RNP and the mayor of Riga do not see grounds for concern about a possible violation of the sanctions regime and the possibility of reputational risks. The applications of two applicants are currently being evaluated in the competition announced by RNP for the technical maintenance of elevators, as well as planned and extraordinary repairs.
The information available to “Lursoft” shows that the true beneficiary of one of the companies, SIA “Recept-Holding Lifts”, is a citizen of Belarus, V. Gavars stated in the information distributed to the media at the end of last year, thus drawing attention to the fact that, possibly, the order of the municipality may acquire a company linked to Russia’s aggression in Ukraine, which essentially supports the Belarusian regime.
“It is now the third year since Latvian businessmen have been invited to stop cooperation with Russia and Belarus, so the question arises – how to evaluate the participation and possible victory of Belarusian companies in this type of tenders?” asks V. Gavars rhetorically.
According to the information provided by him, the summary of the submitted financial offers in the RNP tender shows that two companies are currently applying for the technical servicing of the elevators, as well as planned and extraordinary repairs in the RNP tender. In addition, only “Recipe-Holding Lifts” submitted an application for the execution of these works in the existing apartment buildings in the Purvciema neighborhood of the “Austrumi” territorial district, which most likely means an automatic victory and the public money falling into the hands of the aggressor state.
In a conversation with , several businessmen also expressed their confusion about RNP’s decision to allow a company with a dubious reputation to participate in the tender, stating that while Russia’s aggressive war in Ukraine continues, and in addition to both Russia and Belarus, the international community continues to apply various types of sanctions, public sector orders and accordingly, a company with a dubious reputation could also get financing.
RNP emphasizes that everything is under control
In its public statement regarding the concerns expressed by V. Gavara, RNP stated that the company ensures the verification of sanctions and the prevention of violations, stating that any bidder can apply for a publicly announced procurement. On the other hand, the task of the RNP procurement commission is to make sure that the applicants with whom the contracts are concluded meet all the requirements set out in Latvian legal acts and the procurement technical specification.
“RNP not only carefully carries out all the requirements of the Law on Public Procurement for the verification of compliance with sanctions, but also establishes strict rules in the contracts with its suppliers, which provide for compliance with the prohibition of violations of sanctions. This means that materials and equipment originating from a country subject to international, European Union or national sanctions or sanctions affecting significant financial and capital market interests of the European Union or North Atlantic Treaty Organization member states will not be used in the provision of the service and repair work. including Russia and Belarus, and contracts will not be concluded with persons subject to the said sanctions. We provide and will provide inspections with equal care in all purchases we make,” RNP representatives emphasize.
Also, RNP states that SIA “Recept-Holding Lifts” has so far passed the safety criteria of Latvia, adding that – while the procurement procedure is ongoing and all the inspections planned within it continue, it is impossible to predict with which company the contract will be concluded. concerns, it is important to point out that SIA “Recept-Holding Lifts”, the tenderer who submitted an offer in the procurement, as a result of public procurement, is currently providing services to the Latvian Defense industry organizations – the Ministry of Defense, the State Defense Military Facilities and Procurement Center – as well as the Latvian State Radio and Television Center, which provides critical infrastructure, and several regional hospitals in Latvia, such as Daugavpils, Dobeles and Rēzeknes. At the same time, regardless of these contracts, in the procurements organized by RNP all applicants are checked equally carefully and without exception,” says RNP. On the other hand, the mayor of Riga, Vilnis Ķirsis in his comments to about the situation, he is quite laconic: “RNP is a municipal company whose operations are supervised by the executive director. However, after getting acquainted with the explanation published by the company, there are no suspicions of violations of good management, procurement procedures and restrictions on cooperation with sanctioned companies in force in the country.”
However, the risks are high
At the same time, V. Gavars points out that the first RNP tender for elevator maintenance was concluded a couple of months ago, and companies with a dubious reputation and several lawsuits, as well as companies whose true beneficiaries are citizens of Belarus, participated in it. In total, there were six parts in the tender, but contracts were concluded only with three businessmen, because the company that won the right to perform the works in the remaining three stations was refused participation for some reason. As a result, a new competition was announced at the end of the year, which cannot boast of a long list of applicants. Currently, only two applicants, including the already mentioned SIA “Recept-Holding Lifts”, have applied for the technical service of the elevators, as well as for planned and extraordinary repair works.
V. Gavars also emphasizes that the information at his disposal shows that the other company could be excluded from the tender because it submitted the bank’s collateral documents two days later. The MP also emphasizes that companies whose true beneficiaries come from countries that actively support Russia’s invasion of Ukraine cannot participate in public tenders. Cooperation with such companies is too risky, according to businessmen, noting that the political situation in the world at the moment clearly shows that we should not make friends with Russian and Belarusian companies. It is also noted that it is impossible to predict in what way such money obtained in the tender will be used by the real beneficiaries.
The information available on the website of the State Revenue Service shows that, taking into account the situation in Belarus and Belarus’ involvement in Russia’s aggression against Ukraine, sanctions are currently imposed on Belarus in accordance with several legal acts.