Acknowledging a number of shortcomings, the manager of “Rēzeknes satiksme” is dismissed

Taking into account the results of the audit and the shortcomings in the current work, Jevgēnijs Koršenkovs, a member of the board of Rēzekne municipality SIA “Rēzeknes satiksme”, has been dismissed from office, the city council approves.

The chairman of Rezekne City Council Aleksandrs Bartaševičs (S), who was the representative of the shareholder until the end of last year, stated that Koršenkovs did not justify the trust.

“In my opinion, the manager did not have enough competencies in the organization of the company’s work and understanding that the changing external conditions and the market oblige the manager to change as well. The head of a municipal company has no right to relax even for a moment or even worse – to create a comfort zone around him. This leads to the loss of landmarks and losses to the company. This is especially difficult when the company’s revenue comes from municipal subsidies, ”commented the mayor.

Vietvara points out that the functional audit report commissioned by the City Council in 2019 lists a number of findings that cause the shareholder’s representative to be concerned about the company’s board member acting as a good and diligent owner. The audit concluded that there are significant problems in the operation of technical means, for example, the program “TeamWork” is registered in the name of another owner, but it is used by “Rēzeknes satiksme”. In addition, following the audit instruction, the problem was not legally resolved. The City Council points out that this is a gross mistake of a member of the Board, for which liability for tax evasion has arisen.

It was also found that the job descriptions do not contain complete information, the amount of hourly wages for bus drivers and dispatchers cannot be traced, and the distribution of employees’ work responsibilities is not optimal. Also, the member of the Board has not ensured the requirements of regulatory enactments, which determine the timely detection of violations, legal issues in the company are not properly supervised, supervision of contracts is not traceable, decisions on labor disputes are not sufficiently legally correct and substantiated. It has also been recorded that the range of suppliers in procurement is unreasonably narrowed.

“From all this it can be concluded that all three conditions have been met for a member of the board to be recognized as the main person responsible for the existing disturbances in Rēzekne traffic,” Bartaševičs points out. Namely, there has been a loss of profit, there has been the involvement of a board member and he has not proved that he acted as a good and diligent owner.

Currently, Viktors Borcovs, Head of Development and Sales of Rēzeknes satiksme Services, has been temporarily appointed a member of the Board. He will be in charge of the company until a new board member is selected through a competition. The City Council estimates that the procedure could take no more than two months. However, the interim administration will have to improve the company’s operations in line with the auditor’s recommendations without waiting for the appointment of a new board member.

Currently, the representative of the shareholder in Rēzeknes satiksme is the head of the municipal Urban Environment and Development Department Georgi Orlov.

The public media portal “” reports that Koršenkovs calls the audit report fabrication. He has sent materials to the Prosecutor General’s Office, applied to the Corruption Prevention and Combating Bureau and plans to go to court. He has also announced that he is leaving the party “Sobeža”, which is also represented by the mayor of Rēzekne.

The data of “” show that Koršenkovs has managed the municipal company since its establishment in 2011. Last year, the carrier’s turnover was 2.022 million euros, but the profit was 36,798 euros.

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