Latvia’s Competition Council (KP) reports having identified a secret agreement involving three – regional bus network-related – public transport service providers. Companies have been applied with a fine worth nearly EUR 2 million.
KP uncovered violations of the Law on Competition and the Treaty on the Functioning of the European Union. KP plans to report on the decision regarding the prohibited agreement that affects the regional bus market at a press conference on Wednesday, the 18th of January. The press-conference will be attended by KP chairman Juris Gaiķis and KP Prohibited Agreements Department director Ieva Šmite.
Road Transport Administration (ATD) representatives said that regulations of the Public Procurement Law that provide for exclusion of contenders found guilty of breaching competition law are not applicable to already signed procurement contracts. This means
ATD has no right to terminate signed procurement contracts based solely on decisions made by KP.
ATD board chairman Kristians Godiņš told Latvijas Radio programme Krustpunktā on Tuesday, the 17th of January, that the directorate is prepared to act. According to Godiņš, KP’s decision will come into force in relation to a company with which it was planned to sign a contract, but now it will not be allowed. The company in question will not be allowed to participate in the nearest planned procurement as well.
Liepāja Bus Park JSC board chairman Leonīds Krongorns said: KP’s decision will affect this company. This is why the company intends to study the decision of the council in order to provide more detailed comments later.
«Liepāja Bus Park JSC complies with all requirements of the law and denies any accusations of breach of competition rights or the Competition Law. Once the full text has been appropriately studied, the company will decide on using applicable measures to protect our interests and prove our innocence,» the company stated.
In 2021 Liepāja Bus Park’s turnover was EUR 15.406 million, which is 41% more when compared with 2020. The company’s profits increased multiple times, reaching EUR 3.603 million. The company was registered in 1995.
34.85% of the company’s shares are owned by Liepaja municipality and 59.83% of shares are owned by LAP1R LLC, which, according to information from Firmas.lv, is indirectly owned by Andris Šķēle’s (67%) and Ainārs Šlesers (33%) family.