Acting Minister of Agriculture, Minister of Economics Viktor Valainis (SCP) decided to suspend the State Secretary of the Ministry of Agriculture, Girts Krūmiņš, during the procedural actions and investigation, Valainis reported today after a meeting with State Auditor Edgars Korčagins.
Valainis explained that by July 1, the Ministry of Agriculture must revise the structure of the ministry and create an institute for managing capital shares in accordance with professional requirements and principles of good governance.
Additionally, Valainis instructed the Ministry of Agriculture to prepare a letter for JSC "Latvijas valsts meži" (LVM), clearly outlining the objectives of its activities, financial and non-financial indicators, as well as achievable quantitative and qualitative metrics with a deadline of September 1.
Within a week, the Ministry of Agriculture, as a shareholder of LVM, must prepare a report assessing the performance of the LVM council and a plan for further actions, while the council is tasked with evaluating the accountability of the members of the LVM board.
At the same time, Valainis instructed the Ministry of Agriculture to ensure a full working staff within four months, including preparing all necessary documents for selection procedures to ensure the management of LVM by a fully constituted board and council.
As reported, Valainis met with State Auditor Korčagins to discuss the findings of the State Audit Office regarding the feasibility and effectiveness of oversight over LVM.
The State Audit Office found significant shortcomings in the management of JSC "Latvijas valsts meži" (LVM) and in the oversight performed by the Ministry of Agriculture as the holder of capital shares, which led to clearly measurable negative consequences for the state.
According to the State Audit Office, due to deficiencies in the planning of LVM's strategy and dividends, and in the management of free financial resources, as well as the support provided to the forestry industry, these negative consequences are measured in tens of millions of euros.
