As Lita Kokale, head of the Public Relations Department of the Ministry of Culture, informed LETA, the decision by which the “Helio Media” project was approved in the European Union (EU) Recovery Fund (AF) media company digitization program has now been canceled.
He added that such a decision had to be taken from the beginning, because government regulations do not allow supporting media that are wholly or partially owned by public persons. Pleshakov emphasized that ”Tet” partly belongs to the state. Therefore, it is considered that the subsidiary company of “Tet” is also partly owned by a public person.
Prior to that, Prime Minister Evika Siliņa (JV) also admitted to Latvijas Radio that ”Helio Media” did not have the right to compete in the competition for media modernization and digitalization announced by the Central Finance and Contracts Agency (CFLA).
The minister stated that this situation is ”very bad” and that the Ministry of Finance together with the CFLA should think about where the problem was, because it cannot happen again. ”There was even a fundamental error in the examination of the results of the competition,” said the Prime Minister.
It has already been reported that at the end of October, the government decided to allocate an additional 7.4 million euros to the AF support program for media modernization and digitization.
An additional four million euros were allocated from the AF program “Support for the digitization of processes in commercial activities” under the control of the Ministry of Economy, and another 3.4 million euros from the AF program “Development of the teaching approach of self-management ICT specialists” of the Ministry of Education and Science.
The total funding of the program “Modernization of processes of media industry companies” along with the creation of additional funding will be 11.1 million euros, and support measures are planned to be implemented until June 30, 2026.
It has already been reported that 30 project submissions were received in the CFLA tender for media modernization and digitization, in which the requested AF investments – 12,219,810 euros – more than triple the support available in the program in the amount of 3,700,000 euros.
KM previously informed that CFLA has completed the initial evaluation of projects by tender procedure, advancing seven projects for approval within the available funding with conditions that the project applicants still have to fulfill. 27 project submissions out of a total of 30 submitted projects meet the conditions for the implementation of the event.
Within the framework of the program of modernization and digitization of media industry company processes, support is provided for the development of technological solutions of companies for the modernization and digitalization of media, for speeding up the production processes of companies, as well as for the creation of information technology (IT) tools that improve the availability of media content and data analysis of the habits of their audience.
Owners or members of commercial mass media, legal entities or partnerships that conduct public opinion research and provide services to the media, including conducting media audience research in the Latvian market, or a natural person registered with the National Electronic Media Council could apply for the funding available in the program. as an electronic media or in the mass information media register of the Register of Enterprises – you can apply to the open project tender already announced by the CFLA.
The list of potential applicants that LTV received was not regional media, but included, for example, the “Helio” platform of the “Tet” company. In a written response of SIA “Helio Media”, LTV stated that it hopes to direct the potentially obtained funding to the creation of a new and more modern live television news program with digitalization of the production process, as well as to the modernization of the ”1188.lv” portal, improving the user experience of its visitors.
CFLA, on the other hand, expressed that there were more applicants than money, so seven of the 30 applicants were selected for further progress in the competition, who allegedly had better written projects. In turn, the CM promised to look for an opportunity to support regional media from the means of other available forms of support.
What were the key challenges faced by the “Helio Media” project that led to its cancellation by the Ministry of Culture?
Interview between the Time.news Editor and Lita Kokale, Head of the Public Relations Department of the Ministry of Culture
Editor: Welcome, Lita Kokale. Thank you for joining us today. The recent decision to cancel the approval of the “Helio Media” project has raised many eyebrows. Can you help us understand the primary reasons behind this cancellation?
Lita Kokale: Thank you for having me. The cancellation stemmed from regulatory issues. We found that “Helio Media,” which is affiliated with the media company “Tet,” could not compete for funding due to ownership regulations. Since “Tet” is partly owned by the state, this disqualified them from the EU Recovery Fund media digitization program.
Editor: That’s quite an important point. Prime Minister Evika Siliņa referenced this situation as “very bad.” What steps are being taken to address this oversight so that such a situation doesn’t occur again?
Lita Kokale: Indeed, it is a serious issue. The Prime Minister has highlighted that both the Ministry of Finance and the Central Finance and Contracts Agency (CFLA) are assessing the initial evaluation processes. We acknowledge that there was a fundamental error in examining the competition results, and it’s crucial for us to identify and rectify these problems quickly.
Editor: Speaking of funding, the government recently decided to allocate an additional 7.4 million euros to the media modernization and digitization program. How do you envision this funding being utilized, particularly in the wake of the recent controversy?
Lita Kokale: The additional funding, which totals 11.1 million euros when combined with prior allocations, aims to support the development of cutting-edge technological solutions across media companies. This funding is designed to enhance their production processes and improve overall efficiency. We want to ensure that the benefits reach deserving projects and truly advance the modernization of the industry.
Editor: Given that 30 project submissions were received for this competitive funding, what criteria will be used to evaluate and approve these projects moving forward?
Lita Kokale: Each project will be evaluated for its feasibility, potential impact on the media landscape, and its alignment with our objectives for technological advancement and digitization. The CFLA conducted an initial assessment and selected seven projects that meet the basic criteria. We are committed to transparency and fairness in this process to regain public trust.
Editor: It’s reassuring to hear that the ministry is committed to improving the process. Could you elaborate on the types of technological solutions that these projects might develop?
Lita Kokale: Certainly! The support we provide will enable companies to modernize their production processes by adopting new technologies such as automation, data analytics, and innovative content delivery systems. Essentially, we want to enhance their capacity to produce high-quality content efficiently, which is crucial in today’s digital media landscape.
Editor: with the implementation window extending until June 30, 2026, what measures will be in place to ensure continuous evaluation of the funded projects?
Lita Kokale: We will have a structured oversight mechanism in place, which includes regular progress reports and assessments of project outcomes. Our aim is to ensure that the funds are utilized effectively, and that projects are achieving the desired results. Feedback loops will be established to make adjustments as needed, ensuring we remain responsive to the needs of the media industry.
Editor: Thank you, Lita, for sharing these insights today. It’s clear that while challenges exist, there’s a strong commitment to fostering a robust and modern media landscape in Latvia.
Lita Kokale: Thank you for the opportunity to discuss these important issues. I believe we can turn this situation into a positive force for the future of our media sector.