Šiauliai city council transfers energy company management to mayor facing corruption charges
Šiauliai city council approved the restructuring of joint-stock company "Šiauliai energija" into a limited company, abolishing its board. The opposition criticises the decision, arguing that the profitable company falls under the control of mayor Artūras Visockas, who is facing corruption charges.
Šiauliai city council transfers energy company management to mayor facing corruption charges
The city council of Šiauliai has voted in favour of a proposal to restructure the joint-stock company "Šiauliai energija" into a limited company and abolish its board. The decision was supported by 19 of 28 politicians who participated in the session. Following the restructuring, the company will be managed by a chief executive director and mayor Artūras Visockas, who is currently facing trial in a corruption case.
Government representatives justify the restructuring as a cost-saving measure – board members were paid approximately 92,000 euros last year. The mayor claims the board "has nothing to do, everything is regulated". However, opposition politicians view this move as a dangerous concentration of power in the hands of a single individual.
"This is a 10-year step backwards. Leaving such a company dependent on two individuals poses many risks," warned social democrat Edvardas Žakaris. Independent council member Zakiras Medžidovas reminded that the mayor's case involves alleged violations of public procurement worth 600,000 euros: "I am more convinced by the functioning through a board."
Conservative Jonas Bartkus suggested postponing the decision until the mayor's trial concludes. "I do not wish to accuse anyone while the trial is ongoing, but the court is discussing the influence of the main shareholder on our company," he said.
AB "Šiauliai energija" was founded in 1997. The company, which provides heat, electricity and hot water production services, is owned by the Šiauliai municipal authority, which holds 95.3 per cent of shares. Last year, the company made a profit of 3.4 million euros.
According to law enforcement data, A. Visockas interfered with public procurement procedures of the municipal UAB "Šiauliai šviesa". The politician has been charged with abuse of office, attempted fraud and witness intimidation. He denies the charges.
Following this restructuring, all Šiauliai budgetary institutions and municipal companies will be controlled by a single individual – the mayor.
Source: LRT.lt
Source: LRT