On Wednesday, the 2nd of October, Saeima’s Parliamentary Inquiry Committee rejected the request from opposition party Combined List (AS) to Prime Minister Evika Siliņa on the government’s plans for Latvia’s national airBaltic airline. Nevertheless, the opposition still criticised the PM for dodging questions.
AS faction leader Edgars Tavars mentioned at the meeting that during the faction’s meeting with Minister of Transport Kaspars Briškens, members of the party did not receive any clarity as to whether or not Latvia will be able to recover invested funds. This is why members of the opposition turned to the PM with a request.
Saeima deputies wanted to know about the possible scenarios for actions with airBaltic and who came up with those scenarios.
Deputies were also interested in the role of the Prime Minister when the government adopted the specific scenario of a possible reduction of airBaltic’s share capital. Politicians wanted to find out how long ago the PM had information about a possible reduction in the share capital of airBaltic, and whether there were decisions made by the Cabinet of Ministers had already been made in the past in this regard.
Politicians also wanted to find out whether any minister has objected in the vote on the reduction of the share capital, as well as whether the PM agreed with the opinion that the decision to reduce the share capital had to be made by the Saeima, taking into account that previous investments in the share capital were decided directly by the legislator.
Parliamentary Secretary to the Ministry of Transport Ģirts Dubkēvičs (P) emphasized that a decision on the reduction of the airline’s share capital has not yet been made, that is,
the process has been started, but it has not yet been completed.
According to the representative of the ministry, the issues regarding airBaltic include an important trade secret, and given the ongoing negotiations with a potential strategic investor, the government decisions made on the 30th of August cannot be made public until the initial public offering process has been successfully completed.
Tavars said he wanted to receive a clear answer as to airBaltic’s real value.
Dubkēvičs said the company’s value is determined by the market, and until now airBaltic shares have not been listed on the stock exchange.
Saeima deputy Linda Liepiņa criticised government representatives for “once again” preparing superficial answers at the last moment. The opposition politician said she did not receive confidence the PM is in charge of the situation.
Tavars was of similar mind, commenting that questions were addressed to the PM, but the meeting was not attended by a single member of the prime minister’s office. AS did receive a letter from the PM, but it contained to solid answers, he stressed.
On the 2nd of September, information was posted on Firmas.lv website that, in preparation for the initial public offering, Latvian national airBaltic airline’s base capital will be lowered by EUR 571.293 million and the company’s share structure will be simplified.
The airline’s representatives told LETA on the same day that on the 30th of August the management discussed topics related to airBaltic’s preparation for IPO.
The Prosecutor General’s Office has commenced an investigation into the Latvian government’s decisions with airBaltic.