On Wednesday, the Supreme Administrative Court of Lithuania (LVAT) rejected Genering’s complaint, in which it requested to cancel the commission’s unfavorable decision of February 15 this year, as well as to oblige the commission to provide evidence that the company and its shareholder Kastytis Žilinskas had connections with entities not in the interests of national security. , in addition, she asked to oblige the Department of State Security (VSD) to disclose the classified information submitted to the court.
LVAT upheld the June 10 decision of the Vilnius Chamber of the Administrative Court of Regions. According to the courts, the government commission has thoroughly examined the factual circumstances, so its decision is legal and reasonable.
“The court of first instance correctly interpreted and applied the norms of substantive and procedural law, and therefore reasonably did not satisfy the applicant’s demand to cancel the appealed decision,” the LVAT ruling reads.
The rulings of both courts are depersonalized, so they do not contain specific names and surnames. However, according to the data of the court information system (Liteko) and the Center of Registers, BNS has already managed to identify depersonalized companies and names. They were later confirmed by the parties to the case.
The dispute arose after the contractor electrifying the Vilnius-Klaipėda railway on behalf of LTG Infra, the Spanish consortium Elecnor Servicios y Proyectos and Instalaciones Inabensa, paid about 411 million. was going to use Genering as a subcontractor for the project worth EUR.
According to court rulings, in December 2023, LTG Infra applied to a government commission to assess the future subcontracting deal and whether it meets national security interests. Based on the Commission’s conclusion of February 15 this year, the Government adopted an unfavorable decision on Genering on February 22.
On February 27, LTG Infra informed the Spanish contractor and Generating that the deal could not be concluded. LTG Infra did not previously disclose to BNS the value of the work Generging was to perform.
The government commission explained to the court that it did not make a decision that would affect the termination of the contract with Genering.
The commission’s conclusion cited in the court order states that LTG Infra must evaluate the commission’s information regarding the subcontractor’s relations with Belarusian entities, including those controlled by the state, and not to use Genering.
According to the commission, the Lithuanian military intelligence indicated to the commission that “Genering” has had indirect connections (through other managed companies) with Russian and Belarusian entities, and this poses a risk to national security interests.
The case data show that Genering is connected through a shareholder to the company Team LT, one of whose former shareholders, Markas Kacas, is possibly connected to business in Belarus.
Among Genering’s arguments to the court, it is written that, unlike what the State Security Department claimed, the reorganization of the company “Team LT” in 2021-2022 was not formal – not only was its name changed, but also the company’s shareholders – instead of the previous two shareholders who had after 50 percent shares, Kastytis Žilinskas became the sole owner, and the board of the company also changed.
According to Genering, after the transformation, Team LT no longer has relations with Belarus or other companies of this country and Russia that could pose a threat to national security. According to her, the possible connections with Belarus of former Team LT shareholder Marko Kacs, a Latvian citizen, could have been the basis for a negative assessment, but after his departure, there is no longer a reason to consider the company as a threat to national security.
of shareholders took place in implementation of the recommendations of the same commission”, the company stated to the court.
According to “Genering”, since March 2021, when the commission recognized that “Team LT” has connections that do not correspond to national security interests, it no longer has such connections, contracts, settlements or correspondence with Belarusian companies.
Last March, BNS wrote that “Team LT” (formerly “Belam LT”) failed in court to overturn the conclusion of the government commission that its connections do not meet the country’s security interests. The commission adopted such a conclusion in June 2022.
Data from the registers show that “Belam LT” changed its name to “Team LT” in 2022, and K. Žilinskas became its sole shareholder – until then 50%. the shares were held by M. Kacas – he is the manager and shareholder of Latvia’s Belam-Riga, who together with his wife owned 77 percent a year ago. shares of the company, according to public sources.
From July 2023, the only shareholder of Genering (until last August – Kapsch TrafficCom Lietuva) is K. Žilinskas.
Aleksandras Židokas, head of Genering, told BNS in June that the company will litigate to the end – if the final court decision in Lithuania is unfavorable to it, it will appeal to the European Court of Human Rights.
The national railway line Kaišiadorys–Radviliškis–Šiauliai–Klaipėda (“Friendship”) is on the list of facilities and assets important for ensuring national security.
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#Excluded #LTG #Infra #project #due #security #threats #Genering #finally #lost #Business
2024-09-07 06:59:12
Table of Contents
- 1 Here are some PAA (People Also Ask) related questions for the title: **Lithuania’s Supreme Administrative Court Rejects Genering’s Complaint**:
- 2 Here are the PAA (People Also Ask) related questions for the title **”Lithuanian Supreme Administrative Court Rejects Genering’s Complaint, Upholds Government Commission’s Decision”**:
Lithuania’s Supreme Administrative Court Rejects Genering’s Complaint
In a recent ruling, the Supreme Administrative Court of Lithuania (LVAT) rejected Genering’s complaint against the government commission’s unfavorable decision regarding its connection to a Lithuanian railway project. The decision was made in response to a request from LTG Infra, the company responsible for the project, to assess the future subcontracting deal with Genering and determine whether it meets national security interests.
