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Roundup: Lithuanian Railways CEO steps down amid political, financial controvery

Xinhua, December 3, 2016 Adjust font size:

Stasys Dailydka, the long-standing CEO of Lithuanian Railways (Lietuvos Gelezinkeliai, LG) submitted his resignation to the company's board on Friday, the state-run company said.

"Assuming responsibility for the company, I resign from the CEO office," Dailydka said in a statement which was announced by local media.

"Without political support and the approval of strategic decisions, it is impossible to achieve the objectives important both to the company and the state," Dailydka said in the statement.

He expressed hope that a highly-competent successor would lead the company and LG would "compete successfully in the international transport market."

Dailydka had been at the helm of the LG company since 2006.

His resignation announcement followed a meeting on Friday with Lithuania's outgoing Prime Minister Algirdas Butkevicius and Transport Minister Rimantas Sinkevicius.

Lithuania's new government is due to start its work in the coming days. Rokas Masiulis, the former energy minister, is due to swap his post to become the minister of transport and communications. Restructuring of LG is among the new minister's major challenges, local experts said.

"We have observed growing tensions around the LG company recently...I believe it is the very time for a new generation to come to LG," Masiulis was quoted as saying about the CEO's departure by local website 15min.lt.

LG has been involved in a number of controversial issues recently, including the company's financial support for organizations related to certain politicians and allegedly nontransparent procurement procedures.

Earlier this year, the company was criticized by Lithuanian President Dalia Grybauskaite. She said LG "was acting like a state within a state" and blamed the company for raising its interests "above the interests of the country."

LG was also criticized by Latvian, Estonian and European Commission officials due to the Lithuanian company's reluctance to implement the Rail Baltica project.

In October, the EU threatened to suspend Rail Baltica's Lithuanian projects funding if LG did not sign the corresponding procurement agreements. The documents were signed by Dailydka soon after the EU's notice.

LG is one of four state-owned companies which pay the major share of dividends to the state budget. Endit