VILNIUS — Four senior officials from the state-run Vilniaus Vandenys water utility company, including the CEO have been arrested in a bust by anti-corruption police.

Vilniaus Vandenys is the state-run company responsible for the management of the capital’s water supplies. Vilniaus Vandenys is the biggest water company in Lithuania and runs water supply and sewage systems not only in Vilnius, but also in [private_supervisor]Šalčininkai, Švenčionys and the region surrounding the capital, too. The company supplies drinking water and collects and treats waste water.

The Special Investigation Service (STT) raided the company office on Monday and arrested the company director Darius Norkus, sales and marketing director Nerijus Laurinaitis and welfare and economic services manager Tomas Biknevičius, as well as one consultant who was not named.

The STT made the arrests as part of an investigation into bribery and the misuse and falsification of documents. The pre-trial investigation into the abuse of authority has begun at the water utility. The interest of the STT is the procurement procedures made by the company, which handles public money.

Vilnius Mayor Vilius Navickas fired the officials on the spot.

“This is underestimated corruption, bribery and non-transparent transactions in the municipality owned companies. Therefore, today, I suspend the Vilniaus Vandenys board of company directors immediately from their duties,” Navickas told local daily Verslo Žinios.

The company, which runs at a loss because of the corruption, has tried and failed recently to raise the price for consumers in an effort to cover their tracks.

The Public Procurement Office published figures one month ago saying that out of 31 inspected transactions, 26 had major violations in procurement procedures.

Last week, Norkus published a report saying that criminals would be rooted out of the company. He said in the report that 87 percent of the company’s procurements were done by former directors. Norkus became director in May 2009.

Last week the Price and Energy Control Commission — which dictates the price of electricity, heating, water and other services — turned down a proposal to raise the price of cold water from 4.22 litai (€1.22) per cubic meter to 6.33 litai, a one third increase. The company said they needed to do it because they were running a loss.

The Minister of Economy Dainius Kreivys also said the company would need to prove why they need to burden the public with higher prices.

The company told the municipal government that it owes around 12 million litai (€3.48 million) to creditors.

Prosecutors have not yet decided whether they will detain the officials. [/private_supervisor] [private_subscription 1 month]Šalčininkai, Švenčionys and the region surrounding the capital, too. The company supplies drinking water and collects and treats waste water.

The Special Investigation Service (STT) raided the company office on Monday and arrested the company director Darius Norkus, sales and marketing director Nerijus Laurinaitis and welfare and economic services manager Tomas Biknevičius, as well as one consultant who was not named.

The STT made the arrests as part of an investigation into bribery and the misuse and falsification of documents. The pre-trial investigation into the abuse of authority has begun at the water utility. The interest of the STT is the procurement procedures made by the company, which handles public money.

Vilnius Mayor Vilius Navickas fired the officials on the spot.

“This is underestimated corruption, bribery and non-transparent transactions in the municipality owned companies. Therefore, today, I suspend the Vilniaus Vandenys board of company directors immediately from their duties,” Navickas told local daily Verslo Žinios.

The company, which runs at a loss because of the corruption, has tried and failed recently to raise the price for consumers in an effort to cover their tracks.

The Public Procurement Office published figures one month ago saying that out of 31 inspected transactions, 26 had major violations in procurement procedures.

Last week, Norkus published a report saying that criminals would be rooted out of the company. He said in the report that 87 percent of the company’s procurements were done by former directors. Norkus became director in May 2009.

Last week the Price and Energy Control Commission — which dictates the price of electricity, heating, water and other services — turned down a proposal to raise the price of cold water from 4.22 litai (€1.22) per cubic meter to 6.33 litai, a one third increase. The company said they needed to do it because they were running a loss.

The Minister of Economy Dainius Kreivys also said the company would need to prove why they need to burden the public with higher prices.

The company told the municipal government that it owes around 12 million litai (€3.48 million) to creditors.

Prosecutors have not yet decided whether they will detain the officials. [/private_subscription 1 month] [private_subscription 4 months]Šalčininkai, Švenčionys and the region surrounding the capital, too. The company supplies drinking water and collects and treats waste water.

The Special Investigation Service (STT) raided the company office on Monday and arrested the company director Darius Norkus, sales and marketing director Nerijus Laurinaitis and welfare and economic services manager Tomas Biknevičius, as well as one consultant who was not named.

The STT made the arrests as part of an investigation into bribery and the misuse and falsification of documents. The pre-trial investigation into the abuse of authority has begun at the water utility. The interest of the STT is the procurement procedures made by the company, which handles public money.

Vilnius Mayor Vilius Navickas fired the officials on the spot.

“This is underestimated corruption, bribery and non-transparent transactions in the municipality owned companies. Therefore, today, I suspend the Vilniaus Vandenys board of company directors immediately from their duties,” Navickas told local daily Verslo Žinios.

The company, which runs at a loss because of the corruption, has tried and failed recently to raise the price for consumers in an effort to cover their tracks.

The Public Procurement Office published figures one month ago saying that out of 31 inspected transactions, 26 had major violations in procurement procedures.

Last week, Norkus published a report saying that criminals would be rooted out of the company. He said in the report that 87 percent of the company’s procurements were done by former directors. Norkus became director in May 2009.

Last week the Price and Energy Control Commission — which dictates the price of electricity, heating, water and other services — turned down a proposal to raise the price of cold water from 4.22 litai (€1.22) per cubic meter to 6.33 litai, a one third increase. The company said they needed to do it because they were running a loss.

The Minister of Economy Dainius Kreivys also said the company would need to prove why they need to burden the public with higher prices.

The company told the municipal government that it owes around 12 million litai (€3.48 million) to creditors.

Prosecutors have not yet decided whether they will detain the officials. [/private_subscription 4 months] [private_subscription 1 year]Šalčininkai, Švenčionys and the region surrounding the capital, too. The company supplies drinking water and collects and treats waste water.

The Special Investigation Service (STT) raided the company office on Monday and arrested the company director Darius Norkus, sales and marketing director Nerijus Laurinaitis and welfare and economic services manager Tomas Biknevičius, as well as one consultant who was not named.

The STT made the arrests as part of an investigation into bribery and the misuse and falsification of documents. The pre-trial investigation into the abuse of authority has begun at the water utility. The interest of the STT is the procurement procedures made by the company, which handles public money.

Vilnius Mayor Vilius Navickas fired the officials on the spot.

“This is underestimated corruption, bribery and non-transparent transactions in the municipality owned companies. Therefore, today, I suspend the Vilniaus Vandenys board of company directors immediately from their duties,” Navickas told local daily Verslo Žinios.

The company, which runs at a loss because of the corruption, has tried and failed recently to raise the price for consumers in an effort to cover their tracks.

The Public Procurement Office published figures one month ago saying that out of 31 inspected transactions, 26 had major violations in procurement procedures.

Last week, Norkus published a report saying that criminals would be rooted out of the company. He said in the report that 87 percent of the company’s procurements were done by former directors. Norkus became director in May 2009.

Last week the Price and Energy Control Commission — which dictates the price of electricity, heating, water and other services — turned down a proposal to raise the price of cold water from 4.22 litai (€1.22) per cubic meter to 6.33 litai, a one third increase. The company said they needed to do it because they were running a loss.

The Minister of Economy Dainius Kreivys also said the company would need to prove why they need to burden the public with higher prices.

The company told the municipal government that it owes around 12 million litai (€3.48 million) to creditors.

Prosecutors have not yet decided whether they will detain the officials. [/private_subscription 1 year]

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