Kalvitis steps down as Lattelecom chairman

  • 2009-06-18
  • By TBT Staff

Kalvitis remained in the position for less than two months.

RIGA - Former Latvian Prime Minister and former head of the People's Party Aigars Kalvitis has announced his decision to resign from his post as council chairman of Lattelecom as of July 1.
Kalvitis, who has chaired the electronic communications services company for less than two months, received widespread criticism when he was appointed to the post for his lack of experience in the industry.

He told reporters that he decided to step down in order to encourage the government to liquidate all councils of state-owned companies.
Kalvitis informed current People's Party head Mareks Seglins and Maris Kucinskis of his decision.
 "Currently, as Latvia is battling with the global financial crisis, the priorities are to use the government and administrative resources funds effectively. Just as important is the obligatory stipulations for businesses, especially for those who, either in part or in full, belong to the state," said Kalvitis.

The former PM explained to the press that the question about matter of state owned businesses has become especially important in the time of crisis. Kalvitis also stated that it is clear that in a time when the state will be looking for a way to save, the government will not be able to afford such expensive supervisory mechanisms.

"Therefore I see that the government's decision regarding the state-owned council's liquidation is correct. But they have only taken a small step," Kalvitis wrote in a press release.
"The state has decided that in those businesses, a part of which belongs to the state, for example Lattelecom, the councils will be allowed to continue working. In my opinion this is not the right decision, and the councils should be completely liquidated, in the cases where the shareholder is the Latvian state," he said.

He said that this is the reason he has decided to step down from the council of Lattelecom as of July 1. Kalvitis said his decision insures his announcement isn't just words, but action as well.
With his resignation, Kalvitis said he hopes to attract attention to the issue of liquidating all councils of state owned companies.

Kalvitis has also asked Economy Minister Artis Kampars to come to an agreement with Lattelecom's other shareholder, TeliaSonera, on liquidating the council.
"At a time when government is seeking ways to cut spending and reduce costs, such expensive corporate councils are not affordable," said Kalvitis.

According to Kalvitis, the Latvian government has only taken a half step in solving this issue by calling for the dissolving of the business councils which are state owned.
The Lattelecom Group is made up of five companies: SIA Lattelecom, Lattelecom BPO, Citrus Solutions and Lattelecom Technology with its subsidiary Baltic Computer Academy. Currently, 51 percent of the Lattelecom Group is owned by the Latvian state, and 49 percent by TILTS communications.