Latvia's largest state-owned enterprises to get supervisory boards again

Supervisory boards will be appointed to Latvia's largest state-owned enterprises again in order to comply with the Organization for Economic Co-operation and Development's (OECD) recommendations, the Latvian government decided on Tuesday.

The supervisory boards of the state-owned companies were abolished in 2009 as part of austerity measures to cope with the financial crisis, but the OECD, which Latvia hopes to join soon, wants them to be restored in order to enhance the oversight of the state-owned enterprises.

The government intends to appoint supervisors to those state-owned companies whose annual turnover exceeds 21 million euros (23.5 million U.S. dollars). Prime Minister Maris Kucinskis also vowed to make sure that the boards do not become politicized.

Kucinskis indicated, however, that the board members will represent the positions of the government and ministries and that they "cannot be outsiders who know nothing, who may be specialists, but do not know whose interests they represent."

"They have to be professionals who can supervise the industry on behalf of the government," Kucinskis said.

Foreign Minister Edgars Rinkevics noted that the creation of the supervisory boards is an essential precondition that will allow Latvia to successfully complete the remaining accession talks with the OECD.

Under today's decision, supervisory boards will be appointed to state-owned enterprises like Latvijas Dzelzcels (Latvian Railway), Pasazieru Vilciens passenger train operator, Latvijas Pasts postal company, Riga International Airport, and Latvenergo telecommunications and internet services provider, among others. Endit