United List asking prime minister to explain government's actions and decisions on airBaltic

RIGA - Opposition party the United List is asking Prime Minister Evika Silina (New Unity) to explain the government's actions and decisions on the national airline airBaltic, plans to recover taxpayers' money invested in the airline, and the role of the prime minister in taking these decisions, the party said in a statement.

The government's decision to reduce the share capital of airBaltic has left the United List MPs worried about recovering the hundreds of millions of euros of taxpayers' money invested in the airline to date, respecting the basic principles of good governance, and uncertainty about the future of the airline, said the party.

After Transport Minister Kaspars Briskens (Progressives) was unable to explain how the funds invested in airBaltic would be recovered during a meeting with the United List representatives, the party's MPs are now asking Silina to explain the government's actions.

The United List wants to find out what the possible scenarios for dealing with problems at airBaltic were, and who had suggested them.

The party also wants to know what the role of the prime minister was in the government's decision on a possible reduction of airBaltic's share capital. The United List wants to know how long the prime minister had information about the possible reduction in the share capital of airBaltic.

The United List wants to find out whether any minister objected to the proposed reduction of the airline's share capital and whether Silina agrees with the opinion that the decision to reduce airBaltic share capital should have been taken by Saeima, given that previous investments in the share capital had been approved by the parliament.

As reported, the share capital of airBaltic will be reduced by EUR 571.293 million in preparation for an initial public offering (IPO), the airline informed Firmas.lv on September 2.

The terms of the share capital reduction state that airBaltic's current share capital is EUR 596.473 million, which means that after the planned reduction it will be EUR 25.179 million.

The Prosecutor General's Office said on Tuesday that it was launching a probe into the government's decisions on airBaltic.