experts, since June 2023 Stradins Hospital board had ample legal reason to unilaterally terminate the contract, because it was clear that Velve LLC will not be able to complete the contract on time.
The decision of the previous board to not terminate the contract and continue it impacted the construction process, and this decision cannot be considered action of a good and caring host.

The report was submitted to the Prosecutor General’s Office, Vārpa notes.

The previous board of the hospital should be made to compensate the losses that appeared as a result of not unilaterally terminating the contract in a time when a justified reason for that first appeared. The exact extent of losses should be calculated, stresses Vārpa, referencing the report from Ellex Kļaviņš law firm.
As previously reported, the previous board of Stradins Hospital was removed on the 27th of October 2023, when the interim council held a no-confidence vote for chairman Rinalds Muciņš and board members Ilze Kreicberga, Jānis Naglis and Agra Melne.
Velve and PSKUS representatives are planning to meet on Monday to resolve the issue with the construction of the hospital’s A2 ward, as LETA was told by Velve representatives.
On Friday, the 16th of February, Velve mentioned during the meeting that the way PSKUS wants to terminate the legally signed contract with the construction company, unjustifiably accusing the company of failure to complete the contract is unacceptable and Velve does not agrees with it.
Velve also informed PSKUS that if the client does not want to continue cooperation with the contracted company, the termination of the contract in such cases can be legally enforceable by agreement of both parties.
PSKUS legal representative mentioned that this topic should be assessed. Both sides should agree on a new meeting on Monday.
Previously it was reported that Velve does not agree with PSKUS decision to unilaterally terminate the contract. The company considers this unlawful. A letter of objection was sent to the client. The main reasons why the company is behind on terms is the poor quality of the project. A number of changes have been added to documents related to the construction project since 2021. However, all necessary technical solutions still haven’t been developed.
On Tuesday, the 13th of February, the contract between PSKUS and Velve was terminated. The hospital expects to take over the new A2 ward in five days’ time, by the 20th of February.
Also read: Stradins Hospital scandal continues. Management may ask police to intervene
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