Following the warning issued by the prosecution office about «unfair contracts», the board of Latvian State Forests (LVM) reports having commenced a comprehensive investigation of «long-term forestry-related contracts and the legality, economic justifications, compliance with good management principles and LVM’s own interests».
The management decided to commence a comprehensive audit of the contracts and promised results would be announced publicly,
as reported by LVM board chairman Pēters Putniņš in a press-release.
The board of LVM adds in the statement: the prosecution office concluded that the signing of the long-term forestry contracts in 2013 was not an optimal process, and the institution questions if institutions subordinated to LVM have done all they could to «resolve the forestry contracts issue in accordance with principles of managing institutions and public capital associations’ operations, including in relation to the organisation of public procurements».
It is also mentioned that the decisions made by the board and council of LVM until 2013 were the cause for the existing situation with contracts and their reformation, as well as conclusions of the prosecution office.
Also read: Prosecution office takes notice of questionable contracts at Latvian State Forests