Caretaker board of Latvia's state-owned energy company resigns

Source: Xinhua| 2019-07-01 22:05:31|Editor: Wu Qin
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RIGA, July 1 (Xinhua) -- The entire caretaker board of Latvia's state-owned energy company Latvenergo, which the economics minister had appointed in June, announced resignation on Monday, local media reported.

Pavels Rebenoks, who chaired the energy company's interim supervisory board, issued a statement saying that the board had become "inconvenient" and could no longer fulfil its principal task given by the government -- to reduce consumers' electricity bills, which had been one of the main reasons for recalling the company's previous board.

Members of the caretaker board realize that their resignation can hamper decision-making in Latvenergo and delay the reduction of energy prices, but in the current politically tense atmosphere they see resignation as their only option, Rebenoks said.

On June 19, Economics Minister Ralfs Nemiro recalled the Latvenergo supervisory board and replaced it with an acting board which included the minister's adviser Rebenoks, the head of his office and three business executives.

Many politicians, including Prime Minister Krisjanis Karins, called the economics minister's decision "rushed, ill-considered and inconsistent" with principles of good governance. There were also allegations of political motives behind the reshuffle.

On Monday, Nemiro said on public radio that work was already underway to call a tender to appoint a new supervisory board for the energy company. The economics minister hopes Latvenergo will have a new, permanent board in one to two months' time.

In the meantime, the Economics Ministry's state secretary Eriks Eglitis has been tasked with supervising the state-owned company.