Defending the public interest, the Municipality has asked to investigate if laws and other legal acts regulating the activities of municipalities and management of property and public investment had not been violated when Air Lituanica’s authorised capital was being formed.
The Prosecutor General’s Office was also asked to investigate the legality of arrangements when various companies established by the Municipality transferred funds to Air Lituanica and assumed obligations for the company even though their activities were not related to the airline.
The current Administration of Vilnius City Municipality believes that assumption of such obligations fundamentally worsened the financial situation of companies that had to satisfy public interest, whereas arrangements violated the Municipality’s rights and duties as far as the public and creditors were concerned.
In its address, the Municipality requested to analyse the movement of funds between accounts as well as accounting and other documents in order to ascertain if Air Lituanica’s authorised capital was formed and working capital replenished in legal ways.
Air Lituanica was founded by Vilnius City Municipality in the previous term of office. The company ended its operations in May and declared bankruptcy soon afterwards.
Be the first to comment