January promises to be a hot month for the capital's municipality: the approval of the budget for our "state city", as Riga is now referred to everywhere, is scheduled for the 21st.
Most likely, the main financial document will get stuck, at best, for a few days. Because too many questions have accumulated for the ruling party, at least regarding the beloved Rīgas namu pārvaldnieks (RNP).
"We have very few people today"
This justification was used by Elina Treija (National Alliance), the chairwoman of the Riga City Council Housing and Environment Committee, when at the last meeting, an opposition deputy proposed to consider the information that had surfaced in the public domain about the planned alienation of the public legal entity – RNP.
Although the requested topic, Treija acknowledged, was submitted in full compliance with the Council's regulations – she, you see, lacked personnel for a full discussion. Well, it turned out that gathering all 15 deputies for a working meeting was too much trouble.
However, the video recording of the committee shows that all its leadership was present, including both deputies from the ruling coalition – Mairita Luse (Progressives) and Edgars Ikstens (New Unity). There were also interested representatives from the opposition. Committee staff and employees from the Housing and Environment Department were present. So why not discuss it?
"I asked the executive director Mr. Lange to briefly inform us," said the chairwoman, who, on one hand, did not want to seem slippery about the RNP issue, but on the other hand, could not completely ignore the opposition's request.
Shareholder
In this capacity, along with his functions as a city manager, Janis Lange works in the municipality, which is why he came to the committee podium.
In his view, the alienation of the enterprise may occur if "the legal grounds" for the municipality's participation in it "disappear".
– Accordingly, documentation is currently prepared at the executive level, but further, when this issue is considered at a Committee or Council meeting – this depends on the political leadership of the Council, which will include this issue in the agenda. At that moment, all materials will be attached, including an assessment of participation. Today, they have a limited status.
However, Mr. Lange noted that the deputies of the Council can request to review the documents "in writing by submitting a request". They need to write to him personally "with justification for why this information is necessary".
– We will provide this information, if, of course, the deputies have the right to it, – the executive director remarked significantly, once again proving that he, having been appointed to this position during Mayor Martinš Stakis's term in 2021, is still of a higher status than those elected by the citizens of Riga in 2025.
For those who do not know, in the past, this bachelor of economics from the Latvian Agricultural University and master of management science from the University of Latvia worked in positions as a board member and chairman of the board of the state joint-stock company Latvijas Valsts ceļi, as well as chairman of the board of the state joint-stock company Latvijas dzelzceļi.
So, the management of RNP is in reliable hands, and no one will find out anything extra about it. Even if a particularly inquisitive deputy shows up, it is clear that this knowledge will have to be kept to themselves.
Because there is an article 329 in the Criminal Law regarding this: "Disclosure of undisclosed information, which is not confidential, secret, or top secret, if committed by an official who has received a warning about non-disclosure of information or is responsible for its storage according to the law". It is punishable by up to one year of imprisonment!
– This issue has not yet appeared on the official agenda, – Mr. Lange also stated.
The deputies inquired: so, will the deputies decide the fate of RNP at a closed meeting?!
Immediately, representatives from the aforementioned enterprise reported that the document turned out to be "very extensive, including possible scenarios for alienation and possible value".
Therefore, even during the voting in the Riga City Council, the document will be marked with the abbreviation IP – "limited access". Only the legal formula by which the municipality will refuse its enterprise will be open. And if there is a discussion – the municipality will have to go... to a closed meeting!
See how deeply everything is set up – it is no wonder that qualified lawyers did not sleep days and nights before the holidays to complete the pre-sale preparation.
However, I, having observed the central office of RNP at Čaka Street 42, can testify that even during working hours, the lights go out there before 5:00 PM. So, it is quite possible that the framework document for bringing the enterprise into the market was prepared by external specialists – so to speak, on outsourcing. I wonder how much this cost the residents of Riga?
Janis Lange also dodged the question "if the topic of selling RNP has surfaced, why then are there no detailed data?".
– I cannot comment on where this information leaked from, but I can assert that the document does not relate to limited access.
By the way, according to data for 2024, RNP had a turnover of 80.57 million euros – and a profit of 9 million euros.
Stock Market Option – A Failure
Meanwhile, the media is already featuring an expert assessment expressed by the partner of an international financial consulting firm, Raitis Loginš: it is unclear why the municipal enterprise Rīgas namu pārvaldnieks chose an IPO strategy with a listing of 51% of shares on the stock exchange, which means that Riga will lose any control over the decisions of the enterprise's management.
– Of course, the enterprise itself benefits from this strategy – the municipality as an owner on the stock exchange adds value and guarantees greater trust from investors, also, most likely, guarantees residents that the property manager will not change, while the municipality no longer has influence over its operational and strategic decisions.
