On Thursday, December 4, the Finance and Administration Affairs Committee of the Riga City Council will decide on granting permission to the company “Rīgas satiksme” to purchase the 49% capital share belonging to the co-owner of SIA “Rīgas karte” for a symbolic amount – one euro –as well as instructing “Rīgas satiksme” to terminate its participation in the company by liquidating it. On the other hand, on Friday, December 5, an emergency meeting of the city council will be convened regarding the mentioned issue.
The draft decision of the Riga City Council has been prepared because “Rīgas satiksme” has received an offer to use the right of first refusal to purchase the 49% capital share of SIA “Rīgas karte” owned by the foreign co-owner for one euro.
“The company “Rīgas Karte” has become a source of scandals and excessive costs over the years, so this is a good time to cut ties with it completely. It will not require additional funds for Riga, the funds in the company’s accounts will return to the city, and full control will allow the correct liquidation of the company,” says Viesturs Kleinbergs, the chairman of the city council.
Although SIA “Rīgas karte” is not currently engaged in active economic activity, during legal proceedings with the State Revenue Service, the owners of capital shares are still obliged to participate in the management of the company. Thus, the acquisition of capital shares would be a logical and justified step in order to conclude the existence of the company in a legally correct manner, according to the management of the company “Rīgas satiksme”.
“The main goal of the acquisition of capital shares in “Rīgas Kartes” is to ensure complete control over the company, which will allow for a faster and more efficient implementation of its liquidation process, without having to coordinate with the other holder of capital shares,” emphasizes Jineta Innus, chairwoman of the board of “Rīgas satiksme”.
The company “Rīgas karte” was founded in 2007 as a joint venture between “Rīgas satiksmi” (51%) and the French technology company “Conduent Business Solutions” (49%). Its main task was to create and maintain the electronic payment system in Riga’s public transport, ensuring the introduction and service of e-tickets, as well as the ticket distribution network.
Several years ago, “Rīgas satiksme” completely took over and provides the electronic payment system (e-ticket), as well as the parking control system, which allows the company to save tens of millions of euros a year.
