Latvian police search flats and offices of major smelter's managers
RIGA, May 14 (RAPSI) – Latvian police have searched on Tuesday the flats and offices of the ailing Liepajas Metalurgs (LM) smelter’s managers and shareholders, police spokesperson Sigita Pildava told the press.
The raids were held by the Economic Crime Department as part of a campaign initiated by Martins Kriekis on Aug. 21 upon the instructions of LM shareholder Kirov Lipman.
The police are investigating alleged theft and abuse of office at the smelter. The details of the investigation have not been disclosed for security reasons.
Liepajas Metalurgs, the largest smelter in the Baltic region, is tottering on the brink of bankruptcy due to a crisis on the steel market. The Latvian government has set up a working group to find a way to help the plant.
LM management started dismissing workers in April and approved a plan to cut operating expenses by 3.7 million Lats ($7.4 million), administrative spending by 0.5 million Lats ($1 million), and sponsorship expenses by 0.5 million Lats ($1 million).