Elimination of the Controversial Latvian Port Development Fund
The Port Development Fund, established in 1994, has been at the centre of controversy recently, following an audit by the State Audit Office that revealed uneconomical and unlawful spending between 2019 and 2023. This has led to the proposal for the fund's abolition, a move spearheaded by Peter Longo.
The primary purpose of the Port Development Fund was to advertise Latvia and finance the representation of Latvian ports at world forums. However, the uneconomical and unlawful spending has cast a shadow over its operations. The Transport Ministry, which was responsible for monitoring the fund, has admitted that accountability for the spending is far from the ministry. The persons responsible for these irregularities are no longer working in the ministry.
The Council for Ports, Transit and Logistics, chaired by the Prime Minister, is responsible for approving the financing of the Port Development Fund. Despite these findings, no further information is provided about the specific actions taken to address the uneconomical and unlawful spending.
In the midst of this, a new brand named "Via Latvia" has been developed for the promotion of Latvian ports in international forums. The Minister of Transport and the Prime Minister both support the brand. The Latvian Investment and Development Agency could potentially be involved in achieving the Fund's objectives.
Interestingly, the Prime Minister has explained that the money may have been distributed by the Maritime Administration, which administers the fund. This suggests a possible disconnect between the Transport Ministry and the Maritime Administration in the management of the Port Development Fund.
Despite the controversy surrounding the Port Development Fund, the promotion of Latvian transit is agreed upon by all parties. There have been no disbursements from the Port Development Fund this year, indicating a pause in its operations. The abolition of the Port Development Fund is set to take effect, but the details of how its objectives will be achieved moving forward are yet to be clarified.
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