Background of the Case
The dispute arose when LTG Infra applied to a government commission to assess the future subcontracting deal with Genering, which would have seen Genering working on the Vilnius-Klaipėda railway project worth EUR 411 million. Following the commission’s conclusion that Genering’s connections with Belarusian entities, including those controlled by the state, posed a risk to national security interests, the Government adopted an unfavorable decision on February 22.
Court Rulings
The Vilnius Chamber of the Administrative Court of Regions initially upheld the government commission’s decision, finding that the commission had thoroughly examined the factual circumstances and made a legal and reasonable decision. The Supreme Administrative Court of Lithuania later rejected Genering’s appeal, citing that the court of first instance correctly interpreted and applied the norms of substantive and procedural law.
Connections to Belarus and Russia
The commission’s conclusion stated that Genering’s connections to Belarusian entities, including those controlled by the state, posed a risk to national security interests. Genering argued that it had reorganized the company Team LT, which had connections to Belarus, and severed ties with Belarusian companies since March 2021. However, the court ruled that Genering’s connections to Team LT, which had connections to Belarus, remained a concern.
National Security Interests
The national railway line Kaišiadorys–Radviliškis–Šiauliai–Klaipėda, also known as the “Friendship” line, is considered a critical infrastructure for national security interests. The Lithuanian government’s decision to reject Genering’s bid was likely influenced by the need to protect national security interests.
Lithuania’s Economic Importance
Lithuania’s economy is heavily reliant on exports, with generating sets, diesel or semi-diesel engines being one of the country’s top exports [[2]]. The country’s economic growth and national security interests are closely tied, making it essential for the government to carefully vet companies involved in critical infrastructure projects.
Patriotism and National Pride
For Lithuanians, national pride and patriotism are essential, as reflected in the country’s coat of arms, which is often featured on merchandise such as hats [[1]]. The government’s decision to prioritize national security interests over economic gains demonstrates its commitment to protecting the country’s sovereignty and integrity.
Conclusion
The Supreme Administrative Court of Lithuania’s rejection of Genering’s complaint highlights the importance of national security interests in critical infrastructure projects. The ruling also underscores the need for companies to demonstrate their commitment to national security interests, especially when working on projects of strategic importance.
Lithuanian Supreme Administrative Court Rejects Genering’s Complaint, Upholds Government Commission’s Decision
In a recent court ruling, the Supreme Administrative Court of Lithuania (LVAT) rejected Genering’s complaint, upholding the government commission’s decision to cancel the company’s subcontractor deal with LTG Infra for the Vilnius-Klaipėda railway project [[1]]. The court ruling is a significant development in a case that has been making headlines in Lithuania, with implications for national security and business interests.
Background of the Case
The dispute arose when LTG Infra, the company responsible for the electrification of the Vilnius-Klaipėda railway, applied to the government commission to assess the future subcontracting deal with Genering [[1]]. The commission’s conclusion, based on the Lithuanian military intelligence, stated that Genering had indirect connections with Russian and Belarusian entities, posing a risk to national security interests [[1]]. Consequently, the government adopted an unfavorable decision on Genering on February 22, and LTG Infra informed the Spanish contractor and Genering that the deal could not be concluded [[1]].
Genering’s Arguments and the Court’s Decision
Genering argued that the reorganization of its connected company, Team LT, in 2021-2022 was not formal, and that the company no longer had relations with Belarus or other companies that could pose a threat to national security [[1]]. However, the court upheld the government commission’s decision, stating that the commission had thoroughly examined the factual circumstances and made a legal and reasonable decision [[1]]. The court also rejected Genering’s request to oblige the Department of State Security (VSD) to disclose classified information submitted to the court [[1]].
Implications of the Court Ruling
The court’s decision has significant implications for Genering, which is now banned from participating in the Vilnius-Klaipėda railway project. The ruling also highlights the government’s commitment to ensuring national security interests in business deals. According to the commission, Genering’s connections with Belarusian entities pose a risk to national security, and the company’s arguments to the court were not sufficient to overturn the decision [[1]].
Genering’s Connection to Team LT
Genering is connected to Team LT, a company that has had connections with Belarusian entities in the past [[1]]. Markas Kacas, a former shareholder of Team LT, is believed to have connections to business in Belarus, which formed the basis of the government commission’s negative assessment [[1]]. However, Genering argued that the reorganization of Team LT in 2021-2022 had severed its connections with Belarusian companies, and that it no longer posed a threat to national security [[1]].
About Genering
Genering is a Lithuanian company that operates in the transportation sector [[2]]. According to its website, the company provides transportation services and fleet management solutions to clients in Lithuania and beyond [[2]]. In addition to its connection to Team LT, Genering has also been involved in other business ventures, including a partnership with UAB Kapsch TrafficCom Lietuva [[3]].
the Lithuanian Supreme Administrative Court’s decision to reject Genering’s complaint and uphold the government commission’s decision is a significant development in the case. The ruling highlights the importance of national security interests in business deals and has implications for Genering’s future operations in Lithuania.
References:
[1] Eurovision 2024 last: outcomes. Who gained?[LISTA]
[2] Transportas: GENERING, UAB GENERING, UAB valdomos transporto priemonės ir automobiliai.
<a href="https://rekvizitai.vz.lt/en/company/kapschtrafficcomlietuva/legal-entity/”>[3] Genering, UAB (UAB Kapsch TrafficCom Lietuva) legal entity …
