LV: Government orders audit at airBaltic.

By bne IntelliNews June 15, 2011
Following controversial announcements of EconMin Artis Kampars in the reportedly poor financial state of the national air carrier airBaltic, the government ordered KPMG to hold an audit of the company. The audit is expected to be finished by July 4 2011 and the results of the audit are going to influence governments further decisions regarding its involvement in airBaltics capital. To remind, EconMin Artis Kampars came out with a controversial announcement claiming that national air carrier airBaltic suffered losses of about LVL 18mn (EUR 25.6mn) in H1/11 is close to bankruptcy. Kampars also accused companys management of knowingly driving the company into losses by channelling funds out of airBaltic. airBaltic replied with a call for Kampars to resign, deeming his statements false and inappropriate for a government official, especially since airBaltic is partly state owned. As reported, air carriers second shareholder Baltijas Aviacijas Sistemas (BAS) controlled by airBaltic CEO Bertold Flik (owning 47.2% of airBaltic shares, the rest owned by the state) is constantly in tension with governments representatives over transparency of airBaltics management.

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