Conflict of interest for new Parex chairman

Nov 24, 2008
In cooperation with BNS

RIGA - The Latvian Corruption Prevention and Combating Bureau (KNAB) reported a possible conflict of interest after Finance Ministry's state secretary and representative of the government Martins Bicevskis takes the position of council chairman for Parex Bank.

KNAB representative Andris Vitenburgs told The Baltic News Service that KNAB does not exclude the possibility that there might be a conflict of interest when officials are performing their duties in the state-run Mortgage Bank.

KNAB acting head Andris Vilks said that these potential risks should initially be assessed by the state official or institution that has appointed the particular official to the position.

On Nov. 13, the parliament adopted amendments to the bill on conflict of interest in state officials' work to allow Bicevskis to become a council chairman for Parex Bank.

The second largest Latvian bank, Parex Bank, turned to the government for assistance to help solve their financial problems they faced due to the global financial crisis.

In order to support the bank, the government on Nov. 8 passed a resolution taking over the controlling stake in Parex Bank through the state-owned Hipoteku un Zemes Banka (the Mortgage Bank).

The agreement on the takeover was signed on Nov. 10 and the Latvian state acquired 51 percent in Parex Bank.

Parex Bank's new board chairman will be the head of the Mortgage Bank Inesis Feiferis, and Bicevskis has been appointed as the new council chairman.

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