Prime Minister Calls for Changes in the Management Model of Major State Enterprises 0 49

She was asked to comment on the responsibility of the Minister of Agriculture for adjusting timber prices in favor of certain forestry companies in JSC "Latvijas valsts meži" (LVM).

As Siliņa reported, detailed information on this matter is expected from Minister of Agriculture Armands Krauze and LVM, and the Prosecutor General's Office will also conduct its assessment, to which Krauze has appealed on this issue.

Overall, the Prime Minister believes that the frequent occurrence of such situations, where information must be requested to evaluate controversial decisions previously made in a company vital to the national economy, indicates the need for a change in the oversight model of these large companies. It is hardly appropriate for such companies to be under the purview of a single specialized ministry, the Prime Minister said, citing as an example the development financial institution "Altum," which is overseen by several ministries.

It is possible that LVM, "Latvenergo," "Sadales tīkls," and "Augstsprieguma tīkls" are also companies where inter-agency management should be considered, she believes. It has been said more than once that Latvia needs to change the management of these large companies. "And now, when it comes to 'Rail Baltica,' we see that we need the participation of the Ministry of Finance, the Ministry of Justice, and the Ministry of Foreign Affairs," the head of government said.

In her opinion, the best management model for LVM would be one in which the Ministry of Smart Governance and Regional Development, as well as the Ministry of Climate and Energy, share responsibility with the Ministry of Agriculture. According to the Prime Minister, when the Ministry of Agriculture, on one hand, issues regulations, and on the other hand, ensures their implementation, very contradictory situations can arise.