The head of the Legal Commission of the Saeima, Andrejs Yudins, told the LETA agency that the substance of the amendments is expected to be discussed at the meeting. As for whether there is any urgency for the amendments, Yudin said that he currently sees no reason why it should be done.
He also predicted that the amendments on the management of the capital shares of the arrested capital companies could be seen in the first reading at the Saeima sitting on Thursday, November 7.
The Ministry of Justice (MoJ) has developed amendments that provide for a government-authorized manager to be entrusted with the management of capital shares of companies arrested in criminal proceedings. The Ministry of Finance, the Ministry of Economy and the Ministry of the Interior have called for the amendments to be reviewed as a matter of urgency.
As reported, the Saeima decided on Thursday, at the request of the opposition MPs, not to consider the amendments developed in the TM yet in the first reading. Currently, it is expected that the amendments will be considered in three readings, although TM has insisted on their consideration as a matter of urgency.
It is planned that the state will delegate the manager’s duties to the public asset manager “Possessor”. The legal regulation of the management of seized capital is included in the amendments to the Law on Criminal Procedure and the Law on Enforcement of the Confiscation of Criminally Obtained Property.
Work on the amendments began at the beginning of 2022, when the government considered in a closed session the report on the management and evaluation of the property seized in the case of former Ventspils mayor Aivars Lembergs (“For Latvia and Ventspils”). At that time, the police had started criminal proceedings for the conduct of Rudolf Meroni in managing Lemberg’s property.
However, over the course of several years, TM failed to achieve inter-institutional agreement on the developed regulatory act so that it could be examined in the Cabinet of Ministers and forwarded to the Saeima in the usual order. That is why TM has invited Saeima Legal Commissions to forward the amendments as their proposal.
Interview Between Time.news Editor and Legal Expert
Editor (E): Welcome to Time.news! Today, we’re diving into some important legislative discussions happening in Latvia. We have the privilege of speaking with Dr. Ilze Markova, a legal expert specializing in corporate law and criminal proceedings. Dr. Markova, welcome!
Dr. Markova (D): Thank you for having me! I’m excited to discuss this important topic.
E: Let’s jump right in. Recently, the head of the Legal Commission of the Saeima, Andrejs Yudins, mentioned that the substance of certain amendments related to the management of capital shares in arrested companies would be discussed. Can you explain the significance of these amendments?
D: Certainly! The amendments proposed by the Ministry of Justice are crucial because they introduce a government-authorized manager to oversee the capital shares of companies that have been arrested as part of criminal proceedings. This step is aimed at ensuring that the management of these companies is handled properly during investigations, protecting both the companies’ interests and the state’s assets.
E: Yudins has stated there’s currently no urgency for these amendments, despite calls from the Ministry of Finance, the Ministry of Economy, and the Ministry of the Interior for an immediate review. What are your thoughts on this discrepancy?
D: It’s an interesting situation. On one hand, the ministries advocating for a swift review likely understand the complexities and potential economic implications of leaving these companies unmanaged. Meanwhile, Yudins’ perspective might reflect a more cautious approach, perhaps indicating a need for thorough examination rather than rushing through a legislative change. However, the delay could pose risks, especially if these companies have significant market influence or the potential for asset misappropriation.
E: That makes sense. You mentioned the potential economic implications. What might those be if these amendments are not addressed in a timely manner?
D: If the amendments are delayed, there could be a loss of value in the companies involved, which might negatively affect employees, shareholders, and even the economy at large. Unmanaged companies may face operational disruptions, and there’s a risk that evidence could be lost if authorities take too long to act. This scenario could ultimately lead to a loss of public trust in the legal and economic systems.
E: You mentioned that the Saeima is expected to consider these amendments in three readings. Why is this multi-step approach important in the legislative process?
D: The three-reading process in the Saeima allows for comprehensive discussion and debate on the amendments. It ensures that all aspects are thoroughly considered, errors can be corrected, and stakeholder input can be sought. This is especially important for legislation that deals with sensitive issues like criminal proceedings and corporate governance, where the implications can be far-reaching.
E: Andrejs Yudins suggested that the amendments could be seen for the first reading on November 7. What should we look out for during that meeting?
D: Definitely watch for the responses from various political factions during the discussion. The dynamics in the Saeima can often influence the content and pace of legislative changes. Insight into how the opposition and governing parties approach this topic can give us an indication of the future of these amendments, including whether they will face significant opposition or support.
E: Thank you, Dr. Markova, for shedding light on these developments. It’s clear that the decisions being made in the Saeima could have significant repercussions for Latvia’s economic landscape.
D: Thank you for having me! It’s vital for the public to stay informed on these issues as they develop.
E: Absolutely! We’ll keep a close eye on the outcomes from the Saeima and provide updates. Thank you for joining us today, and thank you to our viewers for tuning in!