Conflict of interest for new Parex chairman

  • 2008-11-24
  • In cooperation with BNS

More bad news for ailing Latvian Parex Bank

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

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

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

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

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

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

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

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