Video ⟩ The whistleblower who appealed to KNAB about conflicts of interest in “Rīgas namos” is dismissed

Renāta Petrova worked in Riga Central Market from 2018 and was responsible for development issues. According to her, violations were committed in the selection for the leading positions of the newly established capital company “Rīgas nami”.

“It’s not normal that you put a person you know very well in the selection contests. It’s a conflict of interest.

And in this case, starting from 2021, everything happens within the framework of the conflict of interests in the particular capital company,” says Petrova.

“Rīgas namu” established a five-person nomination commission for the selection of council members, headed by the executive director of the city of Riga, Jānis Lange.

In an open competition, Andris Vārna, Ilze Bukulde and Andris Liepiņš became members of the “Rīgas namu” council. Liepiņš is well known with Jānis Langi,

because both are currently working together on the board of the state company “Latvijas Dzelzceļš”.

Council chairman Andris Liepiņš led the selection of candidates for the board of “Rīgas Namu” last summer.

Baibu Beatrisi Sleži was chosen as the chairman from 17 applications. Until then, she worked at “Latvijas dzelzceļa” as the deputy financial director and currently continues to work on the board of the “LDz Ritošā sästva serviss” subsidiary of “Latvijas dzelzceļa”.

Petrova noticed the appointment of close people to positions even before the reorganization – when the spouse appointed his partner to the position. The Law on Prevention of Conflict of Interests in the Activities of State Officials clearly stipulates that spouses may not make decisions about each other, or decisions beneficial to the other.

In the summer of 2021, Agra Languša, currently Vārna, was first appointed to the position of chairman of the board of “Rīgas Central Market”.

Her spouse Andris Vārna was in the selection committee.

Later, both worked together in the management group of the reorganization of Riga companies. It developed a structure scheme, including the establishment of the Real Estate Management Department, the head of which was later appointed Agra Vārna. According to Renata Petrova, the requirements for this position were narrowed down to match her experience and education. When the board of “Rīgas namu” appointed Vārna to the position, her spouse was the chairman of the board in this company.

Renāta Petrova believes that the tenders for the positions of heads of departments in “Rīgas namos” did not take place as foreseen in the reorganization agreement.

In order to make sure whether the employee is right, the board of “Rīgas namu” ordered a legal opinion. It for more than 12 thousand euros (12,137 euro) was developed by “Jānis Kārkliņš law office”. On the website of the Procurement Supervision Office, it can be found that this law firm has received more than half a million for various services from “Rīgas namiam” in the last 10 years. Therefore, according to Renāta Petrovas, the opinion given by sworn lawyer Jānis Kārkliņas cannot be considered objective.

As a whistleblower about conflicts of interest and waste of funds in “Riga Houses”, Renāta Petrova reported to the Corruption Prevention and Combating Office in February. After a few days, her position in “Rīgas namos” was liquidated. Renata Petrova has three higher educations, including legal and economic.

“On February 23, the board decided to eliminate my position. Without evaluating the position, of course. Telling them that they do not need a marketing department as such.

It turned out that I had already filed a whistleblower report and this is a case of whistleblower influence. I think it’s a simple showdown! Therefore, SIA “Rīgas nami” is awaiting legal proceedings in this case with the state. For the fact that they have influenced the whistleblower,” said Petrova.

“So that there is no such situation where the name of this employee is against the name of the (Riga) executive director, we have agreed that the executive director, with the task of management, will provide an independent evaluation of this nomination process in order to eliminate any doubts. I am satisfied with the work of the executive director,” says the mayor of Riga Mārtiņš Staķis. “It’s almost impossible to avoid a situation where someone from the board or council has worked together or been known at some point!”

The remuneration of the board of “Rīgas namu” is competitive with the private sector. The chairwoman receives more than 7 thousand euros, the salary of the other member of the board exceeds six thousand.

Council members’ salary is over 2 thousand euros. Although the council has been working for more than half a year, “Rīgas namos” still has not developed a medium-term strategy. This is one of the main tasks of the council together with the board.

This week, the capital company of the municipality has announced a procurement – for this planning document to be prepared by an outsider. Almost 42,000 (41,900 euros) will be spent on it. The management of “Rīgas namu” explains that they are looking for an international consultant for this task and that this is a common practice for large companies in Latvia.

Although the executive director of Riga believes that “Rīgas nami” will save about 1 million euros this year as a result of the reorganization of four capital companies, the independent member of the Riga City Council, Valters Bergs, cannot see improvements at the moment. He believes that the Central Market Roots Pavilion is an example of non-economics.

More than a year has passed since the wind damaged the roof of the pavilion. The insurance compensation has been paid, but the pavilion is closed.

“Rīgas nami” told the program that it is the tenant of this pavilion and that it has no economic justification and no opportunity to invest. A solution is being sought with the owner of the pavilion – the city of Riga, in order to find funding. Since the damage, the leadership of the property committee of the council had not convened a single meeting to look for a solution to repair the pavilion. And it will be done only now at the request of the independent deputy.

This year’s procurement plan also provides less than 20,000 euros for the civil insurance of the board and council of “Rīgas namu”.