Riga City Council has taken a risk and has signed a contract worth EUR 15 million with a company that is part of Ceļu pārvalde JSC. The company in question has a standing tax debt of nearly EUR 750 000, as reported by TV3 programme Nekā personīga, reminding that the law in Latvia prohibits entrusting procurements to companies with significant tax debts.
The contract covers the construction of a new overpass in Sarkandaugava. This overpass is intended to connect Tvaika Street with Kundziņsala. The construction project is divided into three phases: construction of a new intersection on Tvaika Street in the first phase, construction of the bridge in the second, and creation of required infrastructure with access roads and a checkpoint in the third phase.
The tender for the first phase of reconstruction on Tvaika Street was announced on 24 December 2021. A total of three offers were received. The cheapest one was picked, submitted by BMGS and Ceļu pārvalde. The offer was to reconstruct Tvaika Street for a price of EUR 15 097 990. The decision to declare BMGS and Ceļu pārvalde as winners was signed on 14 October 2022.
Riga City Council deputy Valters Bergs said Ceļu pārvalde has considerable tax debts now, and this is not the first time.
Databases of the State Revenue Service (VID) indicate that in spring, when Ceļu pārvalde submitted its offer, the company had no tax debt. However, in summer of the same year the company’s tax debt reached EUR 360 000.
The day after the decision was made to pick BMGS and Ceļu pārvalde as the winners the tax debt disappeared. However, 15 days later it reappeared again. This continued until 14 October, when the contract was finally signed.
On the day the contract was signed the total debt of Ceļu pārvalde was EUR 378 494. Since then it has continued to grow. According to the last notification submitted to VID, as of 1 November Ceļu pārvalde tax debt was EUR 747 582.
Acting director of Riga City Council’s Transport Department Jānis Vaivods explained the company had no tax debts when it was inspected, adding that such inspections are not required to be repeated. He also mentioned that the situation has been discussed with the company itself. Representatives promised to «resolve this situation».
Ceļu pārvalde board chairman is Adigjozals Mamedovs, who is also listed as the company’s beneficial owner. His name was previously mentioned when the State Audit reported that the state had overpaid when renting ambulance carriages from Mamedovs’ owned company Rīgas Sanitārā transporta autobāze.
Many years ago Ceļu pārvalde was a structure owned by Riga City Council. Nine years ago, when Mamedovs’ son was a member of the party of then the vice-mayor of Riga Andris Ameriks, Mamedovs’ company bought Ceļu pārvalde, the programme reports, adding that the company not only participated in multiple construction projects in the capital city, but was also entrusted with street maintenance work on the left bank of Daugava River.
«In this particular case regulations were complied with. There are not reasons for concern about the company’s ability to fulfil contractual obligations. The issue regarding the tax debt will be resolved soon. The company proved its reputation as a stable and reliable partners in the years it has worked together with Riga City Council’s Transport Department, Latvian State Roads and other state and municipal companies,» the company wrote in a response e-mail.
Mayor of Riga Mārtiņš Staķis promised to request information from the Transport Department about this case and follow the situation very closely.