Economics, Latvia, Markets and Companies, Telecomunications

Running a company, whose main goal is to generate as large a profit as possible for its owners, is not a government function, therefore the state-owned shares in Lattelecom must be sold, said Kampars. The sale of Lattelecom shares though must be organized so that it brings as much money as possible for the state.

"We will only be able to further discuss the matter after economic recovery begins in Latvia and the world. In the meantime, we have to streamline the company's management and expand the company's business also outside Latvia in order to increase the value of the company," stressed Kampars.

As reported, Kampars or a representative of the minister could have a meeting with representatives from the Scandinavian telecommunication corporation TeliaSonera in June to discuss further development of Lattelecom and changes at Lattelecom management, as Kampars' press secretary Sandris Sabajevs told LETA previously.

After the work on budget amendments is completed, Kampars or a representative of the minister wish to have a meeting with TeliaSonera representatives in June to discuss further cooperation between the Latvian government and TeliaSonera in the development of Lattelecom, and streamlining the management system at Lattelecom, said Sabajevs.

In Kampars' opinion, the current Lattelecom council, which has eleven members, needs to be downsized by reducing the number of council members elected by the state of Lavia as well as by TeliaSonera.

Kampars also believes that the salary for Lattelecom board chairperson should not exceed the salaries paid to board chairpersons at other government-run companies.

The declaration of Prime Minister Valdis Dombrovskis' (New Era) government states that privatization of Lattelecom and Latvijas Mobilais telefons, which was being actively debated in 2007 and 2008, will have to be put off until a later time.

As reported, Lattelecom was established in 1994. The Latvian government has a 51% stake in the company, whereas Tilts Communications consortium controls the remaining 49% of Lattelecom shares. "Tilts Communications" belongs to Sonera Corporations subsidiary Sonera Holdings B.V..

99.4% of Sonera Corporations shares belong to Telia Sonera AB.