VILNIUS - A special working group last week slammed the Lithuanian Insurance Supervisory Commission for its handling of the insolvency of Ingo Baltic, a Russian-controlled non-life insurance company, while the government said the group's conclusions were basis to believe that Edvinas Vasilis-Vasiliauskas, chairman of the commission, was in serious breach of labor discipline.
Prime Minister Algirdas Brazauskas has asked the chairman to provide an explanation regarding the commission's accusations by Aug. 30.
The working group, established to assess how the ISC handled Ingo Baltic's insolvency, concluded that the ISC failed to take the necessary actions and did not perform its duty to inform the government and the public about the situation in the insurance market.
"The supervisory commission failed to take actions as provided for by the law in a proper and timely manner," Finance Minister Zigmantas Balcytis told reporters last week.
"The second conclusion is that the commission did not perform its duty to inform, in a proper way, the government and the public about the situation regarding insurance supervision," he said.
The minister did not say if there were sufficient grounds to dismiss the ISC chairman, Edvinas Vasilis-Vasiliauskas.
Under the Labor Code, a gross breach of labor discipline is a valid reason to dismiss an employee.
The Vilnius Regional Court decided on Aug. 18 to start bankruptcy proceedings against Ingo Baltic.
Ingosstrakh, a Russian insurance company, owns 55.6 percent of Ingo Baltic, while Baltijos Garantas, a Lithuanian insurer, holds a 44.3 percent stake.
Ingo Baltic posted losses of 4.68 million litas (1.4 million euros) in 2004, compared with net profits of 215,000 litas in 2003.