Combating corruption

Management of risks associated with corruption and conflict of interest at SIA “Rīgas namu pārvaldnieks”

SIA “Rīgas namu pārvaldnieks” (hereinafter referred to as “the Company”) in the Corporate Governance Code has committed to taking measures to ensure ethical, responsible, sustainable, and transparent corporate governance, properly observing the interests of the Company and its stakeholders, promoting the achievement of the Company’s objectives, and ensuring that the Company’s clients receive quality property management services. Managing the risks of corruption and conflicts of interest is a crucial condition for achieving the objectives set out in the Corporate Governance Code. It is essential that preventive measures are widely used specifically to reduce the risk of corruption, thereby minimizing the possibility of corruption.

In the Company, the management of corruption and conflicts of interest risks is carried out in accordance with the Conflict of Interest and Corruption Risk Prevention Policy, which sets out the policy objective of ensuring the effective operation of the Company’s conflict of interest and corruption risk prevention system, establishing preventive measures and actions to prevent corruption and conflicts of interest risks, and controlling the environment to reduce and prevent violations of the prescribed norms and corrupt activities.

In 2023, we implemented planned measures to reduce corruption and conflicts of interest risks. Those responsible for implementing the measures reported on the status of implementation once a quarter, and information on implementation was compiled and reported to the Company’s board and council. When planning measures to reduce corruption and conflicts of interest risks in 2024, we utilized the experience gained from implementing measures in 2022 and 2023, including the experience of measures whose implementation was delayed or not fully carried out.

To ensure the achievement of the objectives of the Conflict of Interest and Corruption Risk Prevention Policy, the Company has introduced and ensures the management of corruption and conflicts of interest risks, which is carried out in accordance with Cabinet Regulation No. 630 of October 17, 2017, “Regulations on the Basic Requirements of the Internal Control System for the Prevention of Corruption and Conflict of Interest in Public Persons’ Institutions”, Riga City Council’s anti-corruption strategy for 2022-2025, recommendations from the Corruption Prevention and Combating Bureau, and examples of best practices.

Measures to reduce corruption and conflicts of interest risks in the Company include:

1. Development of an annual anti-corruption action plan, regular monitoring of action implementation, and reporting to the Company’s board and council on action implementation once a quarter.
2. Regular training for Company employees on corruption and conflicts of interest risks, employee responsibilities, and risk prevention.
3. Regular updating of the list of positions within the Company exposed to corruption risks.
4. Identification of Company officials by assessing possible corruption and conflicts of interest risks.
5. Strengthening self-assessment, including Company-designated employee self-assessment questionnaires regarding conflicts of interest and corruption risks.
6. Control of procurement processes, including procurement risk analysis.
7. Control of contract performance.
8. Comprehensive improvement of the internal control environment with the aim of reducing corruption and conflicts of interest risks.
9. Evaluation of corruption and conflicts of interest risk management practices and improvement of management.
10. Integration of corruption and conflicts of interest risk management with the management of other categories of risks within the Company.
11. Opportunity for Company employees and clients to submit anonymous alerts about possible violations, including cases of corruption and conflicts of interest, and prompt review and response to alert reports.

Please note that a unified, centralized alert system has been established in the Riga City Council to ensure necessary protection and confidentiality for individuals reporting possible conflicts of interest involving officials or other corrupt activities by employees. The alert center in the municipality is the Internal Control and Corruption Prevention Department of the Riga City Council, whose employees are contact persons for alert-related matters (phone: 67012032, 67026859, email: trauksme@riga.lv). Further information on raising alerts can be found at www.trauksmescelejs.lv.