Riga city officials are moving to dissolve SIA “Rīgas karte,” teh company responsible for the capitalS electronic payment system for public transit, in a deal valued at just one euro. The riga city Council will vote December 5 on acquiring the remaining 49% stake from French firm Conduent Business Solutions after “Rīgas satiksme,” the city’s transit authority, exercised its right of first refusal [[1]]. The move, framed by city leadership as a necessary step to address past financial issues and streamline operations, aims to finalize the liquidation of a company that has been largely inactive but tied up in legal proceedings wiht the State Revenue Service.
Riga’s municipal government is poised to approve the acquisition of a 49% stake in SIA “Rīgas karte” for a symbolic one euro, paving the way for the company’s liquidation.
The decision will be considered by the Finance and Administrative Affairs Committee of the Riga City Council on December 4, with an extraordinary council session scheduled for December 5 to finalize the matter. The move comes after “Rīgas satiksme,” Riga’s public transport operator, received a right of first refusal to purchase the stake from a foreign shareholder.
According to Riga City Council Chairman Viesturs Kleinbergs, “Rīgas karte” has become a source of scandal and excessive costs, making its dissolution a logical step. “This will not require additional funds from Riga, the funds in the company’s accounts will return to the city, and full control will allow for the proper liquidation of the company,” Kleinbergs stated.
While SIA “Rīgas karte” is currently inactive, its shareholders remain obligated to participate in the company’s management due to ongoing legal proceedings with the State Revenue Service. “Rīgas satiksme” management argues that acquiring the remaining shares is a necessary step to ensure a legally sound conclusion to the company’s operations.
“The main goal of acquiring the shares of ‘Rīgas karte’ is to ensure full control over the company, which will allow for a faster and more efficient implementation of its liquidation process, without the need for coordination with the other shareholder,” emphasized Džineta Innusa, Chairman of the Board of “Rīgas satiksme.”
Established in 2007 as a joint venture between “Rīgas satiksme” (51%) and French technology company “Conduent Business Solutions” (49%), “Rīgas karte” was initially tasked with developing and maintaining the electronic payment system for Riga’s public transportation network, including the introduction and servicing of e-tickets and a ticket distribution network. The company’s creation aimed to modernize fare collection and improve efficiency within the city’s transit system.
Several years ago, “Rīgas satiksme” assumed full control of the electronic payment system, including e-tickets, and also took over the parking control system. This transition has reportedly resulted in annual savings of several tens of millions of euros for the city. The decision to fully integrate these functions under “Rīgas satiksme” reflects a broader strategy to streamline operations and reduce costs.
