The State Revenue Service (VID) has put under arrest the accounts of SIA Rigas karte, which is responsible for the electronic public transport ticket system in Riga. This decision may negatively impact the functionality of the entire e-ticket system in Latvia’s capital city, says Rigas karte board chairperson Diana Smite.
She says the company has received an official notification from VID regarding the arrest of the company’s accounts. She believes this decision is excessive and only serves to paralyze the company’s operations.
Smite stresses that the company will use its right to appeal VID’s decision.
As of January, Rigas karte provided services to Riga’s municipal public transport company Rigas satiksme without sub-contractors. This has allowed the company reducing maintenance costs by 50%.
E-tickets in Riga are distributed using retailers selected through a public procurement.
“A company that operates honestly, transparently and has plans to continue operating this way in the future is effectively paralyzed by this decision,” said Smite.
The arrest put on the company’s accounts makes it difficult for the company to continue operations, because it is necessary to maintain the office and equipment and pay wages.
The other important issue is maintenance of the ticket system, which will not be possible if the arrest imposed by VID is not appealed or lifted.
Rigas karte is currently compiling the necessary documents to appeal the decision.
Representative of SIA Rigas satiksme Baiba Bartasevica-Feldmane said the arrest put on Rigas karte would not affect operations of Rigas satiksme.
The turnover of SIA Rigas karte was EUR 20.229 million in 2020, up by 8.8% YoY. The company’s profits, on the other hand, declined by 15.5%, to EUR 4.444 million.
Rigas karte was founded in 2007. It was created to maintain the electronic payment system used by public transports and parking lots in Riga.
Rigas karte’s shareholders include SIA Rigas satiksme and technologies company Conduent. 51% of the company’s shares belong to Rigas satiksme and 49% belong to French Conduent Business Solutions. (BNN/Business World Magazine)